State Tax Rulings
Free state tax letter rulings and advisory opinions with plain-English summaries, full citations, and the original source on every page.
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Were goods shipped by an out-of-state seller through a Florida freight forwarder for export exempt from Florida sales and use tax?
Yes, while the export process remained continuous. The seller and buyer were outside Florida, the goods were outside Florida at sale, and a common carrier brought them to a Florida forwarder already…
Could a manufacturer keep its Tennessee industrial-machinery authorization after converting a sales subsidiary into a disregarded single-member LLC?
Yes, if operations at the authorized manufacturing location did not change. Treating the converted single-member LLC as disregarded did not change that location's manufacturing status, which…
When a dealer sells a trade-in vehicle before receiving its title from the prior lienholder, on what date is the dealer's security interest in that vehicle perfected?
A dealer's security interest in a vehicle relates back to (is perfected as of) the date of sale only if the dealer files the certificate of title and required lien paperwork with the Division of…
How did Florida documentary stamp and annual intangible taxes apply to timeshare cooperative shares and notes transferred to an out-of-state subsidiary?
The cooperative stock certificate was not separately documentary-stamp-taxable because tax applied to the occupancy-right document, and the inseparable stock and dwelling rights avoided annual…
Did the insurer qualify for Florida's limited tax exemption for a property-and-casualty insurer owned at least 51% by minority persons?
No. Although the insurer received an initial Florida certificate of authority after the statutory date, its direct owner was a corporation, not a statutory minority person. Sections 624.4072 and…
Were subscriptions to an online real-estate information service, downloaded software, CDs, and shipping subject to Florida sales tax?
The online database subscription and electronically downloaded software were not taxable tangible property. Free access-software CDs did not tax the subscriber, but the provider owed tax when buying…
When is a Kansas retailer's out-of-state shipment exempt from Kansas sales tax, and what proof of delivery is needed?
The out-of-state shipment is not taxed. The Department ruled that when a seller is obligated to deliver goods to a point outside Kansas — or delivers them to an interstate common carrier or the…
Are a church-affiliated camp's fees for summer camp and instructional activities subject to Kansas sales tax?
No. The Department ruled that the fees paid to attend the church-affiliated summer camp are not subject to Kansas sales tax, and neither are the fees for its instructional classes — archery,…
Can New Mexico refund overpaid gross receipts tax if the business discovers a missed deduction and files its refund claim more than three years after the tax was due?
No — the refund claim was filed too late and had to be denied. Perez Trucking's bookkeeper later discovered that in July–September 1997 she had failed to claim a gross receipts tax deduction for…
When the IRS audits a corporation and changes its income, must the corporation file an amended Texas franchise-tax report, and by when?
Yes. Under Tax Code Sec. 171.212(a)(1), a corporation must file an amended franchise-tax report when its net taxable earned surplus changes as a result of an IRS audit or other adjustment, and Sec.…
Can an out-of-state county claim a Kansas sales-tax exemption on goods it takes delivery of in Kansas?
No. The Department ruled that a Missouri county may not claim a Kansas sales-tax exemption when it takes delivery of asphalt emulsion in Kansas. The sale occurs in Kansas when possession transfers…
Were separately stated late-payment fees on electric, water, and sewer utility bills subject to Florida sales tax?
No. The utility separately stated a 1.5% late fee on the next bill only when the customer failed to pay the prior balance by its due date. Because the customer could avoid the charge solely by…
Did a federal-facility contractor have to collect Tennessee tax when it regularly sold surplus federal property as the government's disclosed agent?
The sales were too regular to qualify as casual and isolated. But the contractor did not have to collect or remit tax when it sold as the federal government's disclosed agent. Buyers taking title or…
How did an eligible citrus processor elect Florida's single-sales-factor formula and combine it with three-factor affiliates on a consolidated return?
An eligible citrus processor elected the single-sales-factor method by using it on the originally filed return for that tax year. The election was company-by-company, annual, and irrevocable for…
Was the allocated price of a hotel's land, improvements, and fixtures subject to Florida sales tax because a broker handled the sale?
No. The documents allocated value to land, improvements, and fixtures and did not specifically identify inventory, vehicles, or other tangible items within those categories. Those assets were real…
Which carpet, furniture, contents, structural-cleaning, storage, and drying-equipment charges were taxable when separately stated?
