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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Should the Tax Commission's Auditing Division simply accept a Utah State Historic Preservation Office (SHPO) certification (Form TC-40H) as sufficient proof that a residential rehabilitation project qualifies for the historic preservation income tax credit, rather than independently second-guessing whether the work really counts as qualifying rehabilitation, and what does the credit require to begin with?
Yes. The Tax Commission's Auditing Division should accept a signed, project-numbered Form TC-40H certification from the Utah State Historic Preservation Office (SHPO) as sufficient evidence that a pro…
What are Utah's rules for vendor registration, exemption certificate formats (including electronic/paperless certificates), and stale-dating of resale and exemption certificates?
Utah gave a detailed, question-by-question rundown of its exemption certificate policies for a company building certificate-automation software. Vendors must register (form TC-69) if they have Utah ne…
Does Utah sales tax apply to a commercial printer's charges for printing grocery store advertising inserts, including artwork/prepress services, when the inserts are distributed with newspapers versus delivered directly to stores?
Printing charges are generally taxable, including folding, cutting, and addressing, and a printer buying paper, ink, or resold prepress materials can do so tax-free as resale inputs (but owes tax itse…
New York Advisory Opinion TSB-A-96(4)S: Are a company's "stock watch" and "NOMINEX" services -- which identify a client's beneficial stockholders and monitor changes in stock ownership -- excluded from New York sales tax as personal/individual information not incorporated into reports for other clients?
Not taxable, under the personal/individual information exclusion. Kissel-Blake, Inc. offers two services to corporate clients trying to identify their own beneficial stockholders: the "stock watch ser…
New York Advisory Opinion TSB-A-96(3)S: Is a proxy solicitation firm's confidential "stock watch service," which identifies a client's individual shareholders and debtholders through investigative research, excluded from New York sales tax as personal information not shared with other clients?
Not taxable, under the personal/individual information exclusion -- the same result as the companion Kissel-Blake ruling issued the same day. Morrow & Co., Inc. provides proxy solicitation and stockho…
If a company owns the patents and formulas for its products but has a separate contract manufacturer physically make the product under the company's supervision, is the company itself considered the 'manufacturer' for Texas sales and use tax purposes?
Yes. Because the company developed the formulation process, supplies the manufacturing formulas and instructions, keeps its own manager/scientist on site during manufacturing and testing, and is respo…
Is labor to repair major appliances taxable, and does a laundry/dry cleaner that owns and rents out uniforms, mops, or linens qualify for the manufacturing exemption on its washers, dryers, and repair parts?
It depends on what's being repaired and how the appliance is used. Repair labor on tangible personal property (free-standing, plug-in appliances) is generally taxable, while repair labor on real prope…
Is a repossession company's charge to a bank or lender for repossessing a vehicle a taxable service, including when the bank calls off the repossession before the vehicle is picked up?
Yes. Repossession work done for a financial institution is a taxable "debt collection service" under Rule 3.354(a)(4). This applies whether the repossession is a voluntary turn-over the company picks …
Under Florida's 1996 intangible tax, how were receivables transferred by a Florida subsidiary to its out-of-state parent treated?
The out-of-state parent's receivables were taxable only to the extent the customers owing them were domiciled in Florida. The Florida subsidiary was not taxed on receivables transferred before January…
Were five open-end loan forms used by a Florida lender subject to documentary stamp tax?
No. As presented, none of the five forms contained all three required elements of a taxable written obligation: a written promise to pay, a sum certain in money, and the borrower's signature.
Is a hotel pay-per-view video service taxable in Utah, and if the video is delivered on a physical videocassette rather than by satellite or cable, does that change the answer?
It depends on how the video reaches the guest's room, and the Commission's position changed over the course of this ruling. A company that installs pay-per-view (PPV) video systems in hotels -- along …
I build railroad track and separately bill my customer for materials — can I take New Mexico's railway-roadbed materials deduction on the materials portion?
No. A contractor that reconstructs railroad track is selling a construction service, not materials, so it cannot take the Section 7-9-51.1 deduction for 'materials necessary for the construction or re…
When a company does lump-sum interior refurbishing, avionics upgrades, or performance modifications on a customer's private aircraft, is that taxable repair/remodeling labor, or nontaxable processing/manufacturing labor — and does it matter that the work is done on an unfinished ('green') aircraft versus one already in service?
Interior refurbishing and performance-altering modifications performed on an already-completed customer aircraft are repair or remodeling, not processing — and Texas law specifically excludes repair, …
Is the labor to repair refinery/chemical plant processing equipment taxable, and is the labor to repair railroad track taxable, given that the equipment and track were exempt as manufacturing equipment or rolling stock when first purchased?
