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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Can a company that manages and coordinates real property surveys for its customers buy the underlying surveying services tax-free for resale, and does it matter that the company itself isn't a licensed surveyor?
No, not to escape tax on resale — the total amount the company charges its customers for coordinating real property surveys is taxable, because it's buying and reselling a taxable real property…
Can a business get a refund of sales tax it paid when buying decontamination trailers and brush chippers that it now rents out to customers, and how does that differ from using the same equipment to provide a service?
Yes, if the equipment is genuinely rented to customers who get operational control (not used by you to perform a service) and doesn't carry a manufactured-home label. A decontamination trailer and a…
Were separately itemized pipeline charges for delivered natural gas taxable in Florida?
Yes. The out-of-state vendor sold both the gas and its delivery to the buyer's Florida city-gate point, where title passed. Florida treated the separately stated pipeline charge as part of the…
How did temporary RPB 00-1 guide South Carolina penalties for video-game-machine and coin-operated-device violations?
It recommended progressive sanctions for most offenses while allowing more or less severe penalties within statutory authority based on the facts.
Do donations tied to a purchase from the donor qualify for the Kansas community service contribution tax credit?
No — those transfers are not qualified contributions. The Department ruled that donations tied to a same-day purchase from the donor are not 'true' donations and do not earn the community service…
Does a Laryngeal Mask Airway (LMA) — a device inserted through the mouth to keep a patient's airway open during anesthesia — qualify for Texas's sales tax exemption for prosthetic devices?
Yes. The Laryngeal Mask Airway qualifies for exemption as a prosthetic device under Tex. Tax Code § 151.313, because it functions like an endotracheal tube — providing an unobstructed airway from…
Is a company that brokers advertising space on school buses — finding advertisers, arranging printing/installation, billing advertisers, and paying the school district a revenue share — required to charge sales tax on its charges to advertisers?
No, the broker's charge to advertisers is not subject to sales tax. But the broker must pay sales tax on all the supplies, materials, and equipment used to provide the service — including graphic…
Can a web design/Internet development company's consulting charges (client meetings, strategy discussion, marketing research) be sold tax-free and separately from its taxable HTML production and data entry work?
Yes, if the consulting is genuinely separable. Entering information and creating HTML documents are taxable data processing services, but expert/professional consultation (client meetings, strategy…
Are used auto parts bought from a junkyard subject to sales tax again when resold or incorporated into a repair, even though sales tax was already paid when the part was first sold as new?
Yes. Sales tax applies every time a taxable item is sold for consideration, regardless of whether it's new or used and regardless of whether tax was already paid on an earlier sale of the same item.…
When a company sells an item but hires an independent contractor to deliver and install it from the contractor's own inventory, who collects sales tax, and does the contractor owe use tax on the inventory it uses?
The company that made the retail sale to the customer remains the 'vendor' ultimately responsible for collecting and remitting Utah sales tax, even if an unrelated independent contractor actually…
Are personal and corporate concierge services — like picking up dry cleaning, planning parties, setting up tee times, ordering flowers, or getting car registrations — taxable in Texas?
Generally not taxable, if the concierge is only providing a transportation/delivery or planning service. Charges to plan parties, set up tee times, or get car registrations are not taxable. Picking…
Are anti-static grounding wristbands and anti-static floor mats/carpeting, used by circuit board manufacturing workers to prevent static electricity damage, exempt from Texas sales tax as manufacturing safety apparel?
Split answer. Grounded anti-static wristbands qualify for the safety apparel/work clothing exemption under Tex. Tax Code § 151.318(a)(9) because the circuit board manufacturing process couldn't…
Can someone buy an aircraft tax-free with a resale certificate if they plan to lease it to both a certificated carrier and, occasionally, private individuals?
Yes, buy the aircraft tax-free with a resale certificate. Leases to a certificated or licensed carrier of persons or property are tax-exempt under Tex. Tax Code § 151.328(a), if the carrier issues…
Is the labor to repair a manufacturing machine — like a threading machine directly used to manufacture products for sale — exempt from Texas sales tax the same way the machine itself is exempt?
Yes. Under Tex. Tax Code § 151.3111(a), a repair service on property that would itself be exempt because of its nature or use is exempt too — so the repair of a threading machine used directly in…
Did federal-agency propane vehicles need Florida alternative-fuel decals or pay the fuel tax?
