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.
Did a single bulk sale of real, tangible, and intangible fossil assets qualify in full as a casual sale exempt from Rhode Island sales and use tax?
No blanket casual-sale treatment was available. One seller was a registered Rhode Island retailer, and the record did not identify which tangible assets it had held or used in activities requiring a…
Did Michael Beglau qualify as disabled for New Mexico's 1996 child day care credit while retraining for work that did not require heavy labor?
Yes — Beglau was disabled under Section 7-2-18.1(A)(4), so he and his wife were entitled to the $707 child day care credit and their protest was GRANTED. The Department argued that a person was…
Is sandblasting sand (or similar raw materials like rock, gravel, dirt) taxable when purchased, and does it matter whether the sand has been sorted, washed, or crushed?
Depends on whether the material is 'processed' -- and specifically, crushing or mixing is what triggers tax, not sorting or cleaning. This is a CORRECTED letter (the Comptroller's original August 7,…
How does Kansas tax a residential security company's monitoring fees, equipment, add-ons, installation, and repairs?
Monitoring is not taxed; the provider is the consumer of its gear. Because security monitoring is not an enumerated service under K.S.A. 79-3603, the residential provider does not charge tax on…
For a commercial security company, when is a system a taxable sale versus a non-taxable monitored service, and how is each taxed?
It depends on the contract. If a commercial customer buys the system outright, that sale is taxable and the monitoring fee is not (monitoring is not an enumerated service under K.S.A. 79-3603). If…
Are theatre membership fees subject to Kansas sales tax?
Taxable. Under K.S.A. 79-3603(n), Kansas taxes the gross receipts from dues charged by clubs, organizations, and businesses when payment entitles a member to use of facilities for recreation or…
Is a third-party restaurant delivery service's own delivery fee taxable, when the service isn't the seller of the food itself?
Not taxable -- because the delivery company isn't the seller of the food. This is a CORRECTED letter (the Comptroller withdrew an earlier August 11, 1998 response on the same question). A restaurant…
Which chemicals added to natural gas — odorants, dehydrating glycol, anticorrosion chemicals — are exempt from Kansas tax?
It depends on the chemical and the buyer. Odorants (capstan or thiophane) are an integral component of natural gas and are exempt no matter who buys them. Dehydrating chemicals like triethylene…
Does the $2,500 alternative-fuel income tax credit cap apply per vehicle or to all alternative-fueled motor vehicle property?
The cap applies per qualified property expenditure. It is the opinion of the Department that the $2,500 cap ($2,000 on or after January 1, 1999) under K.S.A. 79-32,201 limits the tax credit for each…
Were Berryman Ranch's receipts for nonexclusive hunting access deductible as a sale or lease of New Mexico real property?
No — the ranch sold taxable licenses to use real property, not a profit a prendre or a lease, so the protest was DENIED on the legal issue. Berryman charged three hunters $2,000 each per year for…
Did Texas motor vehicle rental tax apply to airport franchise fees, separately stated insurance, and collision damage waiver charges?
The assumed airport franchise fee was the rental company's expense and part of the taxable rental price. A separately stated true insurance charge was not taxed. But a collision damage waiver was…
Were lump-sum hospital housekeeping contracts taxable when one included cleaning workers and the other supplied only management?
The contract supplying both management and cleaning workers was taxable on its full lump-sum price. The management-only contract was exempt because the hospital's employees performed the cleaning…
Does a 501(c)(3) nonprofit automatically get a Kansas sales tax exemption on its purchases?
No. Kansas does not extend a general sales tax exemption to not-for-profit organizations, so a 501(c)(3) center is exempt only if it fits one of the specific exemptions listed in K.S.A. 79-3606. The…
Are internet charges to customers taxable in Kansas, and can an internet provider buy telephone lines for resale?
Internet charges to customers are not taxed, but the provider's telephone charges are. Because internet service is not enumerated in K.S.A. 79-3603, charges to customers for internet use are not…
Could Dain Rauscher obtain a retroactive extension after missing the deadline to protest New Mexico's failure to act on its tax-refund claim?
