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.
When must a Kansas employer file the annual withholding tax return (Form KW-3), and how are the KW-5 deposit reports completed?
Every currently registered Kansas employer must file the Kansas Employer's Annual Withholding Tax Return (Form KW-3) by the last day of February of the year following the taxable year, filed…
Can an auto-detailer skip gross receipts tax on work done for car dealers by using resale certificates, and was its shop worker an employee for withholding?
The protest was denied on both counts. An auto-detailing shop couldn't deduct its receipts from detailing dealers' cars using resale-of-service certificates, because that deduction requires the…
Is a mobile chapel taxed as a mobile office or as a motor vehicle, and how does a church claim a sales tax exemption on it?
A mobile chapel meets the definition of a mobile office, not a motor vehicle, so it is taxed under the limited sales tax statute rather than motor vehicle tax. An exempt entity, like a qualifying…
Is wrapping/packaging material taxable when a retailer (not a manufacturer) buys it, and is sales tax due on prepaid telephone calling cards?
Both are taxable to the retailer. Tissue paper used to wrap items for sale and clear video cases are taxable purchases for a retailer — only manufacturers may claim the wrapping-and-packaging…
When an S corporation acquires a Texas limited partnership through general-partner and limited-partner LLCs, which entities owe Texas franchise tax?
Only the LLC acting as general partner owes franchise tax; the controlling S corporation and the limited-partner LLC do not. A Delaware S corporation planned to acquire a Texas mining limited…
Was a mortgage-assumption agreement subject to Florida documentary stamp tax when executed and delivered outside Florida and never recorded in the state?
No. The unrecorded assumption agreement executed and delivered outside Florida was not taxed under section 201.08, and a later default or foreclosure would not make it taxable.
Is the federal excise tax part of the Kansas sales tax base on retail sales and leases?
The Department directs that the federal excise tax imposed under Internal Revenue Code Section 4001 et seq. on the sale of passenger vehicles, heavy trucks and trailers, boats, aircraft, jewelry,…
Did claiming a federal research-and-development credit by itself prove taxable use of tangible personal property?
No. The credit could rest entirely on wages or other qualifying expenditures that did not require use of tangible property, unlike depreciation or a property-based investment credit.
Could an independent Texas dealer buy a new vehicle tax-free for resale and use a resale vehicle as a trade-in?
No. The letter said only a dealer authorized for that make could acquire the new vehicle tax-free for resale. An independent dealer owed tax on the new vehicle, and trading a used vehicle acquired…
When a Texas software company licenses a computer program and does custom programming, is out-of-state delivery exempt, and when is software consulting taxable?
A software license and related customization services delivered to a customer IN Texas are taxable, but the same software (including upgrades) shipped by the seller to a point OUTSIDE Texas is…
Is an insurance agent fee charged under Texas Insurance Code Article 21.35B subject to Texas sales tax?
No. An agent fee authorized under Texas Insurance Code Article 21.35B — charged in connection with an insurance application or policy issuance, and not in lieu of a commission — is not subject to…
Is a fee for producing a microwave path feasibility analysis report subject to Texas sales tax?
No. Charges for producing microwave path feasibility analysis reports — compiled from personal observation, computer tabulations, terrain profiles, mathematical data, CAD depictions, color photos,…
How were dividends and interest, including income from federal obligations, treated under the former Texas franchise-tax components?
Taxable capital included dividends and interest, even federally tax-exempt interest, in surplus and everywhere receipts; Texas receipts depended on the payor's legal domicile. Earned surplus…
Does natural gas used to maintain a pilot light on a chemical plant's flare stack qualify for the Texas manufacturing exemption, and is a predominant-use study needed?
Yes, the gas qualifies for the manufacturing exemption from sales tax. Because the gas runs through its own meter and is used only to maintain the flare stack's pilot light, no predominant-use study…
Would transferring title to an art collection or extending its loan to an educational institution end Florida's works-of-art sales and use tax exemption?
No. Title could pass to the university foundation and the loan could be extended without tax, but the exemption continued only while the collection remained under a qualifying educational-institution loan.