No. Florida found the federal agency exempt from buying alternative-fuel decals and from the associated alternative-fuel tax because state and local government vehicles received the exemption and…
Were railcar lease charges under car service agreements exempt for a nonrailroad lessee?
Yes. Florida concluded that the statutory exclusion for charges under car service agreements applied regardless of whether the lessee was a railroad. The Department agreed that a rule continuing to…
Is individual house cleaning or maid service taxable in Texas, and does it matter whether you're an independent solo cleaner, a janitorial company, or hired by a builder for construction cleanup?
It depends on your business structure. A single individual cleaning private residences with no employees is treated as a household employee, not a taxable service provider. But a cleaning business…
Which eyewear and eye-care products are exempt from Texas sales tax when dispensed by an optometrist or ophthalmologist, and does the same exemption apply to opticians?
An eye doctor asked whether frames, lenses, and contact lenses sold in a new optical office are taxable. Under Tex. Tax Code § 151.313, corrective lenses and necessary related supplies dispensed or…
If a corporation has under $150,000 in gross receipts and owes no franchise tax, must it file the regular (long) form to keep using a business-loss carryover, and does a no-tax-due year still consume the loss?
A no-tax-due year still consumes the loss, and filing the long form is how you preserve or add to the carryover. A taxpayer with a business-loss carryover and under $150,000 in gross receipts…
Are software royalty payments exempt from Texas sales tax just because they're labeled a 'royalty' rather than a sale, lease, or license fee?
No, not automatically. Tax is due on the sale, lease, or licensing of software under Rule 3.308, and calling the charge a 'royalty' instead of a sale, lease, or license fee doesn't change that.…
Are enteral and parenteral feeding systems — nasogastric/gastrostomy tubes and related supplies — exempt from Texas sales tax as prosthetic devices, and what about the liquid food delivered through them?
Yes. Nasogastric and gastrointestinal (enteral and parenteral) feeding devices and their directly related supplies qualify as prosthetic device 'systems' under 34 TAC Rule 3.284, exempt whether or…
Is moving existing gas or telephone lines to accommodate a building addition treated as a taxable real property service, or as nontaxable relocation?
Not taxable. Moving gas lines and telephone lines to make room for an addition to an existing building is treated as a relocation of the lines, and relocating gas and telephone lines is not taxable.
Is a charge for an asbestos survey to determine whether asbestos is present in a building taxable in Texas?
Generally not taxable. A charge for an asbestos survey (to determine if asbestos is present) is not taxable unless it's performed for an insurance investigation or claim under 34 TAC Rule 3.355 — in…
Does the equipment that loads scrap metal into a shredder qualify for Texas's manufacturing exemption, or is it excluded as intraplant transportation equipment?
No, it doesn't qualify for the manufacturing exemption. A caterpillar material handler used to put scrap metal into a shredder is intraplant transportation equipment — moving product or raw material…
When a manufacturer bills a customer separately for the die (mold/tooling) used to make the customer's product, but keeps possession of the die itself, is that a taxable sale of the die?
It depends on whether there's a written agreement making the customer the actual owner of the die. With a written ownership agreement, the die charge is a taxable sale (unless the customer is a…
Now that the long-form requirement is gone, must a short-form filer still reduce its business-loss carryover, and does using the short form extend the loss carryforward period?
A short-form filer still must use its loss each year, and the short form does not extend the carryforward period. After the instruction requiring the long form to preserve a business-loss carryover…
Does acetone used to flush catalyzed resin out of fiberglass spray equipment (chopper guns) qualify for the sales tax manufacturing exemption?
Yes. A custom fiberglass manufacturer's acetone, used in a built-in flush system to purge catalyzed resins from spray-equipment lines and guns during the manufacturing process, qualifies for…
Did Sunshine Law coverage exempt the county-linked association from intangible property tax?
No. Being subject to Florida's Government in the Sunshine Law did not make the county-linked 501(c)(9) employee-benefit association a state political subdivision, municipality, or qualifying…
Did coverage by Florida's Sunshine Law exempt the association from intangible property tax?
No. Being subject to Florida's Government in the Sunshine Law did not make the 501(c)(9) employee-benefit association a state political subdivision, municipality, or qualifying charitable…
Does an interstate trucking company with no Utah office or employees, and its S-corporation parent, have Utah income or franchise tax nexus just from occasional pickups, deliveries, and pass-through mileage?
