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 multi-level-marketing company let its mall-kiosk distributors buy tax-free with a resale certificate, the way a home-based distributor can't?
Yes -- distributors with a real retail outlet (a store or kiosk) can get their own sales tax permit and use a resale certificate, unlike home-based distributors. A multi-level-marketing company…
Does a corporation's section 1452(d) election to stay taxable under Article 9-A survive its purchase by a bank holding company and later mergers and business transfers into it?
Yes. A corporation (B) that made the section 1452(d) grandfather election to remain under Article 9-A keeps that election after a bank holding company buys all its stock and after the three proposed…
Could a changed multistate group end Florida consolidated filing, and how would its disregarded single-member LLC be treated?
Yes. Florida allowed separate returns from the 1997 year based on long-term changes in the group's business lines, subject to deferred-item, tax-difference, and reconsolidation conditions. A planned…
Is tangible personal property used to align a vehicle with a trailer, boat, or camper taxable in Kansas, and is there a safety-equipment exemption?
Yes. Under K.S.A. 79-3603(a), the retail sale of tangible personal property used to align a vehicle with a trailer, boat, or camper is subject to Kansas sales tax. The Kansas Sales Tax Act contains…
When were gypsum, soil sulphur, super phosphate, and sulfuric acid exempt as fertilizer or agricultural minerals?
Their sales were exempt when sold as fertilizer for land producing human food or products sold in the regular course of business.
Did Florida sales and gross receipts taxes apply to calls merely forwarded through Florida for customers outside the state?
No. The provider sold toll telephone service, but its calls were only bridged through Florida: no call began or ended there, and no charge went to a Florida number, device, telephone, or customer.…
What must a seller obtain to make tax-exempt sales of pianos, repair labor, and parts to a religious organization?
A seller making tax-exempt sales to a religious organization — including selling a piano, labor to repair and maintain pianos, and repair or replacement parts — must obtain a properly completed…
Is a Kansas sale exempt when the buyer's affiliated common carrier picks up the goods and hauls them out of state?
The sale is not subject to Kansas sales tax if it meets the conditions of K.A.R. 92-19-29. A manufacturer sold goods to Corporation A (a member of an affiliated group, not a common carrier), which…
Were equipment, improvements, computer systems, and replacement property installed in a RIIFC headquarters project exempt from Rhode Island sales and use tax?
Yes. Equipment and improvements, including replacements, were exempt when RIIFC acquired title or held a leasehold or license interest, the property was installed at the project, and RIIFC leased or…
Does Texas sales tax apply to a sale-leaseback financing of pipeline separators and meters that stay attached to an existing pipeline?
No -- because the separators and meters are attached to and part of a transmission pipeline that Texas treats as real property, the sale-leaseback of them is a real-property transaction, not a…
Could a closely held corporation avoid negligence penalty when its treasurer secretly failed to file and pay CRS taxes while telling the other officers everything was current?
No — the treasurer acted in a managerial capacity, so his negligent nonfiling and nonpayment were acts of Fluorescent Technology International itself, and the protest was DENIED. Treasurer John…
Did Florida documentary stamp tax apply when four equipment-lease documents did not expressly incorporate one another?
The original ruling said no. No single document created an unconditional obligation to pay a sum certain, and the four documents did not expressly incorporate one another, so Florida would not read…
How did a purchaser claim South Carolina's $300 maximum tax on self-propelled light construction equipment in 1998?
The purchaser completed Form ST-405 and gave it to the retailer. The form limited sales or use tax on qualifying sales or leases of self-propelled light construction equipment with compatible…
Could a counselor deduct services actually resold by a treatment center without obtaining that buyer's NTTC within New Mexico's 60-day audit deadline?
No — proof that Desert Hills resold Eileen Cahoon's counseling services did not replace the buyer's required NTTC, so the tax and interest stood; only the $98.50 penalty was abated. Section 7-9-48…
Does a Texas Water Control and Improvement District need a sales tax permit or number to buy things tax-free?