No — Section 7-1-24(B)'s extension authority applied only to protests of assessments and other peremptory notices or demands, not to protests involving a refund claim, so the late protest was…
Are labor services to repair residential pools and spas exempt from Kansas sales tax, and what about materials or shop repairs?
The on-site repair labor is exempt; materials and shop repairs are not. Under 1998 Senate Bill 493 (effective July 1, 1998), gross receipts from repair services on residential pools and spas are…
Is a mobile paper shredding and recycling service subject to Kansas sales tax?
No. A company that shreds and recycles paper at customer locations asked whether its service is taxable. The Department ruled that the service is essentially trash removal, and Kansas does not tax…
Is leasing hard-drive space on a computer system for storing voice and fax messages subject to Kansas sales tax?
No. A business that leases space on its computer system's hard drive — used by customers to store voice or fax messages that callers can access — asked whether the charge is taxable. The Department…
Under the original TAA 98A-068, when was electricity used at residential or transient-rental property exempt from Florida sales tax?
The original ruling exempted electricity only when it served a residential household with no commercial or other nonexempt use. It treated transient rentals as commercial use, made all electricity…
Does a catering business have to collect Kansas sales tax, and how is the tax sourced when food is delivered across state lines?
Yes. A catering business is a retailer that must collect Kansas retailers' sales tax on the total gross receipts from the food, meals, and drinks it caters. The tax is sourced to where the food and…
Is a church's telephone service exempt from Kansas sales tax, and how does the church claim the exemption?
A church's telephone service used exclusively for religious purposes is exempt from Kansas retailers' sales tax under K.S.A. 79-3606(aaa), which exempts purchases by a 501(c)(3) religious…
Which buyers of horse feed can purchase it exempt from Kansas sales tax, and which exemption certificate applies?
It depends on the buyer. Horse feed can be bought exempt from Kansas sales tax by a feed dealer buying for resale, a horse breeder that will sell the offspring, a livestock operator feeding horses…
Can a church buy its utilities free of Kansas sales tax, and what if the utility serves both exempt and taxable uses?
Yes, when used exclusively for religious purposes. Under K.S.A. 79-3606(aaa), a 501(c)(3) religious organization's purchases used exclusively for religious purposes — including utilities — can be…
Does a company owe Kansas sales tax when it only supervises subcontractors versus when its own employees perform the taxable labor?
It depends on who does the work. Where the company merely provides an employee to supervise taxable labor performed by subcontractors, it owes no Kansas sales tax on those receipts — the…
How does a Kansas religious organization claim its sales tax exemption, and does it cover fuel or out-of-state purchases?
A religious organization claims the exemption with a certificate, not an exemption number, by giving vendors a completed exemption certificate for qualifying purchases under K.S.A. 79-3606(aaa). The…
Is drug testing/screening (pre-employment, random, or post-accident) subject to Texas sales tax?
Depends entirely on the PURPOSE of the screening, not the type. Drug screening is NOT taxable unless it's performed for insurance-related purposes. Pre-employment and random drug screenings are NOT…
Did a passive Delaware corporation owe Texas franchise tax because it held a Texas certificate of authority and had a Texas mailing address?
Yes. The corporation's only asset was a limited-partnership interest, and it had no employees, operations, or tangible property. Even so, Section 171.001 taxed a corporation authorized to do…
If I list my Kansas house for sale, can the county appraiser use my asking price as the property's taxable value?
Not on its own. The Kansas Division of Property Valuation directs that a county appraiser 'shall not use the listing price of property as the sole criteria for determining the fair market value of…
Does an organization qualify as a Kansas 'religious organization' exempt from sales tax if it lacks an established place of worship?
No. To qualify for the Kansas religious-organization sales tax exemption under K.S.A. 79-3606(aaa), a group must gather in common membership for worship at an established place of worship it…
Could a person who was already a Texas resident and also a resident of another state claim Texas's new-resident vehicle tax?
No. Although a person could be a resident of more than one state for this tax, someone already resident in Texas was not eligible for the new-resident provision. The letter identified registering to…
Can a tribe get a Kansas exemption for its government center construction, and how should it proceed?
