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.
Was a California-based website the retailer of goods advertised and sold between its users when it only provided listings and an automated offer platform?
No. On the assumed facts, the website sold a nontaxable service and was not the retailer because it never held the goods, transferred title, bound the parties, or held itself out as an auctioneer.
How was an aircraft's out-of-state time counted under Regulation 1620's six-month use-or-storage test?
All time outside California counted, whether the aircraft was flying, being repaired, waiting, taxiing, or stored. Location—not the activity label—controlled this test.
Was PediaSure exempt as a food product even though its label described it as a supplement for children?
Yes. PediaSure qualified as a complete dietary food for children ages 1 to 10, so its supplement labeling did not remove the food-product exemption.
Is a parent-teacher association exempt from Kansas sales and compensating tax on both its purchases and its sales?
Yes — a parent-teacher association is exempt under K.S.A. 79-3606(yy), so it neither pays Kansas sales or compensating (use) tax on what it buys and consumes nor collects tax on its sales of…
Which services purchased by a hotel — maintenance, landscaping, security, extermination, employment placement — are taxable in Kansas?
It depends on the service: building maintenance, landscape maintenance, and extermination services performed at a hotel are taxable, while furnishing security personnel and employment placement…
Is sales tax due on equipment (microscope, vials, droppers, bottles, forceps, and collection vessels) sold to farmers and ranchers for performing fecal egg counts to check livestock for parasites?
Mostly exempt. Under Sec. 151.316, farm/ranch equipment used exclusively on a farm or ranch in agricultural production is exempt -- so the microscope, cleaning supplies, slides, flotation solution,…
Can a retailer exempt a sale as an export at the time of the transaction because it ships directly to a customs broker, and how soon can it refund tax to a purchaser once a licensed customs broker certifies the goods were exported?
No, a retailer cannot exempt the sale at the time of the transaction -- proof of export must come first (either a pedimento de importaciones, which takes one to three weeks, or a stamped…
Did a NASA contractor owe Florida sales or use tax on GSA vehicles assigned solely for official NASA contract work?
No. The contractor received no ownership or lease interest and could use the GSA vehicles only for official NASA work, so the assignment and reimbursed payments did not create a taxable sale,…
Could a Florida health studio remit sales tax month by month as it collected installments under an annual membership agreement?
No. The agreement was a retail installment contract for future health-studio services, so the full tax was due when the membership agreement was entered into, as with a cash sale.
Can a Florida governmental entity buy construction materials tax-free for a public works project using a contractor's direct-purchase procedures?
Yes, if the government is the real purchaser: it must order, take title to, pay vendors for, and bear the risk of loss on the materials before they are incorporated into the project.
Should a Florida contractor collect sales tax from customers on installed structural cabling for telephone, computer, audio, or video systems?
No. Cabling installed behind walls, under floors, and above ceilings was treated as real property, so the contractor owed tax on its material cost rather than collecting tax on the contract price.
Was labor to replace a warranty-covered part on a bolted-down automotive lift subject to Florida sales tax?
Yes. Florida treated the automotive lift as taxable tangible personal property, not real property, and taxed the entire repair charge because the repairer furnished a replacement part even though…
Does an organization qualify as a religious organization for the Kansas sales tax exemption, and what if it includes lay people and businesses?
Yes for this organization — the Department found it is a religious organization, so its direct purchases used exclusively for religious purposes are exempt under K.S.A. 79-3606(aaa). A qualifying…
Would taking title to and possession of a newly purchased vessel in Rhode Island or its territorial waters create Rhode Island sales or use tax liability?
No. Rhode Island's boat exemption applied to the sale, storage, use, or consumption of a new or used boat. Under the proposed contract amendment, taking title to or possession of the vessel in Rhode…
Two aircraft were swapped in back-to-back sales a day apart -- Company A sold a Beechcraft King Air to Company B, and the next day Company B sold an IAI Westwind 1124 to Company A. Does the occasional sale exemption apply to these transactions, and does it matter that Company B holds an active Texas sales tax permit?
These are two separate transactions taxed on their own merits, not one combined deal. Company A's sale of the King Air may qualify as an exempt occasional sale under Sec. 151.304(b)(1) if Company A…
When Connecticut municipal-bond interest flows through a partnership 'Portfolio' and then a mutual fund to an individual, does it stay exempt from Connecticut income tax?