No -- a Water Control and Improvement District is exempt from Texas sales tax on its purchases as a political subdivision of the state, and it does not need a sales tax number to use an exemption…
Did Florida documentary stamp and nonrecurring intangible taxes apply to a warehouse-loan securitization and collateral assignments?
The original ruling found no tax on the out-of-state bonds and warehouse agreement, qualifying transfers of previously taxed loan obligations, or Florida collateral assignments covered by the…
Was Florida sales tax computed before or after a supermarket's loyalty-card discount funded partly by supplier allowances?
Tax applied after the loyalty-card discount. The supermarket controlled its supplier allowances and they were not reimbursements tied to specific current customer purchases, so the card reduction…
Could a nonresident exempt an unfinished boat purchase and also avoid tax on later Florida completion work?
The initial boat sale could be exempt if every nonresident-purchaser and timely-removal condition was met. But work performed after the buyer took title and possession was taxable because it arose…
Did a church have to collect Florida sales tax on property sold through fundraising for its own private school?
No. The church operated the not-for-profit school as an activity of the same corporate entity, and the fundraising sales supported the school's operation. Florida treated the school as included…
My underreporting was an honest blunder and I can't afford to pay more. Can the state forgive the penalty and interest on my back gross receipts tax?
No — interest is mandatory and the negligence penalty was upheld because sloppy records and a misunderstanding of the rules are negligence, even without any intent to cheat, so both protests were…
The state gave me 60 days to produce exemption certificates but assessed the tax before the 60 days ran out — right before the statute of limitations expired. Was that allowed?
Yes — the Department may issue an assessment before the 60-day certificate window closes (here, to beat the statute of limitations), and doing so does not strip the taxpayer of the right to still…
Can I buy a mattress tax-free in Texas just by getting a doctor's prescription for it?
No -- a doctor's prescription alone doesn't make a mattress tax-exempt; the mattress itself must be specifically designed to alleviate pain or treat a medical condition, not just an ordinary…
Could a seller rely on customers' Florida export exemption certificates without separately proving each shipment left the state?
Yes. Both customers held valid Florida export sales tax numbers and supplied compliant Purchaser's Blanket Resale and Exemption Certificates claiming purchases for export. Those certificates were…
Was a burglar-alarm installation a real-property improvement when the security company retained title until payment?
No. Although permanently affixed alarm systems normally could be real-property improvements, the security company retained title until payment. Florida therefore treated the contract as a taxable…
How did the former Texas throwback rules treat out-of-state delivery to a Texas buyer, independent solicitation, and foreign-country sales?
Delivery to another state was non-Texas unless throwback applied, and the buyer's Texas incorporation did not change that. Independent solicitation in the destination state created taxable-capital…
Were telemarketing, telephone support, and answering-service fees taxable as telecommunications in Florida?
No. The companies sold business services rather than local, toll, private, or other statutory telecommunications, so customer monthly fees were not subject to sales or gross receipts tax. The…
Did RR 98-17 allow state reimbursement for extra depreciation on manufacturers' machinery in joint industrial parks or fee-in-lieu arrangements?
Yes. RR 98-17 said machinery and equipment in a joint industrial or business park, or under a negotiated fee-in-lieu arrangement, qualified for state reimbursement tied to depreciation above 80 percent.
How did RR 98-16 apply South Carolina sales tax, admissions tax, and alcohol rules to nonprofit fundraising dinners, shows, festivals, and auctions?
Treatment depended on what attendees were paying for, whether a statutory nonprofit exemption applied, who made the sale, and whether alcohol was sold or provided for consideration. A genuine…
Under the now-superseded RR 98-15, how did coupons and discount cards change South Carolina's taxable sales price?
Tax was based on what the retailer received from the customer plus any reimbursement tied to that sale. Store-funded coupons and purchase-based supplier allowances reduced the taxable price;…
Could a South Carolina withholding agent follow the federal payroll-tax deposit schedule in 1998?
Yes. A resident or nonresident withholding agent with a federal withholding-deposit obligation could use either the South Carolina deposit due dates or the federal due dates, so deposits generally…
Can a company avoid Utah's private rail car property tax on a rail car it uses free of charge as a mobile safety-training classroom for emergency responders?
