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.
Is a loss-consulting firm's investigative reports, built from subcontracted private investigators and other experts, subject to sales tax as protective and detective services?
Yes -- a loss-consulting firm's investigative reports built from surveillance and background-investigation work by subcontracted private investigators and other experts are taxable protective and…
Did assigning an existing tax-paid equipment lease to a new subsidiary make the remaining rental payments taxable?
No, if the property was transferred solely for first-issue stock. The existing lease kept its tax-paid treatment, but a renewal or new lease was generally taxable.
Is a bioresorbable surgical implant like Seprafilm IM -- an internal adhesion barrier that dissolves in the body over time -- exempt from Texas sales tax as a prosthetic device?
Yes. Texas exempts prosthetic devices from sales tax, and its rule specifically includes devices implanted in the body -- so a bioresorbable membrane like Seprafilm IM, which is surgically implanted…
Could a surviving corporation inherit former Texas business-loss carryforwards from corporations merged into it?
No. Rule 3.555(g)(3) prohibited conveying, assigning, or transferring a former Texas business loss to another entity, including through a merger. The surviving corporation therefore could not use…
Is hiring a trucking company to haul asphalt to a paving job a nontaxable transportation service, or a taxable equipment rental?
Hiring a trucking company to pick up and deliver asphalt to a paving job site -- where the trucking company supplies its own truck and driver, chooses its own routes, pays all operating expenses,…
Were reagents, calibrators, and controls sold for testing patient specimens exempt from Florida sales tax as medical chemical compounds?
Yes. Reagents were chemical compounds, and calibrators and controls contained or functioned as reagents. Because laboratories had to use them to validate patient test results, their sales for…
Were sales of an emergency-information service, annual renewals, and the Florida dealer's commissions subject to Florida sales tax?
No. The service was not taxable, and its wallet card had no value apart from evidencing access to the service, so initial fees, renewals, and dealer commissions were not taxed. The dealer still owed…
My satellite TV provider let me prepay a year of service for $154.95 instead of $354.95 using an 'instant credit certificate,' but then charged me sales tax on the full $354.95, calling the credit a gift certificate -- is that right?
No. Texas sales tax is measured on the actual selling price you actually pay, and an 'instant credit certificate' that immediately reduces your bill at the time of purchase is a discount, not a gift…
My Texas-based internet business builds websites, broadcasts information online, and resells domain name registrations to customers both in and out of state -- which of these are subject to Texas sales tax, and how do I handle out-of-state customers?
Building and maintaining a website is a taxable data processing service, sourced to wherever the customer actually receives the benefit (not where your server sits) if the customer gives you an…
How did South Carolina's 1997 county rankings affect the credit for each new job?
For permanent-business-enterprise tax years beginning in 1997, the per-job credit was $4,500 in a least-developed county, $3,500 in an under-developed county, $2,500 in a moderately developed…
I sell to a Mexican retailer who wants to buy tax-free for resale in Mexico -- what documentation do I need beyond a standard Texas resale certificate, and does a blanket certificate expire over time?
Beyond a properly completed Texas (or Border States Uniform) resale certificate, Rule 3.285(d)(2) requires you to also keep a copy of the buyer's Mexican Registration Form showing their RFC (Mexican…
Is a court-created qualified settlement fund that only invests and distributes funds subject to the New York franchise tax or personal income tax?
No. A qualified settlement fund under IRC section 468B that only holds, invests, and distributes funds is not conducting a business, so it is not a corporation subject to the Article 9-A franchise…
Did a 1997 opinion treat duplicating 500 to 600 electronic press-kit tapes from a completed studio master as qualified production services?
No. It excluded the copies from qualified production services, but California expressly disapproved that conclusion in Annotation 375.0057 in 2004.
Was labor to replace a motherboard or add memory to a customer's used computer taxable?
No, when it merely upgraded the customer's used computer without refitting it for a different use. The parts were taxable; a later computer sale differed.
Did a wooden farm wagon count as a motor vehicle for Texas tax purposes?
No. The wooden farm wagons were not designed to carry people or property over the highway, so Texas treated them as tangible personal property rather than motor vehicles. Changing the business's SIC…
Did four annual paid Texas product-training seminars defeat P.L. 86-272 protection for a medical-products manufacturer?
Yes. Four recurring one-day seminars teaching customers how to fit the company's medical devices were training services, not protected solicitation. Their regular annual schedule meant they were not…
When could a manufacturer sell prescription medical trays to Florida hospitals and physicians without collecting sales tax?