Yes -- the exemption survives the pass-through. Interest on Connecticut (and U.S.-territory) municipal bonds held by a partnership-classified 'Portfolio' keeps its character as Connecticut-bond…
How did coupons and discount cards affect South Carolina's taxable sales price under RR 99-9?
Tax applied to everything the retailer received from the customer and a manufacturer for the sale. A retailer-funded coupon reduced the taxable price, while a manufacturer-reimbursed coupon…
How did South Carolina's repealed motion-picture project and production-facility credits work under RR 99-10?
The repealed statute allowed a 33% credit for qualifying cash investment in a South Carolina film project, capped at $15,000 per project, and a separate 33% facility-investment credit capped at $5…
Were ethylene concentrate and generators used to ripen produce at warehouses exempt from South Carolina sales and use tax?
No. Ethylene concentrate sold for produce warehouses and generators bought for their use were taxable because the warehouses were distribution or storage facilities, not processing facilities. The…
Was XYZ Corporation's equipment sale-and-leaseback a taxable lease or a nontaxable financing arrangement?
It was a nontaxable financing arrangement, not a true sale and lease. The customer never gave up possession or ownership responsibilities, the payments followed a principal-and-interest schedule,…
Was an autobody repairer's charge to paint a new replacement part taxable when the part was used to repair a customer's vehicle?
No. The painting charge was nontaxable repair labor whether performed before or after installation, though paint materials remained taxable when separately charged.
What amount was subject to Texas motor vehicle sales tax when a lessor sold a vehicle retired from an operating lease to a retail buyer?
The taxable value was the amount the retail buyer paid the lessor-owner. A separate amount the lessee paid the lessor under the operating lease was not part of the retail sale and was excluded. Fair…
If a Texas corporation converts into a limited partnership, does it still owe Texas franchise tax, and does a federal check-the-box election matter?
The corporation must settle its franchise tax through the conversion, and after conversion the partnership is not subject to it. A Texas S corporation converting to a Texas limited partnership stays…
Could a Florida tenant subleasing an entire property stop paying sales tax to its landlord after providing a resale certificate?
Yes. Because the tenant subleased the entire property, it could provide a substantially compliant resale certificate, stop paying tax on the prime rent, and collect and remit tax on the subtenant's rent.
Could a Florida city buy construction materials tax-free for a fire-station project under a direct-purchase contract addendum?
Yes, after proper execution of the addendum, if the city ordered and paid vendors directly, took title and liability at delivery, and bore the risk of loss before installation.
Does a freelance photographer charge Kansas sales tax on mileage and telephone charges billed along with the photography fee?
Yes — a photographer is a retailer, so Kansas sales tax is due on the entire gross receipts for the services, including separately billed mileage and long-distance telephone charges. A freelance…
How does a corporation that is the general partner of a Texas limited partnership apportion its franchise tax, and are its out-of-state affiliated limited partners subject to the tax?
The out-of-state limited partners are not taxed, and the general partner apportions using either the net or an eligible gross method. An Ohio manufacturer was the general partner of a Texas limited…
How did Florida's intangible personal property tax apply to fund shares backed by federal debt and to life-insurance cash values?
Fund shares were exempt in proportion to the fund's U.S.-government obligations, and the cash values of both permanent and flexible-premium variable life policies were exempt.
Was a corporation's contribution of manufacturing assets to a new limited partnership subject to Tennessee sales and use tax?
Mostly no. The manufacturing-operation contribution was an exempt occasional and isolated sale, but any aircraft, vessels, or motor vehicles transferred were taxable. Qualifying industrial machinery…
Was a country club's monthly member assessment for clubhouse capital improvements subject to Florida admissions tax?
No, if it met seven stated characteristics of a true capital assessment, including separate billing and accounting, no dues reduction, and exclusive use for capital costs rather than operations.
Should a South Carolina property-tax question go to the Department of Revenue or the Comptroller General under the 1999 interagency agreement?
Generally, send property assessment and tax-calculation issues, assessor questions, motor-carrier tax, millage, assessment ratios, and most exemptions to the Department of Revenue. Send collection,…
Which charges under three computer-outsourcing agreements were subject to Florida sales tax?
Computer hardware, noncustom software, services that were part of acquiring those items, and warranties covering their maintenance or repair were taxable under the agreements reviewed.
Does a parent-teacher association collect Kansas sales tax when it sells admission tickets, and can it buy the tickets tax-free?
