State Tax Rulings
Free state tax letter rulings and advisory opinions with plain-English summaries, full citations, and the original source on every page.
No rulings match these filters
Try fewer or different words, check the spelling, or clear the filters to browse everything.
Does a car dealer owe Texas sales tax on a monthly subscription fee paid to an internet lead-generation service that connects potential buyers to dealers?
No. The Comptroller ruled that a flat monthly subscription fee car dealers paid to an internet-based service that connected potential buyers to the nearest subscribing dealer was a charge for…
Can homeowners' association members avoid New York's parking taxes when an independent company, rather than the association itself, operates the association's garage?
It depends on how the money flows and when. Before a February 6, 2001 law change, the exemption required parking charges to be paid directly to the homeowners' association itself, so members who…
We're ESDC, developing the Gateway Center retail project in Brooklyn's Fresh Creek Renewal Area. The developer will sell portions of the site to retail tenants, everyone will lease back to us during construction, and outside lenders will finance the buildout secured by mortgages naming us as mortgagee before we assign our interest to the real lenders. Is that financing -- and its later modifications -- exempt from mortgage recording tax?
Exempt for mortgages naming ESDC as mortgagee; later increases in debt remain taxable. Empire State Development Corp. (ESDC) adopted a General Project Plan for the Gateway Center Land Use…
Are pet pedicures (nail trims) performed by a veterinarian and staff exempt from New York sales tax as veterinary medicine, or are they taxable grooming?
Taxable. Even though the veterinarian frames pet pedicures as preventive health care, New York's veterinary exemption only covers services that are the actual practice of veterinary medicine —…
Does New York's under-$110 clothing exemption apply to fabric sold by the yard, when the total purchase costs $110 or more even though each individual yard costs less?
No. New York's clothing exemption for items priced under $110 applies per item as actually sold, not per yard. Five yards of $50-per-yard fabric sold together as a single purchase costs $250 total,…
We're ESDC, developing the Harlem Center retail/office/hotel project on West 125th Street. A private developer will borrow from outside lenders, and we'll be named mortgagee on the financing before assigning our interest to the real lenders -- with the mortgage likely refinanced and modified over the years as the project moves from construction to permanent financing. Is all of that exempt from mortgage recording tax?
Exempt for mortgages naming ESDC as mortgagee; later increases in debt remain taxable. Empire State Development Corp. (ESDC, formerly the NYS Urban Development Corporation) adopted a General Project…
Are retirement, thrift, and benefits-equalization plan distributions paid to Federal Reserve System employees exempt from New York personal income tax?
Yes. Because the Federal Reserve System is treated as a federal instrumentality, distributions from its Retirement Plan, its Thrift Plan (other than in-service withdrawals), and the related…
Were a timeshare developer's receivables warehouse loan and collateral assignments exempt from documentary stamp and nonrecurring intangible tax?
Yes. Consumer notes already bearing documentary stamp tax were mortgage-secured collateral obligations pledged under a qualifying wholesale warehouse agreement, so the receivables loan was exempt.…
Which grain-elevator industrial fixtures, support facilities, and foundations are exempt from Kansas sales tax under the integrated-production exemption?
Mostly exempt. The Department ruled that grain-elevator industrial fixtures, support facilities, and special foundations that are necessary for production - dump/boot pits and elevator legs, dryer…
What did 2001 Senate Bill 44 change about the Kansas Homestead Property Tax Refund and Certificates of Eligibility?
2001 Senate Bill 44 (Sections 1-3, effective April 12, 2001) made three changes to the Kansas Homestead Property Tax Refund law. It removed outdated eligibility language about certain…
When were prescription diets and curative veterinary products for animals exempt from Florida sales tax?
They were exempt when a licensed veterinarian sold curative or remedial diets or products in connection with treatment, including items ordered or prescribed for a diagnosed disorder. Off-the-shelf…
Are watch and clock repair labor, cleaning, and replacement parts subject to Kansas state and local sales tax?
Yes. The total charge for watch and clock repair services and parts was subject to Kansas state and local sales tax, and watch cleaning counted as taxable maintenance. The 1998 residential repair…
Does a waste hauler have to charge Texas sales tax on industrial solid waste that's mixed in with regular taxable garbage, and what proof does a customer need to claim the exemption?