No. The Utah State Tax Commission ruled that a company's private rail car, used as a free mobile classroom to train emergency responders, is still subject to Utah's private rail car property tax.…
Is engineering and design work for a piping-system prototype a taxable sale of tangible personal property, or a nontaxable professional service, in Texas?
Nontaxable services -- the design, engineering, and management charges are not taxable, though the company still owes tax on the materials and equipment it uses to build the prototype itself. An…
Is HVAC remodeling work on a leased Texas airport terminal exempt from sales tax, and does it matter who pays for it or whether the space is used by the public?
It depends on who's paying and who benefits: HVAC remodeling work in areas the public actually uses for air travel is exempt as repair/remodeling of public-use property, but work benefiting only…
Were charges for value-added computer network management services subject to Florida sales or gross receipts tax as telecommunications?
No. The described data manipulation, transmission security, encryption, messaging, protocol conversion, bandwidth management, frame relay, network management, and customer support were not…
Were a New Mexico broker-dealer's mutual-fund dealer concessions and 12b-1 trail fees taxable even though receipts from selling securities were exempt?
Yes — both revenue streams were taxable gross receipts, so Rauscher, Pierce, Refnes's protest was DENIED. The mutual-fund shares themselves were exempt securities, but the dealer concessions were…
Could a school board make tax-exempt direct purchases for a project managed through a government agent and construction manager?
Yes. Even though a government management agent and construction manager coordinated the work, the school board was the actual purchaser because it approved and issued purchase orders, paid suppliers…
Could a Florida school board buy materials tax-free for a school construction project managed by a private contractor?
Yes, for purchases made under the binding direct-purchase program. The school board issued purchase orders carrying its exemption number, paid vendors directly, took title and liability at delivery,…
Which cardiac-surgery supplies and Foley catheter items were exempt as prosthetic devices, and were dressings, bandages, and hospital-record microfilming taxable?
The treatment was item-specific. Heart-lung bypass tubing, an oxygenator, arterial filter, pump/flow probe, IABP set, double-line set, and Foley catheter were exempt as prosthetic devices. A venous…
Could a corporation amend its 1994 franchise-tax report to claim the temporary credit for sales tax paid on qualifying manufacturing equipment?
Yes, assuming the equipment qualified and the corporation had a valid filing extension. An amended report claiming the temporary credit could be filed within four years of the report due date,…
Did a domestic nonprofit corporation have to file and pay Texas franchise tax before the Comptroller approved its exemption?
Yes. Nonprofit formation alone did not create franchise-tax exemption. Sections 171.001 and 171.051, with Rule 3.541, required a domestic nonprofit corporation to apply and provide evidence of…
May a subsidiary's unused investment tax credit carryover survive after its parent is bought by an unrelated corporation and the subsidiary is later merged into the acquirer?
Yes. When Miles bought all the stock of Diagnostics, the 'target corporation' under section 208.15 was Diagnostics, not its subsidiary Instruments -- so Instruments' unused investment tax credit…
Can a construction contractor buy materials tax-free using a customer's Direct Payment Permit?
No. A contractor must still pay sales tax on all materials it buys for repair or capital-improvement work, even when the customer holds a Direct Payment Permit -- the permit only excuses the…
Does New York sales tax apply when an artist sells or licenses a design rendering to an architect, interior designer, fashion house, or manufacturer?
It depends on what's actually transferred: selling an original rendering, or letting a client alter or keep it, is a taxable sale of tangible personal property, but temporarily loaning a rendering…
Are health club membership and initiation fees subject to New York State and City sales tax?
No. A fitness chain's membership and initiation fees are exempt from New York State and City sales tax because its members don't control the club's activities or management (so it isn't a taxable…
Does sales tax apply to a mobile-MRI company's tractor-trailers and to its imaging-equipment leases to hospitals?