It splits two ways: a PTA's sales of tangible personal property are exempt, but selling admission tickets — a taxable service — to the final user is taxable, even though the PTA can buy the tickets…
Is a business that transcribes printed documents into Braille required to charge Kansas sales tax?
No — transcribing printed documents into Braille is a non-enumerated service that Kansas does not tax, so the provider does not charge sales tax (but pays tax on its own inputs). A proposed business…
Did Tennessee tax software and related consulting created from Tennessee but saved directly onto a customer's out-of-state computers?
No. Although software was treated as tangible personal property, each line was sent directly to and saved only on the customer's out-of-state computers, so title and possession passed outside…
A materials vendor sold fencing materials for a zoo exhibit to a construction contractor. The zoo's bid documents said the owner was tax-exempt and taxes should NOT be included in the contract price, but the contractor's purchase order listed 'Sales tax: Included' and told the vendor not to charge Texas sales tax because the contractor 'pays direct.' The contractor now wants to deduct that 'included' tax amount from what it owes the vendor, claiming the vendor collected it. Can the contractor do that?
Not just by pointing to the purchase order's 'Sales Tax: Included' language. The vendor's own invoice showed a price with no indication tax was included, and the vendor issued no tax receipt -- so…
When a mailing list broker charges for lists that mix Texas and out-of-state addresses, is the sale taxable based on the percentage of Texas names on the list, and does that change if the list is sold to an out-of-state customer?
Yes to the percentage test: under Rule 3.342(b)(3), the taxable portion of a mailing list sale is based on the percentage of names on the list located in Texas. But an information service (like a…
If a company reorganizes its Texas operations into a Texas limited partnership that elects under the federal 'check-the-box' rules to be taxed as a corporation and joins the company's consolidated federal tax return, does Texas's Intercorporate Services exemption cover services the company provides to that limited partnership?
Yes. A limited partnership or limited liability partnership that makes a check-the-box election under Treas. Reg. 301.7701-3 to be treated as a corporation, and reports its income as a C corporation…
Are pass-through charges a Competitive Local Exchange Carrier collects from customers -- municipal charges, expanded local calling service surcharges, number portability service charges, FCC-approved customer line charges, and federal presubscribed interexchange carrier charges -- subject to Texas sales tax?
Yes. Each of these pass-through charges becomes part of the sales price of the telecommunications service and is taxed the same way the underlying service itself is taxed, when passed through to the…
Does the Kansas sales tax exemption for restoring fire- or flood-damaged buildings depend on whether the cause was natural or man-made?
It depends on the peril, not the cause: fire-damage restoration labor is exempt however the fire started, but water damage is exempt only if it results from an actual 'flood' — a broken pipe or roof…
Was a festival operator's payment of 40% of ticket receipts to a Florida city taxable as a real-property license fee?
Yes. Because the contract did not assign a reasonable stated amount to the city's ticket-selling services, the full 40% payment was treated as taxable consideration for use of the festival site.
How did a corporation report the former Texas franchise tax after changing its accounting year-end from January 31 to December 31?
No additional filing was required solely because the corporation changed its year-end. For the 1999 report, taxable capital used the new December 31, 1998 year-end and January-December 1998 gross…
Did an electric parking brake, entry-assist handle, and quick-release steering device qualify a vehicle buyer with arthritis for Texas's disability exemption?
The electric parking brake qualified because the customer's arthritis prevented her from setting a manual brake and required the modification. The entry-assist handle and quick-release steering…
Is the dollar limit on the economic development zone capital credit applied separately to each corporation in a combined group, or once at the combined-group level?
Per corporation. The total economic development zone capital credit allowable to a taxpayer -- the $300,000 aggregate cap and the $100,000 per-category cap under sections 210.20(a), 1456(d)(1) and…
Did business contributions to expand a nonprofit day-care center qualify for the former Texas employee child-care franchise-tax credit?
No, not on the facts provided. The proposed donations would expand a center that was not shown to operate primarily for children of employees of the contributing corporations. A corporation could…
In an oil refinery's crude distillation unit -- where a furnace, distillation tower, and stripper each perform one step of separating petroleum into fractions -- is the whole crude unit treated as a single item of manufacturing equipment under House Bill 3211, and which pipes, pumps, and fittings qualify for the manufacturing exemption?