The request is premature. Rather than rule on whether the tribe's government center qualifies for the K.S.A. 79-3606(cc) exemption, the Department directed the tribe to apply for a project exemption…
Is a Texas-executed aircraft lease exempt from Texas sales tax when the lessee will fly the aircraft straight to Canada and operate it there as a commercial carrier, paying Canadian sales tax on entry?
Potentially exempt two different ways, but airworthiness/pilot paperwork alone doesn't prove it. An aircraft lease is executed in Texas; the lessee will fly the aircraft straight to Canada and…
Is a reclining chair with built-in massage and heating pads exempt from Texas sales tax when purchased with a doctor's prescription?
Exempt, but only with a proper prescription -- a standard recliner never qualifies. A reclining chair with built-in massage and heat pads qualifies as a therapeutic device and can be purchased…
Were separately billed country-club assessments used to repay golf-course renovation debt taxable admissions?
No. The assessments were nontaxable capital contributions because equity members paid them to retire debt from major golf-course improvements, they were separately billed and restricted to debt…
Were country-club membership contributions taxable admissions when members received preferred stock and a vested ownership interest?
No. The membership contributions were nontaxable capital contributions rather than taxable club dues or admission fees because members acquired a vested equitable ownership interest, including…
Are materials a contractor buys for a residential remodeling project subject to Kansas sales tax, and when is the tax due?
Yes. In Kansas a contractor is the final user of the materials it uses on a residential remodeling project, so those materials are subject to sales tax on their cost. A contractor pays the tax when…
Are sales made by or on behalf of a PTA or PTO exempt from Kansas sales tax, and does the exemption cover services?
Goods sold by or on behalf of a parent-teacher association or organization — such as wrapping paper or candy bars sold by schoolchildren for a PTA/PTO — are exempt from Kansas sales tax under K.S.A.…
Are a school's fundraising sales exempt when made on behalf of a parent-teacher association, and what about services?
Goods sold on behalf of a PTA/PTO are exempt; services and the school's own sales are not. Under K.S.A. 79-3606(yy), when a school sells tangible personal property — flowers, birdhouses,…
Can a cable/telecom subcontractor buy the cable and hardware it permanently installs inside customers' buildings (schools, apartments, offices) tax-free for resale, when the cable is billed as part of a taxable telecommunications/cable service rather than sold separately?
Depends on whether care, custody, and control of the cable transfers to the actual service customer -- a fact-specific, location-by-location test. A cable/telecom subcontractor installs fiber/coax…
Could an affiliated group stop filing Florida consolidated corporate income tax returns after federal tax-law changes?
Yes. Florida found good cause because federal changes to foreign-interest allocation and installment-sale treatment substantially worsened the group's consolidated result. Permission began with 1997…
When was a one-time country-club assessment for mortgage debt and improvements exempt from Florida admissions tax?
The assessment was exempt only to the extent it met six capital-assessment characteristics and funded capital improvements or repayment of related debt. Interest, loan costs, and legal fees directly…
How did Florida tax mandatory beach packages, optional golf packages, and condominium registrations sold with resort rentals?
The full lump-sum room-and-beach package was taxable as transient rent, and the manager also owed tax when buying the beach service. Separately sold golf packages were taxed both when bought and…
Does a 501(c)(3) endowment foundation that supports an educational institution qualify as an 'educational institution' for Kansas sales tax?
Yes. A 501(c)(3) foundation organized and operated exclusively to receive, hold, invest, and administer money and property as a permanent fund for the sole benefit of an educational institution…
Does the residential remodeling labor exemption apply to the full amount a contractor bills the customer, or only to the underlying labor cost?
The exemption covers the full amount billed to the customer, not just the underlying labor cost. Under 1998 Senate Bill 493, effective July 1, 1998, labor services to install or apply property for…
Is the retail sale of propane in 20-lb barbecue-grill tanks taxable in Kansas, and are the tank charges taxable too?