Disposing of industrial solid waste (as defined by the Health and Safety Code) is not a taxable waste collection service in Texas, even when it's mixed with taxable garbage or municipal solid waste…
Was food-grade white mineral oil exempt from Florida pollutants tax when sold for food, cosmetic, or pharmaceutical uses?
Yes, for the five documented sales to food, cosmetic, and pharmaceutical businesses. Products intended for the human body, hygiene, or ingestion were excluded from the pollutant definition. Because…
Are cartons purchased to distribute a product exempt from Kansas sales tax as ingredient or component parts, or taxable if they are returnable?
Taxable if returnable. The Department ruled that the client must pay Kansas sales tax on its carton purchases. Containers can be exempt ingredient or component parts under K.S.A. 79-3606(m) and…
How did South Carolina sales tax, admissions tax, and alcoholic-beverage rules apply to nonprofit fundraising events?
Treatment depended on the event's facts: genuine donations could be nontaxable, while meals, admissions, drinks, or auction sales could trigger tax, licenses, or permits.
Which California state-agency school programs qualified credentialed teachers for the teacher retention credit under former Revenue and Taxation Code section 17052.2?
Credentialed teachers could qualify when they taught K-12-level education in the covered Youth Authority schools, Schools for the Deaf or Blind, qualifying state-hospital special-education programs,…
Are towing, winching, unlocking vehicles, changing tires, and jump starts subject to Kansas sales tax?
Mixed. The Department ruled that towing, winching, unlocking vehicles, and jump-starting them are not specifically enumerated taxable services, so they are not subject to Kansas sales tax (though…
Is the delivery charge for hauling dirt, sand, caliche, or rock taxable in Texas, and does it matter if the rock itself is taxed?
A delivery charge for hauling rock, sand, caliche, or dirt is taxable only if the material itself is taxable (and then only if the seller of the material bills the delivery); delivery of nontaxable…
What documents are covered by South Carolina's March 2001 advisory-opinion index?
It is a subject index of South Carolina advisory opinions and informational bulletins issued from 1987 through March 31, 2001, not substantive tax guidance.
What did South Carolina's March 2001 advisory-opinion citator cover?
It identified opinions believed affected by later advisory opinions through March 31, 2001, but did not account for changes from statutes, regulations, or court decisions.
Is a motor vehicle sold or leased in Kansas to an out-of-state resident subject to Kansas sales tax?
Exempt. The Department ruled that a motor vehicle (or semitrailer, pole trailer, or aircraft) sold or leased and delivered in Kansas to a bona fide resident of another state is not subject to Kansas…
Were a bank's disbursement request, credit-line agreement, guaranty, and unrecorded security agreement subject to documentary stamp tax?
Not by themselves. None of the four forms contained a signed, unconditional obligation to pay a sum certain, and none expressly incorporated the others. The unreviewed credit-line checks could be…
How does a Texas S corporation and its chain of Qualified Subchapter S Subsidiaries (QSSSs) compute taxable earned surplus, and can a parent exclude cash distributions from its subsidiary?
Each corporation reports its own earned surplus, and intercompany distributions can be excluded if the rule's requirements are met. For a Texas S corporation and its chain of Qualified Subchapter S…
Is interest a bank earns on Federal Funds held at a Texas-domiciled correspondent bank a Texas gross receipt for franchise-tax apportionment?
Yes, under the law as it stood. For franchise-tax reports due on or after January 1, 2000, interest a bank earns on Federal Funds held in a Texas-domiciled correspondent bank is apportioned based on…
In a sale-leaseback financing transaction, is the original purchase taxable, and is the leaseback to the lessee taxable?
The financing purchase is untaxed; the leaseback is taxed. The Department ruled that the described sale-leaseback is a financing transaction, so the lessor's original purchase of the steel trash…
Do contractors pay Kansas sales or use tax on the materials and supplies they buy for construction and repair work?
Yes - contractors are the taxable consumers. The Department ruled that under K.S.A. 79-3603b(l), Kansas sales tax applies to sales of materials and supplies to contractors, subcontractors, and…
Can a Kansas contractor buy materials tax-free for an out-of-state project under the temporary-storage exemption?
Only if bought out-of-state. The Department ruled that a contractor can claim the temporary-storage exemption under K.S.A. 79-3702(e) for materials used on an out-of-Kansas project only if the items…
Is a nonprofit genealogical society exempt from Kansas sales tax?
Not exempt. The Department ruled that a nonprofit genealogical society does not have a Kansas sales-tax exemption. Kansas exemptions are granted by specific statute - for example, the 1998…
Are membership and sign-up fees at a women's weight-loss fitness center taxable in Texas, even with no pools or classes?