Carpet and furniture cleaning were taxable. Carpet reinstallation, miscellaneous-content cleaning, and structural cleaning were nontaxable when separately stated. Drying equipment was taxable if the…
When must a Louisiana seller report sales tax on season tickets purchased through installment payments?
The seller reported the sale when full payment was collected, tickets were issued, or admission was provided—whichever happened first. With installments, that was generally the final-payment month…
What South Carolina interest rate applied to tax underpayments and overpayments from January through March 2002?
The rate was 6% for January 1 through March 31, 2002, compounded daily except that simple interest applied to underpaid declarations of estimated tax.
Which Kansas grain elevator purchases are taxable and which are exempt on and after January 1, 2001?
This notice tells Kansas country and terminal grain elevator operators which purchases are taxable or exempt on and after January 1, 2001, and supersedes prior elevator notices. The simple rule:…
Did previously granted permission to stop filing Florida consolidated returns remain valid after the actual taxable-income difference exceeded the estimate?
Yes. The parent notified the Department that the actual difference between separate and consolidated pro forma Florida taxable income was greater than the amount presented in its earlier request.…
Were sales of timeshare cooperative shares and shareholders' annual common-expense assessments subject to Florida sales, transient-rental, or local tourism taxes?
No. A purchaser acquired a cooperative stock ownership interest with inseparable occupancy rights, not a lease, license, transient rental, or tangible item. Annual assessments paid each…
How does a Nebraska estate or trust recompute the 2001 federal alternative minimum tax to figure the Nebraska minimum tax?
Recompute the federal AMT on Nebraska terms. Under Revenue Ruling 23-01-1, Neb. Rev. Stat. §77-2717 requires an estate or trust to recalculate the 2001 federal alternative minimum tax (Federal Form…
How does a Nebraska individual figure the 2001 credit for prior year minimum tax on the Nebraska return?
Recompute the federal credit for Nebraska. Under Revenue Ruling 22-01-2, Neb. Rev. Stat. §77-2715(2) requires an individual to recalculate the federal credit for prior year minimum tax (Federal Form…
How does a Nebraska individual recompute the 2001 federal alternative minimum tax to figure the Nebraska minimum tax?
Recompute the federal AMT on Nebraska terms. Under Revenue Ruling 22-01-1, Neb. Rev. Stat. §77-2715 requires a Nebraska individual to recalculate the 2001 federal alternative minimum tax (Federal…
What information did South Carolina require to approve a transfer, devise, or distribution of an unused conservation tax credit?
The transferor had to request written Department approval and identify the parties, effective date, credit amounts, consideration, and required waivers.
Which personally used passenger vehicles and pickup trucks qualified for the reduced property-tax assessment ratio?
Qualifying passenger vehicles and light trucks used primarily by an individual for personal, nonbusiness purposes received the historical reduced assessment ratio.
Which medicines and insecticides sold to veterinarians qualified for South Carolina sales-and-use-tax exemptions?
Most veterinary purchases were taxable unless a listed exemption applied, including qualifying farm-animal treatments, cancer-related products, or free prescription samples.
Could a nonprofit religious foundation buy meals, lodging, handouts, decorations, rooms, and equipment tax-free for its speaker events?
No. The speaker presentation was the true object, so meals and other event items were incidental taxable purchases by the foundation. Separate qualifying fundraiser merchandise could be bought and…
A state urban-development subsidiary is condemning land in midtown Manhattan and will ground-lease it to our LLC for 99 years (with an option to buy for $10 after 29 years) so we can build an office tower to be converted to condominium units for our two members. (1) Is transfer tax due when the state delivers vacant possession of the land to us and our lease rights actually begin? (2) Is the tax based only on the $85.56 million land price plus limited percentage rent, or does it include reimbursable excess acquisition costs? (3) Does merely signing the ground lease and recording a memorandum of it trigger tax before possession is delivered? (4) Is transferring the finished condominium units from the LLC to its two members, who always beneficially owned their own space, exempt?