Yes. The retail sale of propane in 20-lb tanks — the kind used in outdoor barbecue grills — for residential use is subject to Kansas retailers' sales tax. The entire transaction is taxable,…
Is labor to repair hail damage subject to Kansas sales tax, and does it matter whether the building is a residence?
It depends on the building. Hail is not among the casualties (fire, flood, tornado, lightning, explosion, earthquake) whose repair labor Kansas exempts, so labor to repair hail damage to a building…
Does a nursing home count as a 'residence' for the Kansas sales tax exemption on residential construction and repair labor?
Yes. Under K.S.A. 79-3603(p), as amended by 1998 Senate Bill 493, installation or application labor services for the construction, reconstruction, restoration, remodeling, renovation, repair, or…
Does a nonprofit advocacy organization have to collect Kansas sales tax on the retail sales it makes?
Yes. A nonprofit advocacy organization that makes retail sales — here, selling items to raise awareness of the needs of children in Kansas — has no exemption from Kansas retailers' sales tax for…
On a farmer's irrigation invoice, which well-drilling services, equipment, and materials are exempt from Kansas sales tax and which are taxable?
It depends on the item. The service of drilling a new water well is exempt, and services to assemble farm irrigation equipment are also exempt; the movable irrigation parts — pivot system, pumps,…
If two organizations merge to form a new entity, does the new entity inherit the predecessor's Kansas sales tax exemption?
No. The taxpayer asked whether a new entity formed by merging a national center with its local counterpart would receive the same K.S.A. 79-3606 sales tax exemption the predecessor organization…
Does a yoga instructor have to register and collect Kansas sales tax?
No — teaching yoga by itself is not a taxable activity. If a person's only activity is teaching yoga, they are not required to register as a Kansas retailer. But if they also sell tangible personal…
Is the retail sale of non-titled equipment that may be moved on highways subject to Kansas sales tax?
Yes. A retail sale of non-titled equipment — equipment that may be moved on highways but is not titled — is subject to Kansas sales or compensating (use) tax.
How does a Kansas retailer source sales tax on shipped and interstate sales, and when are backhoe services taxable?
Retail sales of stationery and greeting cards are taxable tangible personal property. For shipments, the sale is sourced to the place of delivery: delivery to a Kansas address is a Kansas sale…
Is installing or repairing a hot tub or spa at a residence exempt from Kansas sales tax, and what about the materials?
The labor to install or repair a hot tub or spa that is or will become a permanent fixture to real property at a residence is exempt from Kansas sales tax under the residential remodeling exemption.…
A self-employed musician honestly didn't know he owed gross receipts tax and got the penalty waived. Does the state still have to charge him interest on the unpaid tax?
Yes — interest on unpaid gross receipts tax is mandatory and cannot be waived, even when the penalty is abated, so the protest was DENIED. Javier Padial played in a band at a Santa Fe hotel as an…
Did estimated, unbilled employee-leasing revenue recorded at year-end count as a January 1 taxable receivable?
No. The year-end estimate was not an account receivable because the company had not completed payroll processing, could not yet invoice under its contracts, and had no existing customer obligation…
Were resident social-membership fees exempt when homeowners paid a separate country club rather than their homeowners' association?
No. The governing documents did not clearly require every homeowner to hold the club's social membership, and the club was neither incorporated nor qualified in substance as a homeowners'…
Were mandatory social-club dues paid by homeowners exempt as homeowners' association assessments?
No. Although every homeowner had to join and pay social dues as a condition of ownership, the club was not a qualifying homeowners' association because it also admitted nonresident golf members with…
Did temporarily warehousing overseas-project equipment in Florida make it subject to Florida use tax?
No. Temporary Florida storage did not create use tax because the contractor irrevocably committed each purchase to a named foreign project, prohibited diversion, segregated and labeled the property…
How did RR 98-18 distinguish South Carolina sales and use tax from the Catawba tribal tax for Reservation transactions?
Sales on the Reservation generally used a special tribal sales tax equal to the otherwise-applicable state and local rate, while off-Reservation sales generally used state and local tax.…
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.