Yes. Membership and sign-up fees at a fitness center — even a weight-loss-focused facility with only hydraulic resistance machines and no pool or classes — are taxable as amusement services under…
Was a new water-treatment system exempt machinery for a natural-gas electricity and steam generating facility?
Yes. The existing adjacent system proved insufficient, and the generating facility could not operate without properly treated water. The new water-treatment system was therefore necessary machinery…
Is providing ergonomic assessment and training, including a written report, subject to Kansas sales tax?
Not taxable. The Department ruled that providing ergonomic assessment and training is not subject to Kansas sales tax, and the written report delivered to clients as part of that nontaxable service…
Is adding fiber optic cable to an existing coaxial cable TV system taxed as new construction or as taxable repair/remodeling?
Adding fiber optic cable to an existing coaxial cable television system, from the head-end to a new node, is treated as nontaxable new construction — not taxable repair/remodeling — because it…
Do foreign visitors to Texas get a sales tax refund on items they bought and take home with them?
There's no general upfront sales tax exemption or pre-departure tax return for foreign visitors — a visitor pays Texas sales tax at purchase like anyone else, and can only seek a refund afterward…
Does a short-lived Delaware LLC that buys a Texas business's assets and liquidates the same day owe Texas franchise tax, and how is the seller's sale receipt sourced?
No franchise tax is due from the short-lived buyer. A Delaware LLC ('Buyer') was formed within two weeks of the deal solely to buy a Texas company's operating assets, then liquidate and distribute…
Is repairing semi trucks, heavy machinery, or overseas shipping containers taxable in Texas, and does having an ICC number change anything?
Having an ICC (interstate carrier) number doesn't change sales tax treatment. Labor to repair motor vehicles, heavy machinery, and commercial trucks is not taxable, but the materials used are…
When did temporary RPB 01-3 treat permitting a crime as an administrative offense against a beer-and-wine permit?
Only when the crime carried possible jail time and the permittee, agent, or employee was convicted did the conduct become that permit offense.
Could both a Tennessee county and a municipality impose the full business tax on the same business location?
Yes. Tennessee ruled that both the county and the municipality could levy the business tax at the maximum statutory rate, and the business had to pay the full tax to each. The Business Tax Act…
Can an auto body shop claim the Texas manufacturing exemption for equipment like a fire suppression system in its paint spray booth?
No. An automobile body shop that repairs or remodels customers' vehicles is not a "manufacturer" under Tax Code § 151.318, so it cannot claim the manufacturing exemption for equipment like an…
When I sell, install, or relocate bolted-down movable shelving systems, do I charge sales tax on the sale, and is my labor to disassemble/move/reassemble a system taxable?
Because these particular shelving systems are bolted down only for stability (not permanence), can be removed without substantial damage, and are commonly relocated when a business moves, the…
How did Florida tax installed monuments, funeral-related monuments, dealer materials, animal memorials, and out-of-state installers?
Customers were not charged sales tax on monuments installed at their chosen location or sold with funeral or burial services. Instead, the installer or service provider owed sales or use tax on the…
What South Carolina interest rate applied to tax underpayments and overpayments from April through June 2001?
The rate was 8% for April 1 through June 30, 2001, compounded daily except that simple interest applied to underpaid declarations of estimated tax.
Must a manufacturer accrue Kansas compensating use tax on free prescription-drug samples given to practitioners?
Exempt. The Department ruled that a manufacturer does not have to accrue Kansas compensating use tax on free samples of prescription drugs given to practitioners. Ordinarily, a company must accrue…
Can a 501(c)(3) foundation buy construction materials tax-free for a large educational building project that's funded partly by government bonds and partly by private donations?
Yes, but only through a specific mechanism, and not through the public education exemption. The state/public-education construction materials exemption under § 59-12-104(2) doesn't apply here —…
Did an out-of-state manufacturer create Florida corporate-income-tax nexus through inventory and a Florida affiliate's personnel?
Yes. The company stored inventory in Florida and used its Florida affiliate as agent for sales, order processing, billing, collections, demonstrations, training, complaints, and support. Those…
Does the Kansas manufacturing machinery and equipment exemption apply to a rail spur built from the main track to a plant?