Four different answers to four issues, most favorable to the taxpayer. This ruling addresses the New York Times Building project: a state ESDC subsidiary ('42DP') would condemn land at 8th…
Did a California LLC electing corporate tax treatment owe the minimum franchise tax for a 12-day formation year or its first full taxable year?
No minimum franchise tax was due for either period on the submitted facts. The LLC legally came into existence when its articles were filed on December 19, 2000, not when a later registration was…
What South Carolina per-capita income figure did RIB 01-17 publish for the corporate-headquarters credit?
It published $23,952 as the most recently available South Carolina per-capita income figure for testing the personal-property component of the headquarters credit.
Is a city's purchase of a diesel generator to produce electricity for sale exempt from Kansas sales tax?
Yes, under the manufacturing exemption. The Department ruled that a city's purchase and installation of a diesel generator and associated equipment to produce electricity for sale is exempt under…
At a weight-management clinic, which charges are taxable — instructional classes, fitness-center membership, or food products?
It depends on the charge. The Department ruled that fees clients pay to attend or participate in the clinic's classes — including the individualized private weight-management class and the 'Mommy…
How did Florida sales tax apply to installed-price flooring contracts, post-sale payment discounts, and advertising that no additional tax would be charged?
The flooring company was the consumer under its installed-price real-property contracts, so it paid sales or use tax on materials and did not charge the owner tax. Early-payment or cash discounts…
Which of a school PTO's carnival charges — game tickets, a cakewalk, a moonwalk — are subject to Kansas sales tax?
The game, cakewalk, and moonwalk charges are taxable; sales of goods are not. The Department ruled that although K.S.A. 79-3606(yy) exempts a parent-teacher organization's sales of tangible personal…
If a subcontractor's services are resold up a chain and the middleman promised to handle the gross receipts tax but never did, does the subcontractor still owe New Mexico gross receipts tax on what he was paid?
Yes — he still owed the gross receipts tax on his own sale of services, so the protest was denied. Retired engineer Richard Hall performed work for Allied Signal as a subcontractor of Pathfinder,…
Can a corporation use push-down accounting to revalue its assets when computing taxable capital for the Texas franchise tax?
No. For the pre-2008 franchise tax, a corporation generally computes surplus, assets, and debts under generally accepted accounting principles (GAAP) (Tax Code Sec. 171.109(b)), but Sec. 171.109(m)…
Did the interstate-vessel exemption cover fuel, supplies, repairs, and laundry for stevedoring or cargo-handling vessels that never left Louisiana waters?
No for periods beginning November 28, 2001. The vessel's own movement controlled, not the interstate destination of the barges or cargo, so purchases for vessels operating wholly in Louisiana waters…
Was a licensed vehicle dealer's sale of a privately owned car to the dealer's child exempt as a family transfer?
No. A dealer was engaged in selling motor vehicles, so a car sold to the dealer's child was taxable even if it was privately owned and not dealer inventory.
Was labor to install a lift gate on a newly registered truck taxable fabrication or nontaxable installation labor?
Taxable fabrication when the truck qualified as new and the installation contract was made within 60 days of registration; used-truck installation differed.
Is there a 50% limit on the base amount for the Texas franchise-tax research and development credit, and will penalties be waived where the form did not show it?
Yes - there is a base amount limit of 50% of current qualified research expenses for the franchise-tax research and development credit. A return preparer pointed out that the Texas Schedule F form…
Is a company's website-hosting, database, and website-design business taxable in Utah when its servers and software sit outside the state?
No sales tax applies to application-hosting and server-storage services when the Company's software and hardware stay outside Utah and customers never download software onto a Utah computer —…
Does an out-of-state mortgage banking LLC create Utah income tax nexus by using a Utah-based loan originator and servicing loans secured by Utah property?
Yes. Using a Utah-based loan originator, servicing loans secured by Utah real property, and using Utah courts to foreclose are all activities "significantly associated" with maintaining a market in…
Which documents in an employer-sponsored employee relocation home sale were subject to Florida documentary stamp tax?
Only the completed deed from the relocating employee to the third-party buyer was taxable. The reviewed relocation-management agreement, employee-to-relocation-company sale contract, power of…
Did a 14.4-mile pipeline connecting two desalination facilities qualify for Florida's industrial machinery and equipment exemption?