It depends on whether the item is still personal property or has become part of the realty. If refinery/plant manufacturing equipment still retains its character as tangible personal property, repair …
Could an exempt Florida church buy a laminated truss roof system directly from a subcontractor without paying sales tax?
Yes. The church's direct purchase was exempt because it held an exemption certificate, issued its own purchase order, paid the subcontractor directly, took title at delivery, and removed the materials…
Was Florida sales tax due when an insurance company paid an equipment lessor for a loader-backhoe stolen from its lessee?
No. The insurer's payment to the lessor for the stolen loader-backhoe satisfied a claim against the customer; it was not consideration for a sale under Florida's statutory definition.
Is the computer hardware and software a company uses to draw its own blueprints for fabricating food processing equipment exempt from Texas sales tax as manufacturing equipment?
No. Preparing blueprint drawings happens before the first stage of production, so the computers and software used to create those blueprints do not qualify as exempt manufacturing equipment under Rule…
For the affiliate that actually holds New York City IDA industrial development bonds, are the bonds (1) investment capital under section 208.5, (2) producing investment income under section 208.6, and (3) governmental securities for the Article 9-A investment allocation percentage?
Yes to all three. Smith Barney Holdings is the wholly-owned subsidiary that actually holds the New York City IDA bonds issued for the Travelers TGI Project. As in the companion opinion to its parent, …
New York Advisory Opinion TSB-A-96(2)S: Is the fee a business pays Pitney Bowes to have its rented "Postage by Phone" meter reset by telephone subject to New York sales tax?
Taxable. Grace Borgenicht Gallery, Inc. rents a "Postage by Phone" meter from Pitney Bowes, a system that eliminates the need to have the meter reset in person at the Post Office. Instead, Petitioner …
Which livestock-care, garden, and wild-bird products sold by a Florida retail feed store were exempt from sales tax?
Specified livestock medicines and supplements and qualifying seeds, fertilizers, and pesticides were exempt, with purchaser certificates required for several farm or garden uses. Wild-bird feed, seed,…
Are New York City IDA industrial development bonds (1) investment capital under section 208.5, (2) generating investment income under section 208.6, and (3) governmental securities for the Article 9-A investment allocation percentage?
Yes to all three. New York City Industrial Development Agency bonds -- the IDA being a governmental instrumentality (a public benefit corporation under Article 18-A of the General Municipal Law) -- ar…
Under Florida's 1996 intangible tax, what happened when a Florida individual resigned as trustee and transferred all trust control to a foreign corporate trustee?
Neither the trust nor the individual's interest was taxable after the individual resigned as trustee and delegated all management and control to a foreign corporate trustee. The result required the fo…
Under Florida's 1996 intangible tax, were an irrevocable trust and its income beneficiary taxable when no Florida-situs person could serve as trustee?
No. The trust was not taxable because its trustee and management did not create Florida situs, and the taxpayer's income interest was not a taxable beneficial interest because the taxpayer could not r…
Under Florida's 1996 intangible tax, were receivables contributed before January 1 to an out-of-state partnership taxable?
No. The out-of-state partnership's January 1 receivables were not taxable when it had no Florida connection beyond debtors, and the Florida partnership's ownership interest was exempt. Routine servici…
Was Florida documentary stamp tax due when articles of merger were recorded to show an LLC's succession to Florida real estate without a deed?
No. Florida imposed no documentary stamp tax when the real property passed to the surviving LLC by operation of the merger statute and only the articles of merger were recorded. If a deed were given, …
Were customer-modified vacation packages sold for one unitemized price subject to Florida sales tax?
No. A modified package remained untaxed when it contained multiple components sold for one unitemized price, the seller paid tax on all taxable components, and related-party components were bought at …
Could a Florida amusement-machine owner assume the location owner's tax and certificate duties by written agreement while remaining the machine lessor?
Yes. A written agreement could shift responsibility for machine-receipt tax and the amusement-machine certificate to the machine owner while preserving its lessor status. The owner also owed rental ta…
My extra tax only got pinned down years later after the IRS adjusted my return — does interest really run all the way back to the original due date?
Yes. Interest on unpaid New Mexico income tax runs from the original due date of that tax — not from when a federal adjustment is finalized or an amended return is filed. Donald Duszynski, a New Mexic…
Is cleaning debris out of an existing farm irrigation ditch or canal every fall and spring taxable as nonresidential repair/restoration, or is it exempt agricultural maintenance?
Taxable. Cleaning debris out of an existing irrigation canal restores it to as near its original working order as possible, which is nonresidential restoration under Rule 3.357 — not exempt maintenanc…
What was the January 1996 internal memo about a special postcard mailing to Texas taxpayers who had a local sales tax rate change in 1995?