When is Kansas personal property tax due on a motor vehicle that was purchased in — or brought in from — another state?
It depends on whether the owner can prove the vehicle was kept (stored, garaged, or operated) outside Kansas. This 1997 joint memo from the Division of Vehicles and Property Valuation Division tells…
Was a preprinted $1.50 mail-order insurance charge taxable when customers could cross it out and still receive their merchandise?
Yes for customers who paid it believing it was required. The form had to clearly say the charge was optional and could be crossed out to make it truly optional.
Are shipping/handling charges and membership fees a direct-sales (multi-level marketing) company charges its independent distributors subject to Texas sales tax?
It depends on what's included. Shipping and handling charges for items sold to independent distributors for resale at the suggested retail price are not separately taxed (the cost is already baked…
Does an oilfield waste bioremediation company owe sales tax on the treating agents, chemicals, and equipment it uses, and does it need to charge its clients sales tax?
The company does not charge its clients sales tax on the bioremediation service itself, and doesn't need a sales tax permit as a nontaxable-service provider. But the company must pay sales or use…
What taxable value applied when a Texas lessee exercised an operating-lease purchase option?
The taxable value was the amount the lessee paid the lessor—$5,000 in the example—regardless of market value. A later resale for a different amount did not change the buyout tax, and a lessor…
Was gain from selling subsidiary stock to an Ohio corporation a Texas receipt for former taxable-capital apportionment, and did a Section 338(h)(10) election change the result?
The gain was included in everywhere receipts but not Texas receipts because securities sales were sourced to the payor's legal domicile and the buyer was an Ohio corporation. The seller had to…
Are a software vendor's "system utility" data-entry and EDI products taxable as prewritten software, even though each customer's installation must be uniquely programmed to work?
Taxable -- Petitioner's KEY/MASTER and Trading Partner software products are "prewritten computer software" (and therefore taxable tangible personal property) regardless of how heavily each…
Is an unincorporated residential condominium association whose only revenue is common-charge assessments subject to the New York Article 9-A franchise tax?
Yes. An unincorporated residential condominium association -- owning no property, issuing no stock, with no profit motive and only common-charge assessment revenue -- is generally an association…
What does the available official PDF for South Carolina's September 1997 policy-document index contain?
The PDF says the index covered five Department document types concerning taxation from 1987 through September 30, 1997 and alcoholic-beverage licensing and regulation from July 1, 1993 through…
What does the available official PDF for South Carolina's September 1997 policy-document citator explain?
The PDF explains that the citator was intended to cover Revenue Rulings, Revenue Procedures, Private Letter Rulings, Technical Advice Memoranda, and Information Letters from 1987 through September…
When a document-outsourcing company provides photocopying, duplicating, facsimile, internal messenger service, and equipment maintenance, which pieces are taxable — standalone, bundled, or itemized?
Photocopying, duplicating, facsimile, and equipment-maintenance charges are all subject to sales tax as standalone services; facsimile is additionally subject to sales tax as a telecommunications…
Do motorized shopping carts (the powered, basket-equipped carts stores provide for mobility-impaired shoppers) qualify for the wheelchair sales tax exemption?
Yes. Motorized shopping carts — the powered, tricycle-like carts with a basket that stores provide for shoppers with mobility impairments — are considered wheelchairs for Texas sales tax purposes…
Did a Texas vehicle buyer owe tax again when a dealer collected the tax but closed without remitting it?
No. Motor vehicle tax paid to the dealer satisfied the buyer's payment obligation even though the dealer failed to remit it. An itemized sales invoice was acceptable proof, title could transfer…
Is a workplace drug-and-alcohol-testing program administrator's consulting, sample collection, and reporting services subject to New York sales tax?
No -- none of Safe Systems' services (consulting and training on an internal drug/alcohol testing program, writing testing policies, collecting samples via certified technicians, delivering lab…
Are a pharmacy's printers, toner, and paper used to produce prescription labels and medical information pamphlets exempt from sales tax?