Yes to both. An interstate contract motor carrier has Utah nexus if it meets even ONE of four tests -- owning/leasing Utah property, making Utah pickups or deliveries, exceeding a mileage threshold,…
Does structuring a vehicle leasing company's vehicle purchases and sales as an IRC section 1031 like-kind exchange through a qualified intermediary change any Utah sales or use tax obligations?
No. Utah sales and use tax obligations on a vehicle leasing company's purchases, leases, and sales are unchanged by structuring the transactions as an IRC section 1031 like-kind exchange through a…
Which hearing-aid-related repairs, warranties, impression materials, equipment leases, maintenance items, and phone attachments qualified for Utah's sales-tax exemption?
Utah said the new exemption for hearing aids and hearing-aid accessories did not cover repairs, extended warranties, ear-impression materials, leased programming or testing equipment, lubricants,…
Were charges to install and maintain cable or fiber-optic lines on utility poles subject to Utah sales tax when the customer supplied the materials?
No, on the facts and assumptions in the ruling. Attaching customer-supplied wire or fiber-optic cable to utility poles was a nontaxable service involving real property. The Commission also treated…
Does an out-of-state debt collection company that only contacts Utah consumers by phone and mail -- with no employees or property in Utah -- owe Utah corporate franchise tax?
Yes -- but the Commission's reasoning turned on the company's own statement that it was "authorized to do business" in Utah (i.e., formally qualified there), not on an independent nexus analysis of…
Were an Internet seller's sales to overseas residents exempt from Utah sales tax when the goods were purchased in Utah and shipped outside the state?
Yes, if the seller was obligated to deliver the goods outside Utah and used a common carrier. The Commission said those transactions qualified as interstate or international commerce and were not…
Is a hotel's separate charge to trade show exhibitors for access to electrical power (outlets and extension cords) taxable, and can the hotel buy the electricity and cords tax-free for resale?
The charge to exhibitors for electrical outlets and extension cords is not subject to sales tax, because it's considered part of the booth or space rental (a real property lease), not a separate…
When a fire sprinkler contractor chemically cleans corroded pipe interiors and treats the water to stop further corrosion, is that taxable real property repair or nontaxable maintenance?
It depends on timing and whether the work is scheduled. Cleaning and treating pipe that has already been attacked by corrosion, done as a one-time or as-needed job, is taxable nonresidential real…
Do fast-wearing cutting tools like circular saw blades and drill bits used in a manufacturing operation qualify for the sales tax manufacturing exemption, even though they wear out quickly?
Yes. Circular saw blades and drill bits used in manufacturing qualify for the manufacturing exemption as long as they're used directly in the manufacturing process and cause a chemical or physical…
Are membership and initiation fees at Chelsea Piers' Sports Center -- with its pool, rock-climbing wall, running track, and boxing ring -- subject to New York's social/athletic club dues tax or New York City's separate gym/health-salon tax?
No, on both counts. Membership and initiation fees at the Sports Center are not taxable as social/athletic club dues under state law, because members have no control over the club's activities,…
Is a hazardous-waste landfill cleanup -- capping, grading, drainage systems, groundwater collection, and related construction -- a tax-exempt capital improvement to real property, and are the materials used in it exempt from sales tax?
Yes to both. The remediation work -- capping, grading, drainage and groundwater collection systems, and related permanent construction at a state-registered hazardous waste landfill -- meets all…
Can an out-of-state printing company accept a New York Resale Certificate (Form ST-120) from an out-of-state customer that isn't registered in New York, when the finished product is shipped directly to that customer's own customer in New York?
Yes. An out-of-state purchaser doesn't need to be registered with New York to use Form ST-120, Resale Certificate, in a drop-shipment transaction -- as long as it's registered to collect tax in…
Is a Manhattan sports club's membership fee subject to New York's social/athletic club dues tax, or to New York City's separate tax on gyms and health salons?
No, on both counts. The club's membership fees are not taxable as social/athletic club dues under state law, because members have no control over the club's activities, member selection, or…
Did about two employee-days in Florida create sales-tax nexus for the software seller?
No, under the facts and physical-presence law applied in 2000. The out-of-state software seller had no Florida property, inventory, office, resident employees, or agents; shipped by common carrier;…
After closing its Florida locations, did the out-of-state software seller owe three Florida taxes?
Under the facts and law applied in 2000, no. After closing its Florida stores and offices, ending in-state personnel and property, accepting orders outside Florida, and shipping canned software by…
How is income reported when a community service program tax credit is assigned (sold) to another taxpayer?