This is NOT a taxpayer-specific letter ruling — it's an internal Comptroller staff memo (with the attached postcard text) explaining that 610 sales-tax yearly filers in specific jurisdictions (the cit…
When are missing-person investigative services subject to Florida sales tax, and is a separate monthly administration fee taxable?
Investigative charges were not taxable when the purchaser's primary benefit was outside Florida, but charges to Florida customers were taxable even if the investigation occurred elsewhere. A separate …
A wholesale floor covering distributor asks: is sales/use tax due when it buys carpet samples for its own showrooms, when it later resells those used samples to dealer customers at a discount, when its salespeople swap out a dealer's sample display for free, and can it get a tax refund when it has to discard samples that go out of style?
Tax is due when the distributor first buys the carpet samples, because it uses them in its own showrooms. When those used samples are later resold to a dealer, a resale certificate can be taken instea…
Can a cellular telephone company buy 'positive validation' (fraud-prevention/roamer-validation) services tax-free with a resale certificate, on the theory that the cost is passed through to customers on their cellular bill?
No. The Comptroller ruled that positive validation service is not an integral part of the cellular service sold to customers, so the cellular company cannot purchase it tax-free for resale — regardles…
Under Florida's 1996 intangible tax, what happened when Florida companies transferred receivables to an out-of-state partnership before January 1?
The Florida companies owed intangible tax on the receivables only until they transferred them. The out-of-state partnership had no Florida taxable situs, and the companies had no tax liability on thei…
Does Florida tax a seller's out-of-state purchase of coupon-certificate books or the later sale of those books to consumers?
The seller owed Florida use tax on certificate books bought from an out-of-state printer because it was the ultimate consumer. Its sale of the books to customers was not taxable because they represent…
Must a Florida sign company collect sales tax on both materials and labor when its contract treats installed signs as tangible personal property?
Yes. Because the binding contract kept each sign severable and treated it as tangible personal property until the buyer paid in full, the company had to collect tax on the total sales price, including…
Should a fire-alarm contractor charge Florida sales tax on an itemized life-safety system upgrade and its installation?
Yes, but only on the itemized materials. The contractor had to collect tax because the invoices separately itemized the materials and title passed before installation; separately stated installation c…
Did RR 96-3 impose South Carolina sales or use tax when software was delivered entirely by modem and telephone line with no physical media?
No. Software delivered entirely by modem and telephone line, with no diskette, tape, or other physical copy, was intangible software rather than taxable tangible personal property. The transmission sy…
Is the sale of electronic tokens/credits used to play phone-based casino-style games taxable in Texas, when winning tokens also enter callers into a weekly raffle drawing?
Yes. The Comptroller determined that selling the tokens/credits is taxable as an amusement, regardless of the raffle mechanic layered on top. The letter also flags that raffles are generally not legal…
Is a nutritional drink taxable in Texas, or exempt like a food product or meal replacement?
Taxable, as of this 1996 letter. The Comptroller advised that products marketed as a replacement or substitute for a meal (such as Slim Fast and Ultra Slim Fast) are treated as food products and are e…
Were separately stated promotional fees for restaurant trademark and trade-name rights taxable as commercial rent in Florida?
No. The separately stated promotional fees paid for trademark, trade-name, and logo rights rather than the use of real property, and the leases reasonably allocated those nontaxable fees from taxable …
As of the mid-1990s, did Utah use tax apply to mail-order and early online purchases, and how did Utah tax software, newspapers, and other products delivered electronically?
As of this January 1996 opinion: Utah use tax is owed by a Utah purchaser whenever tangible personal property is bought for use in Utah and sales tax wasn't charged, but the out-of-state vendor only h…
Does producing an animated television commercial using computer graphics qualify for Texas's motion picture exemption, and does the computer/software used to make the master tape qualify for the manufacturing exemption?
Yes to both, with limits. Using computer graphics to produce a master video tape that will be sold, broadcast, or distributed qualifies for the motion picture exemption (Rule 3.350). The computer and …
Can an apartment complex give a utility company a residential-use exemption certificate for gas/electricity without first getting a formal utility (predominant use) study done?
Yes, for apartment complexes matching the studied pattern (meters that mix small commercial use, like the manager's office, with residential common-area use, like club rooms, laundry rooms, pool pumps…
Does the section 189.6 exemption from the gas-importer tax apply where the same entity both owns/operates the qualifying co-generation facility and is itself the thermal energy host?
Yes. Buffalo Paperboard owns and operates a co-generation 'qualifying facility' (under section 201 of the federal Public Utility Regulatory Policies Act of 1978) at its Lockport plant and uses the ele…
New York Advisory Opinion TSB-A-96(1)S: Is a therapeutic powered air mattress system for bedsore-prone patients exempt from New York sales tax as medical equipment, when sold or leased to individual patients versus to hospitals and nursing homes?