Only when the trays were dispensed by prescription and the seller obtained the required documentation: an exempt hospital's certificate number, or a resale or physician-order-use certificate from…
What process did RP 97-1 describe for proposing, amending, or repealing a South Carolina Department of Revenue regulation?
An internal proposal moved through division and policy review, Director approval, a State Register Notice of Drafting, public comments, possible revision, a Notice of Public Hearing, any required…
Who collected use tax in a multi-party out-of-state drop shipment when the final seller to the consumer was a California retailer?
The California final seller collected on the end-user price, but the upstream drop shipper had to prove that seller's California status when it lacked a permit-number resale certificate.
Who collects Texas tax when a storage facility auctions vehicles for the U.S. Marshals Service, and how are salvage vehicles treated?
A nondealer auctioneer acting for the U.S. Marshals Service did not collect motor vehicle tax; the buyer paid it at county registration. Salvage vehicles were tangible personal property subject to…
Does an out-of-state manufacturer with no Utah offices or employees have Utah sales tax nexus just because it hires an independent contractor to install and service its products in Utah, and how are warranty repairs and installation taxed?
Yes, nexus exists here through the service contractor. Even though the manufacturer had no Utah offices, warehouse, inventory, or sales force, and shipped everything by common carrier, the…
Is Utah sales tax owed on a computer software licensing agreement that also bundles in maintenance, training, and other services?
It depends on whether the software is "canned" (prewritten, sold to a general market) or "custom" (built to a particular customer's specifications). Canned/prewritten software is taxable in Utah…
Did sending an employee to install goods in California turn an out-of-state shipment into a California sales-tax transaction?
No, on the stated facts. Supervising Tax Counsel said the sale appeared to occur outside California when the retailer shipped the property, so sales tax did not apply and the consumer owed use tax…
I design store signage and trim on a computer using 3D drafting software, then fabricate and install it in new stores -- am I taxed as a contractor or as a manufacturer, and does my design equipment qualify for the manufacturing exemption?
You're taxed as a contractor, not a manufacturer, because you affix the signage and trim you fabricate to realty under a new construction contract. Tax is due on your cost of materials (lump-sum…
I run a lockbox/remittance service that automates payment posting for doctors' offices -- is that a taxable data processing service in Texas?
Yes -- taxable. The Comptroller ruled that the ABC charges for this automated accounts-receivable payment-posting service fall within the definition of a taxable data processing service under Rule…
Our nonprofit 501(c)(3) garden club association prints instructional brochures and sells them at no profit to local garden clubs in Texas -- do we owe sales tax on those sales?
No -- the sale is exempt from Texas sales tax. The Comptroller ruled that brochures published or distributed by a nonprofit 501(c)(3) organization are exempt from sales tax under Texas Tax Code Sec.…
My school teaches in New Mexico but develops its curriculum and runs job placement out of state — can I apportion my tuition so New Mexico only taxes the in-state part?
The protest was denied. ITT Educational Services runs a vocational school (ITT Tech) in Albuquerque and paid gross receipts tax on its bookstore sales but never on tuition. After an audit, the…
Did six California market-survey trips create nexus for an out-of-state manufacturer even without orders, samples, brochures, or trade shows?
Yes under the historical facts. Customer-needs surveys and noncustomer contacts maintained or enhanced the market, and nexus applied to all divisions of the corporation.
Does sales tax apply to a commercial greenhouse and laboratory used to grow, propagate, and sell orchids from seed?
No sales tax is due. The Comptroller confirmed that machinery and equipment -- including a qualifying building or structure -- used exclusively to process, pack, or market agricultural products by…
How did a Texas or foreign corporation receive its Comptroller taxpayer identification number?
Secretary of State filings automatically registered a Texas corporation with the Comptroller and generated a temporary taxpayer number. Texas assigned a permanent number after receiving the…
When could a South Carolina construction contractor buy building materials without the additional 1% local-option tax under the 1997 rules?
The contract had to be executed before the county's tax-imposition date, or arise from a written bid submitted before that date, and a verified copy had to be mailed to the Department within six…
Did routing a property transfer between wholly owned subsidiaries through the parent's equity account eliminate consideration and sales tax?
No. Credits and debits to the parent's clearing account conferred benefits and detriments that counted as consideration, making the subsidiary transfer a taxable sale.
Did an agreement to purchase existing accounts receivable at a discount create Florida documentary stamp tax liability?