Yes -- because Petitioner's prescription drug labels and accompanying medical information pamphlets are critical elements of the medication product it sells (not just packaging overhead), the toner…
Is admission to a children's indoor play center exempt from sales tax as a participant sporting activity?
No -- Playspace's admission charge for its indoor children's play center is taxable, because its games, toys, playground equipment, and structured activities like sing-alongs and story times are…
Are a consulting firm's visual-impact studies and reports for environmental-review (NYSEQRA) applications subject to New York sales tax?
No, for the core service -- Company A's reports and digitized photo presentations helping clients meet environmental-review visual impact requirements aren't taxable, regardless of where the site is…
Did an out-of-state warranty seller owe county surtax on Florida service-warranty sales, and could it advertise tax-included prices instead of separately stating tax?
No county surtax applied when the seller received payment outside Florida, but state tax still had to be separately stated and computed under the statutory brackets rather than an effective rate.
Did selling or trading an aircraft after an FRV election create extra use tax when reported rentals were below its purchase price?
No. An FRV shortfall below aircraft cost did not create a catch-up tax on disposal alone. Other use after lease-inventory withdrawal could, and a California sale remained taxable.
Does piping and conveyor equipment used to transport product in a Texas refinery or chemical plant still qualify for the manufacturing exemption after September 30, 1997?
No, not on or after October 1, 1997. H.B. 1855 made clear that piping and conveyors used to transport product do not qualify for the manufacturing exemption from that date forward — reversing the…
If you accidentally leave a W-2 off your return and the state doesn't catch it for years, can you avoid the interest that piled up?
No — the protest was denied. Interest on unpaid tax is mandatory by statute and runs from the original due date until the tax is paid, so the years it took the state to catch a missing W-2 didn't…
Does a lease statement saying 'Rental Not Taxable' itself protect the lessee when acquisition tax was not actually paid?
No. The notice only explains noncollection; if cost tax was unpaid, the lessee still owed rent tax but could have indemnity against the lessor.
Is surveying a ship channel to determine water depth (for dredging decisions) a taxable real property service in Texas?
No. Surveying to determine the depth of water in a ship channel — done periodically to decide whether dredging is needed so ships can safely navigate to docks — is not a taxable service. The taxable…
When were commercial fishing vessels and parts bought outside or inside Florida exempt from sales and use tax under the vessel rules?
An out-of-state vessel avoided tax if federal documentation, registration, and Florida-presence limits were met. Fishing vessels and parts also qualified for interstate-commerce mileage proration,…
Is a tire dealer's disposal/collection fee for scrap tires taxable, and does it matter whether the fee is separately stated?
It depends on who bears the fee. The state-imposed scrap tire recycling fee charged to the CONSUMER (new tire buyer) under the now-expiring recycling program is not taxable if separately stated on…
How did Texas tax leased trucks under long-term leases, short-term rentals, and interstate use in 1997?
The 1997 letter taxed leases over 180 days on the lessor's purchase price, while rentals of 180 days or less were taxed on gross receipts at different historical rates. Qualifying interstate trucks…
How did Texas treat a sale of 90% of LLC interests followed by a federal Section 754 basis adjustment under the former franchise tax?
If the seller's gain was unitary income, Texas treated the LLC-interest sale as an intangible sale sourced by the payor's location for both former franchise-tax components. The LLC itself recognized…
How did the former Texas franchise tax define taxable capital, surplus, and net taxable capital?
Taxable capital consisted of the corporation's stated capital plus surplus. Net taxable capital was the taxable-capital amount after apportionment and allowable deductions. The letter directed…
Were a private golf and country club's one-time initiation fees and renewable annual membership fees subject to Florida sales tax?
Yes. Both fees paid for the right to use the club's recreational facilities. The full initiation fee was taxable when the member joined, and each annual fee was taxable when due.
Did community maps given to prospective homebuyers qualify for California's printed-sales-message exemption?
No. Maps and community information occupied most of the area, advertising did not exceed 50 percent, and customer pickup or printer-truck delivery also failed delivery conditions.