Exempt medical equipment -- but with an important carve-out for sales to medical-service providers. Pegasus Airwave Inc. makes a powered air mattress system, fitted into a standard hospital bed or a p…
How did superseded RR 96-2 classify amusement machines, video games, free-play devices, and game tables for South Carolina license tax?
RR 96-2 assigned historical Type I, II, or III licenses based on the device's function, payment slot, video display, and free-play feature, while specified for-profit physical game tables followed the…
Did RR 96-1 continue the full disability-retirement income exclusion after benefits converted to a regular retirement plan?
No. Once benefits changed from a disability retirement plan to a regular retirement plan—whether the change was mandatory or optional—the full disability-retirement exclusion no longer applied. The re…
Does an out-of-state company owe Utah sales tax on discount memberships it sells, on catalog/drop-shipped products, and does using independent contractors in Utah create nexus?
It depends on the structure. Selling a bare discount membership — where the member later buys goods or services at a discount from a separate, unrelated retailer who collects its own sales tax — is no…
Does an air compressor used exclusively to power an abrasive blasting system that prepares steel surfaces for coating qualify for the Texas manufacturing sales tax exemption?
Yes. The Comptroller ruled that the air compressor qualifies for the manufacturing exemption because it is used exclusively to propel the blast media that prepares steel surfaces for coating — equipme…
Does Utah sales tax apply to a heli-skiing operator's helicopter transportation, backcountry ski-guide services, and included meals?
Yes to both main components. Intrastate helicopter passenger transportation is taxable, because federal law only limits state taxation of interstate passenger transportation (not intrastate air servic…
Does a maid who cleans houses need to collect Texas sales tax on her charges, and does the new small-business exemption for lawn care/landscaping apply to housecleaning?
No to both, with a distinction: the July 1, 1995 small-business exemption for self-employed lawn care/landscaping workers earning $5,000 or less does NOT extend to housecleaning services, because that…
Is a company that isn't a joint venturer with a theater/performance operator still liable for sales tax on admissions as a "provider" of taxable amusement services?
The Comptroller found that, based on the one contract reviewed, Operating Company is not a joint venturer with Company A — but that doesn't settle the matter, because Operating Company may still be a …
The Department sat on my protest for two years while interest piled up — can I at least get that interest reduced?
No. LEICA, Inc. was assessed New Mexico tax after a 1992 Multistate Tax Commission sales-tax audit: Assessment No. 1651584, for $13,793.38 in tax, $5,312.09 in interest, and $1,381.95 penalty. The com…
I paid my gross receipts taxes just one day late — why am I charged a whole month of interest and a penalty?
Because New Mexico interest is charged by the month 'or any fraction thereof,' so even a single day past due triggers a full month — and no law lets it be abated. Davis and Associates, Inc., a New Mex…
Is a Texas manufacturer's sale of etchant — a chemical used to etch unwanted copper off printed circuit boards — subject to sales tax, given that none of the etchant ends up in the finished circuit board and the spent etchant is bought back by the seller for recycling?
The sale of the etchant is a taxable sale of tangible personal property, but the purchaser (a circuit-board manufacturer) can buy it tax-free with a resale/exemption certificate, because the etchant i…
Is the construction of a special, secured room inside an existing building — built to protect a customer's inventory and equipment during manufacturing — exempt from Texas sales tax as either a manufacturing exemption or new construction?
No. The Comptroller ruled that building a special security room within an existing building — even though it was a specific contract condition needed to protect a customer's manufacturing inventory an…
What tax-collection and title-filing duties did Texas impose on licensed vehicle dealers beginning January 1, 1996?
Licensed dealers had to collect motor vehicle sales tax on all taxable sales, including cash sales, and remit it to a county tax assessor-collector within 20 county working days. They also had to comp…
A mail order company plans to set up two subsidiary corporations and a limited partnership that will operate in Texas, buying goods for resale to the mail order company, which then ships items to Texas customers; the mail order company will also periodically send a handful of employees into Texas to train and check on the limited partnership's staff. Does any of this create Texas sales/use tax and franchise tax nexus for the mail order company, and does the limited partnership have to collect sales tax on sales to the mail order company or its customers?
Yes, the mail order company has nexus. Sending its own employees into Texas on a recurring basis (initial training plus periodic quarterly/semi-annual site visits) to train and review the limited part…
Is a New York corporation subject to Article 9-A franchise tax after it discontinued all active business and was later dissolved by proclamation, when it merely holds record title to real property as nominee for others?
Two periods. For the years it was incorporated -- from 1963 until it was dissolved by proclamation on September 29, 1982 -- the corporation is subject to the Article 9-A franchise tax under section 20…
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