Taxable - not exempt. The Department ruled that a rail spur running from the main track to a manufacturing plant does not qualify for the expanded manufacturing machinery and equipment exemption in…
Does an auto mechanic owe gross receipts tax on his repair work if he never understood the tax and his exemption certificate arrived too late?
Yes — the protest was DENIED. Gregory Hale, a master mechanic in Carlsbad, repaired used cars for Glen's Auto Sales as an independent contractor, billing for parts and labor. He did not understand…
Are a mobile home park's entrance fee and lot rental, plus manufactured home set-up costs and accessories like skirting, decks, and awnings, subject to Utah sales tax?
It splits into several separately analyzed pieces. The mobile home park's one-time entrance fee and any lot rental payments (prepaid or ongoing) are NOT subject to sales tax — they're charges for…
If a cabinet maker's invoice lists separate prices for different cabinets plus one installation charge, is that a taxable separated contract or an untaxed lump-sum contract?
An invoice for custom cabinets that lists a separate price for each type of cabinet (base, upper, vanities) plus one installation line is still treated as a lump-sum contract, not a taxable…
Were mandatory homeowner-association dues for community recreational facilities taxable admissions?
No. The dues were mandatory, paid to a qualifying homeowners' association as a condition of ownership or occupancy, and related to common recreational facilities in which owners held a property…
Could a nonprofit religious institution with an established place of worship make ordinary-course sales and leases without collecting Florida sales tax?
Yes. The Department had issued the organization a Consumer's Certificate of Exemption with kind code 55, confirming that it qualified as a religious institution with an established physical place of…
How did Florida tax manufactured buildings, trusses, and structural steel when the manufacturer sold them versus permanently installed them?
Sale-only contracts for factory-built buildings, trusses, and structural steel were taxable tangible-property sales. Under installation contracts, the manufacturer was the real-property contractor…
When are a computer-drafting firm's charges for electronic design files and printed hard copies subject to Utah sales tax?
Creating an electronic file from a client's ideas was a nontaxable service on the submitted facts. Printing was taxable when the hard copy was the customer's primary object or when printing was…
Does an out-of-state company create Utah income tax nexus just by sending traveling sales reps to solicit advertising, sign contracts, and collect deposits in Utah?
Yes. Sending sales representatives into Utah to solicit advertising, sign binding contracts, and secure deposits creates enough contact with Utah to trigger corporate franchise (income) tax nexus…
Is a boat storage facility's charge to store a boat taxable in Texas, and does it matter if the boat is on a trailer?
A charge to store a boat is not subject to Texas sales tax, regardless of whether the boat sits on a stand or on a trailer — but a charge to store a trailer alone, with no boat on it, is subject to…
Can a semiconductor manufacturer use dedicated electrical submeters, instead of a full predominant-use study of every piece of equipment, to claim the Texas manufacturing electricity exemption?
Yes, but with conditions. A semiconductor manufacturer can qualify for the Texas sales tax exemption on electricity based on predominant use measured by dedicated submeters — without listing the…
Could a growing affiliated group revoke its Florida consolidated-return election after major changes in market size and operations?
Yes. Although no adverse tax-law change was shown, the group's substantial expansion in market, operations, employees, and activity outside Florida made continued consolidation imprudent. Approval…
Are the overhead and profit charged on a construction job subject to Kansas sales tax?
Overhead and profit follow the labor. The Department ruled that when labor services are taxable in Kansas, the overhead and profit tied to that job are taxable too. Labor for the original…
Is the sale of firewood for residential heating subject to Kansas state and local sales tax?
Exempt from state tax, subject to local tax. The Department ruled that firewood and other residential heating fuels (propane, LP-gas, coal, wood) sold for noncommercial residential heat or lighting…
When a power plant buys electricity, can it buy it tax-free — for resale, or as electricity used to generate its own electricity?
Partly yes. A Connecticut power producer may buy electricity tax-free for RESALE when it resells that power to wholesalers and distributors (Conn. Gen. Stat. § 12-410). It may also buy electricity…
How these rulings are useful
- See how the rule applies: A letter ruling shows how a state revenue department actually applied the tax law to a specific business and set of facts.
- Plan with confidence: Find a ruling with facts close to yours before you charge, remit, or claim an exemption.
- Binding only on the requester: A ruling is binding on the department only for the taxpayer who asked. It is persuasive, not a substitute for your own ruling or professional advice.
- Research across states: Compare how different states treat the same issue, from SaaS and food exemptions to nexus and contractor purchases.