The crude unit as a whole is NOT a single item of manufacturing equipment -- H.B. 3211's Sec. 151.318(f) treats an integrated group of machines working together as separate items, so the furnace,…
Could a Florida school district buy construction materials tax-free under its school-building direct-purchase program?
Yes, if the district directly ordered and paid vendors, took title and liability at delivery, and bore the risk of loss before the materials were incorporated into the schools.
When were federal employee credit-card purchases exempt from South Carolina sales tax under RR 99-8?
A purchase was exempt when the federal government was directly billed or paid by government check. It was taxable when the employee was personally billed and later reimbursed, because the sale was…
What South Carolina tax relief did RP 99-2 provide to military personnel and spouses serving in Operation Allied Force?
Affected personnel and spouses received an extension for 1998 South Carolina individual-income-tax filing and payment until 180 days after leaving the combat zone, plus qualifying filing-season…
Were XYZ, Inc.'s sales of feed used for horses exempt from South Carolina sales and use tax?
Yes. The Department concluded that XYZ, Inc.'s sales of feed used for horses were exempt from South Carolina sales and use tax because horses are livestock. It advised obtaining and retaining a…
Is a pathology proficiency-testing subscription taxable in Kansas, and does the provider owe use tax on specimens shipped in from out of state?
No — the proficiency-testing service is a non-enumerated service that Kansas does not tax, and the test materials are incidental, so the provider is their consumer and owes no Kansas use tax on…
Does a convention and tourism committee that certifies a tax levy to a county qualify as an exempt political subdivision in Kansas?
Yes — a convention and tourism committee that certifies a tax levy to its county is a political subdivision under K.S.A. 79-3602(n), so it qualifies for the Kansas sales tax exemption and can issue…
Can a Kansas retailer close its sales tax registration once its supplier collects and remits the tax?
Yes — where the supplier now collects and remits the Kansas sales tax, it is appropriate for the retailer to close out its Kansas retailers' sales tax registration. The taxpayer bought food…
A city owns a golf course but hires an independent private company to operate it under a management agreement giving the company exclusive use and day-to-day control of the facility. Are the green fees the company charges golfers exempt from Texas sales tax as a municipal amusement service, or taxable?
Taxable. Golf courses are amusement services under Rule 3.298, and amusement services are exempt only when EXCLUSIVELY provided by a municipality (Sec. 151.3101(a)(1)). Because the city contracted…
A nonprofit college runs a federally mandated proficiency testing program for pathology laboratories, charging labs a single subscription fee that bundles the testing service with disposable test-specimen materials the college buys and ships in. Is the college's subscription fee a taxable sale of the specimen materials, or a nontaxable service charge -- and does the college owe Texas use tax on specimens it ships into Texas from out of state?
The subscription fee itself is not taxable: the 'true object' of the program is the testing/accreditation service, not a sale of the specimen materials, so the college (not the labs) is treated as…
How does a contractor owe Kansas state, local, and use tax on materials and supplies it buys in- and out-of-state?
A contractor pays Kansas state and local sales tax on materials bought from an in-state retailer (local tax sourced to the retailer's place of business), and Kansas compensating (use) tax on…
Could California issue a seller's permit to a five-year-old or another unemancipated minor?
No for this five-year-old applicant. The 1999 opinion said the Board would not issue a seller's permit to someone under 18 unless emancipated, because an unemancipated minor lacked the required…
Were two contractors' asset transfers to a new joint venture exempt when liabilities moved and their overlapping owners held different post-transfer interests?
Corporation A's transfer was exempt because 90 percent of ownership remained common; Corporation B's was taxable because only 70 percent remained common, below the 80-percent threshold. Each…
A member of an online buying club (SITE ONE) purchases distressed/discounted merchandise from manufacturers using membership access, then resells it. Is the club's membership fee taxable, and what are the member-reseller's own sales tax obligations on the merchandise it resells over the Internet?
The club's membership fee IS taxable -- SITE ONE is selling a taxable information service (price lists, manufacturer information) and should collect tax on the fee from Texas members (effective…
A seller of specialized instruments (thin film deposition monitors, gas analyzers, leak detectors, gauges, and optical measurement products used in semiconductor cleanrooms and other manufacturing) asked which of these items its manufacturer-customers can buy tax-free with a manufacturing exemption certificate.
It depends on how each item is actually used. Equipment used directly to make or cause a physical/chemical change in the product qualifies. So does equipment a manufacturer uses for quality control…
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.