Were excimer-laser coronary angioplasty catheters exempt medicines like the two catheter types then named in Regulation 1591?
No. The regulation's exemption was limited to the two named catheter types; laser angioplasty catheters were taxable instruments despite possible functional similarity.
Are compressors that keep breaded fish frozen after processing exempt from Texas sales tax as manufacturing equipment?
No, the compressors are not exempt. A company that cuts, breads, and freezes fish (later shipped to its own restaurants for cooking and sale as food ready for immediate consumption) uses compressors…
Can a hospital buy food processing equipment tax-free with an exemption certificate, given that patient meals are treated as part of health care services rather than restaurant-style food sales?
A hospital can issue an exemption certificate for food processing equipment used both to prepare meals for patients (part of its health care services, not a food sale) and to prepare food sold to…
How does Texas tax prepaid telephone calling cards, and what changed when S.B. 862 reclassified them as tangible personal property effective September 1, 1997?
Effective September 1, 1997 (corrected from an earlier-stated October 1, 1997 date), Senate Bill 862 recharacterized the sale of telephone prepaid calling cards from a telecommunications service to…
How did Florida treat a subsidiary's gain from distributing a foreign-partnership interest within an affiliated corporate group filing separate state returns?
The distribution gain was taxable business income in Florida. A later contribution to another subsidiary was nontaxable if federally nontaxable, and each corporate partner had to report its share of…
When a credit-card rewards certificate is redeemed at a store, should sales tax be calculated on the full purchase price before or after the certificate is subtracted?
Sales tax is correctly calculated on the FULL purchase price, with the rewards certificate's value subtracted only AFTER tax is added — not before. A credit-card rewards certificate earned through…
Is installing a memory card in a computer taxable, and does installing software drivers along with it change the answer?
Yes, installing a memory card is taxable. Inserting a card into a motherboard — whether replacing an existing card or filling an unused expansion slot — is repair, remodeling, or restoration of the…
What South Carolina interest rate applied to tax underpayments and overpayments for the quarter beginning October 1, 1997?
The rate was 9% for the three-month period beginning October 1, 1997. Interest was compounded daily, except that simple interest applied to an underpayment of a declaration of estimated tax.
When a used bookstore later redeems a customer's store credit (from selling used books) toward a new purchase, is tax due on the full purchase price or only the cash portion?
Tax is due on the total purchase price, including the credit portion. A used bookstore is correct to collect sales tax on the full charge when a customer buys a book using a store credit memo…
Does equipment that seals shipping cartons with glue, as the final packaging step before shipment, qualify for the Texas manufacturing exemption?
Yes. Manufacturing is defined as every operation from the first stage of production of tangible personal property through completion — and completion includes packaging, if any, since the product…
Did a corporation owe Texas motor vehicle tax when it changed only its name on the vehicle title?
No. Each corporation had only changed its name by amending its certificate of incorporation. Because the entity remained the same and there was no taxable transaction, changing the name on the Texas…
What Texas tax applied to an importer's test-drive vehicles using metal dealer plates?
It depended on the transportation agency's dealer-plate decision. If the vehicles could properly use metal dealer plates, the importer-distributor owed only the historical $25 dealer-plate tax.…
How did PLR 97-5 tax commercial security monitoring when equipment was sold or separately rented, and how were installation and repairs treated?
Monitoring fees were not taxable communications charges. Equipment sold to the customer was taxable, and a separately stated periodic charge for provider-owned equipment was a taxable rental.…
How did PLR 97-4 tax residential alarm monitoring, provider-owned standard equipment, customer-owned add-ons, installation, and repairs?
Periodic charges for the provider-owned standard package and burglary/fire monitoring were not taxable because the true object was a nontaxable monitoring service, so the provider paid tax when…
Could an out-of-state steel-joist manufacturer accept a resale certificate when it delivered joists directly to a Tennessee job site for a contractor-dealer?
No. The manufacturer had to collect tax when it delivered steel joists directly to a Tennessee job site for a contractor-dealer, even though some joists might later be resold. The Department lacked…
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.