Both sides report income, under K.S.A. 79-32,197a. The Department ruled that when a nonprofit (assignor) sells a community service program tax credit, 'the amount received by the assignor' is…
Is labor to sell and install a car stereo system taxable, and does the answer change if the stereo is later repaired or if the installation involves remodeling the vehicle?
Yes, if you're both selling and installing the stereo — the installation labor is taxed along with the stereo as part of one sales price. If you're only installing a stereo the customer already…
If I sell my goods at a cooperative mall where the mall owner collects and remits the sales tax and sends me my proceeds, do I still need my own sales and use tax permit?
It depends on who's identified as the owner of the item before the sale. If you're identified as the owner before the sale, you're the seller and must have your own sales and use tax permit to…
Is a corporation subject to Article 9-A tax for the years it was active, and after it was dissolved by proclamation while merely holding property as nominee?
It is taxable for its active years but not after dissolution. The corporation (JN Parkville Inc/Corp) is subject to the Article 9-A franchise tax under section 209.1 for the taxable years it was…
Is a foreign corporation that holds New York real property for investment subject to the Article 9-A franchise tax?
Yes. A foreign corporation that owns real property in New York for investment purposes is owning property in the state within section 209.1 and 20 NYCRR 1-3.2(d), which subjects it to the Article…
When did Texas allow a motor vehicle tax refund after a manufacturer or distributor repurchased a defective vehicle?
The memo allowed a refund when a manufacturer or distributor repurchased a defective vehicle under the lemon law or comparable negotiated terms. The refund was limited to tax on the net amount…
Does custom-built trading software stay exempt from sales and use tax as 'custom software' after a corporate reorganization moves it into a separate subsidiary and licenses it back, and does giving customers free access to related front-end software trigger tax?
Yes, on every issue raised. Both the trade-execution algorithm software (built by a joint venture to the broker-dealer's specifications) and its own internally developed front-end trading software…
How does a company allocate receipts from leasing dark fiber-optic strands in the Article 9-A receipts factor?
Source them by fiber miles. For dark-fiber leases, fiber miles within New York equal the number of strands leased under a contract multiplied by the route miles located in New York. The New York…
If a doctor prescribes an in-ground swimming pool for physical therapy, is building it exempt from Texas sales tax the way a prescribed spa can be?
No. Even with a physician's prescription, an in-ground swimming pool doesn't qualify for the health care supplies/therapeutic device exemption because it's a permanent improvement to realty —…
Can a caterer/event planner buy specialty equipment (like tables, chairs, or a margarita machine) tax-free with a resale certificate if it plans to charge clients a separately stated rental fee for using that equipment?
No. A caterer must pay sales tax when it purchases equipment used to provide its food service, even if it separately bills clients a rental-style charge for using that equipment (tables, chairs,…
Are waste tire and antifreeze disposal fees charged with a tire sale or radiator service subject to Kansas sales tax, even if billed as a separate line item?
Yes, they're taxable. The Department ruled that waste tire and antifreeze disposal fees charged in connection with a tire sale or a radiator flush are part of the taxable selling price under K.S.A.…
Does paying an annual dividend to an investor in a For-Profit Zone Capital Corporation within 36 months trigger recapture of the zone capital credit?
No. An annual dividend paid out of current or accumulated earnings to an investor in a For-Profit Zone Capital Corporation, even within 36 months of the credit year, is not a redemption or…
Did mortgages securing contingent interest-rate swap obligations trigger Florida document taxes?
No. The swap required only a contingent net interest payment, advanced no principal, and left both the amount and identity of the eventual obligor uncertain. Florida treated the interest payment as…
Did the out-of-state securitization entities acquire a Florida commercial domicile?
No. The securitization corporations and trusts were organized and administered outside Florida, had no Florida officers or executive functions, made no business-course decisions in Florida, and kept…
Can the 2000 trustee-to-LLC documentary stamp ruling still be relied on?
No. The Department marks this ruling obsolete and directs readers to Crescent Miami Center, LLC v. Department of Revenue, 903 So. 2d 913 (Fla. 2005). Historically, the ruling treated the trustee's…
Were the agency's dealership mailer and event-personnel contracts subject to Florida sales tax?
The lump-sum advertising contract was taxable because the agency produced distributable flyers and promotional checks without separately stating the printing and mailing charges. The separate…
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