Yes. The pipeline did more than transport partly treated water: it mixed required treatment chemicals, and potable water could not be produced without that function. The continuous pipeline was…
Under Kansas's original 2001 historic rehabilitation credit, could credits be transferred or specially allocated, and could banks or insurers claim them?
Under the 2001 statute, the Kansas historic rehabilitation credit was not transferable. A partnership, S corporation, LLC, or other flow-through entity allocated the credit to owners according to…
Did chemicals used in power-plant air-pollution systems and closed cooling-water systems qualify for Florida's specialty-chemical exemption?
No. Chemicals used in flue-gas desulfurization, nitrogen-oxide removal, and turbine water-injection systems controlled airborne pollutants, not wastewater. Chemicals in closed recirculating cooling…
What disclosures and records did a Louisiana dealer need when advertising that it would absorb sales or use tax for a purchaser?
The advertisement had to say the dealer would remit the unpaid tax for the purchaser, and the invoice or other writing had to separately show the tax the dealer accepted. “All taxes included” was…
Did an out-of-state manufacturer create Utah franchise-tax nexus by keeping a constant stock of its components at a Utah subcontractor before sale to a Utah customer?
Yes. The Commission said maintaining a constant inventory at a Utah subcontractor was more than a minimal activity and was significantly associated with maintaining a Utah market. The manufacturer…
Did an out-of-state seller create Utah sales-tax nexus by hiring a Utah call center to answer inbound calls from non-Utah customers and relay their orders?
No, under the limited facts presented. The Utah call center answered inbound calls from customers outside Utah, relayed orders to the client, did not solicit Utah customers, did not distribute the…
Which of a device seller's charges — installation, training, repairs, warranty, tech support, freight, and others — are subject to Kansas sales tax?
It depends on the charge. The Department ruled that the electronic access control devices themselves — plus installation, repairs, extended warranty, a credit allowance, management charges, artwork…
Was the entire single price for a cold sandwich and carbonated drink taxable when the bundle was bagged to go?
No. On the stated assumptions, only the portion allocated to the taxable carbonated beverage was taxed; the cold sandwich portion remained exempt.
Are advertising catalogs given to customers free of charge subject to Kansas sales or use tax, and does Kansas exempt periodicals?
No periodical exemption, and the catalogs are taxable. The Department ruled that Kansas does not exempt periodicals from sales or compensating (use) tax, so a company's industry catalogs — even…
Which generating-plant, reclaimed-water, wastewater-treatment equipment, and chemicals qualified for Florida sales-tax exemptions?
Qualifying machinery and equipment used in natural-gas electricity and steam generation were exempt, including integrated production and mandated pollution-control systems but not distribution…
When did a Florida timeshare homeowners association filing federal Form 1120-H have to file Florida Form F-1120?
The association filed Florida Form F-1120 for the first year it legally elected and filed federal Form 1120-H. It did not need subsequent Florida returns while it continued lawful annual 1120-H…
Were charges for fumigating cargo containers and their contents subject to Florida's tax on nonresidential pest-control services?
No. Florida's taxable nonresidential pest-control category covered services to nonresidential buildings and expressly excluded services provided to tangible personal property. Cargo containers and…
Are engineering, design, fabrication, and installation of control panels for a manufacturer's machinery exempt from Kansas sales tax?
Yes, when two conditions are met. The Department ruled that a company's engineering, design, fabrication, and installation of control panels for machinery and equipment — together with the related…
Which mobility and daily-living products, repairs, rentals, and installations were exempt from Tennessee sales tax?
Many specified mobility and corrective devices, their qualifying repairs, and wheelchair, scooter, and walker rentals were exempt. Convenience items and fixed ramps were not exempt, stair-lift…
Can a hands-off company president escape personal liability for withholding tax the company deducted but never paid over, by claiming he did not know and had reasonable cause?
No — the president was personally liable, and the reasonable-cause exception did not save him, so the protest was granted only on the estimate for three years and otherwise denied. Hal Dean was the…
Is a corporate officer who controls wage payments personally liable for withholding tax the company deducted but never remitted, and does the seven-year audit period reach him individually?
Yes on both — the officer was personally liable and the seven-year period reached him — but the Department's estimate for three years was cut to the actual amounts in the records, so the protest was…
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