The heavy tractor-trailer combinations that haul a company's mobile MRI units are exempt from sales tax under Tax Law § 1115(a)(26), but the MRI equipment installed on the trailer is not covered by…
Is a college-operated teaching hotel's room rent exempt from New York sales tax?
Yes. Room rent at a hotel operated by a tax-exempt college as part of its educational program is exempt from New York sales tax under Tax Law § 1116(c) as long as the hotel offers fewer than 100…
Does the exemption for promotional materials cover a grocery chain's blank membership/discount cards?
No. Blank plastic membership cards a grocery chain buys and then personalizes with a customer's name and magnetic ID strip don't qualify for the promotional-materials exemption, because they're used…
Can a New York fuel dealer import 'high sulfur diesel' from Canada and sell it for residential heating without New York fuel and sales taxes, and is any tax owed when it is imported?
No tax is due merely on importing the fuel; tax attaches at the first non-exempt sale or use in New York, and residential heating sales can be made exempt. The product — labeled 'high sulfur…
Could purchasing-card statements and software reports replace vendor invoices for Florida sales-and-use-tax records?
Sometimes. A consolidated card statement alone was insufficient, but the statement plus software reports could substitute for vendor invoices if they identified the buyer, seller, item, sales price,…
Does Utah require state income tax withholding from sick pay benefits when federal withholding is voluntary versus mandatory?
It tracks the federal rule. Utah does not require state withholding on third-party sick pay when federal withholding on it is only voluntary, but Utah does allow voluntary state withholding in that…
Are transportation charges taxable when billed as part of a taxable repair service, and when are they exempt?
It depends on the primary service. If a roustabout is performing a taxable repair service, all charges tied to it — including transportation charges, whether separately stated or lumped in — are…
What mineral severance tax exemptions and abandoned-well credit did Kansas add in 1998?
This 1998 legislative update summarizes new Kansas mineral (severance) tax exemptions effective July 1, 1998, plus a new income tax credit. Gas severed from a well whose average daily production has…
How are Kansas broadcasters, cable, and subscriber and satellite TV/radio services taxed after the 1998 exemption?
Effective July 1, 1998, Senate Bill 493 added a sales tax exemption for over-the-air, free-access radio and television stations, and this notice explains four related provisions. Subscriber radio…
As an independent distributor for a direct-sales company, am I responsible for Texas sales tax if the parent company isn't collecting it?
The direct sales company itself is legally responsible for collecting and remitting the tax -- but if it fails to do so, the distributor may still owe the tax and can pay it directly to the state.…
Would consolidating and renewing debt held by two U.S. agencies trigger Florida documentary stamp or nonrecurring intangible tax?
No, under the proposed terms. Assigning the notes and mortgages, consolidating them, and renewing the debt remained free of documentary stamp tax because principal did not increase and the obligor…
Did non-broadcast FCC licenses prevent television-production subsidiaries from seeking Florida's production-equipment tax refund?
No. The production subsidiaries' Industrial/Business radio and transmission licenses did not authorize public broadcasting, so those licenses did not place them within the statutory exclusion for…
How can researchers find South Carolina tax and alcoholic-beverage policy documents issued through June 30, 1998?
Use the attached index to find tax-related Revenue Rulings, Revenue Procedures, Private Letter Rulings, Technical Advice Memoranda, and Information Letters issued from 1987 through June 30, 1998.…
How should researchers use South Carolina's policy-document citator through June 30, 1998?
Use the citator to identify Department Revenue Rulings, Revenue Procedures, Private Letter Rulings, Technical Advice Memoranda, and Information Letters issued from 1987 through June 30, 1998 that…
Could a South Carolina beer-and-wine licensed premises permit legal video-game gambling after August 1, 1998?
No. Effective August 1, 1998, the Department treated all gambling and games of chance—legal or illegal—as prohibited on premises licensed to sell beer or wine, including gambling through authorized…
Are internet access fees and web hosting charges subject to Kansas sales tax?
No. Charges for internet access fees and web hosting are not currently subject to Kansas sales tax. But the provider is the consumer of what it buys to deliver that nontaxable service — it must pay…
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