No. The submitted agreement to buy existing accounts receivable did not create documentary stamp tax liability. The ruling was limited to that agreement and excluded any additional documents later…
Is replacing a temporary fire sprinkler system with a new one during finish-out of a never-occupied strip-center lease space taxed as new construction or as nonresidential remodeling?
It's new construction, not remodeling -- because the lease space had only been roughed-in and was never finished out or occupied, installing the new fire sprinkler system counts as new construction…
My local sales tax rate changed partway through a multi-year equipment lease -- do I owe the old rate or the new rate for the rest of the lease, and what happens when the lease is renewed?
For a fixed-term operating lease (like a 5-year lease), the sales tax rate is locked in at the rate in effect when the lease was signed (consummated) -- it does not change even if the local tax rate…
Did corporations with more than 35 shareholders add back officer and director compensation under the former earned-surplus tax?
Yes. Section 171.110(a)(1) required the officer-and-director compensation add-back, while subsection (a)(2) excused corporations with no more than 35 shareholders. Presuming each claimant had more…
Was a nonprofit private club's annual fee for inactive equity members taxable when it covered overhead but provided no access to club facilities?
No. The fee covered an inactive member's share of taxes, insurance, security, and other overhead while the equity bond awaited sale. Because it preserved status but granted no facility use, it was…
Was a private club's annual inactive-member fee subject to Florida sales tax when it preserved good standing but allowed no facility use?
No. The annual fee merely kept the inactive equity member in good standing. Because the member could not use club facilities without converting membership status and accepting other charges, the fee…
Did a voting trust holding shares for 19 people count as one shareholder for the former officer-compensation add-back exception?
Yes, if the shares were registered in the trust's name and the trust was not organized to avoid the add-back. Rule 3.558(b)(7) counted a trust, association, or other registered legal entity as one…
I'm a Texas private investigation/security firm with clients and jobs both inside and outside Texas -- which of my investigation and security services are subject to Texas sales tax?
It depends on where the investigation is performed and where its object/benefit is located, not on where the client is based: investigations of people, places, or facilities located outside Texas…
We're restructuring ownership of a Manhattan office building through five coordinated steps happening the same day, maybe within minutes of each other: a bank's new entities will buy out a 74% interest in two upper-tier partnerships; simultaneously, the remaining lower-tier partnership entity will buy out the other partner's 74% stake in the property-owning partnership, which then dissolves and distributes its real estate to the surviving entity; the bank's new entities will then redeem their upper-tier partnership interests for a direct 74% stake in the entity that now holds the real estate; and finally, the original upper-tier partners will form a new joint entity holding the remaining 26%. Which of these steps trigger New York's Real Estate Transfer Tax, and which are exempt restructuring steps?
Split outcome -- the core 74% acquisition is taxable (viewed as one integrated transaction), while the remaining restructuring steps are exempt. The property at 40 West 53rd Street was owned by 40…
Was a synthetic lease of improved Florida real property taxable as rent when its substance was a financing arrangement?
No. Under the submitted documents, the synthetic lease more closely resembled a mortgage or financing arrangement than a true lease, so the payments were not subject to sales tax under section 212.031.
Is installing an awning or canopy taxable as new construction, or as a sale of tangible personal property, under Texas sales tax rules?
It depends on whether the canopy becomes an improvement to the realty. If it does, the installation labor counts as new construction and is not taxable, but the materials are taxable (per the…
Did a stock sale and inclusion in a new federal consolidated return end a corporation's former Texas franchise-tax obligation?
No. The stock sale and shortened federal consolidated-return period did not end the corporation's Texas status while its certificate of authority remained active. Its filed 1996 report produced no…
What Utah corporate taxes does an out-of-state mortgage lender owe if it's qualified to do business in Utah but has no offices, property, or employees here?
It owes Utah corporate franchise tax, because holding a Certificate of Authority to do business in Utah as a foreign corporation creates nexus by itself -- Public Law 86-272 doesn't help here since…
I overpaid a state fuel fee for years because the state's own form never told me to subtract the exempt gallons — can I still get all my money back?
The protest was denied. Smith Oil, a Clovis fuel distributor, paid New Mexico's petroleum products loading fee on all the diesel it received from 1990 to 1995 — including diesel sold for…
I'm a carpet company recarpeting an apartment complex, and the job includes the manager's office and lobby along with the apartments themselves -- is the labor to recarpet the office/lobby taxable, or does it count as part of the tax-exempt residential job?
It depends on how the office/lobby is billed and how big it is relative to the whole job. If the office/lobby recarpeting labor is separately stated from the apartment recarpeting labor, it is…
Are checks that a bank or credit union sells to its customers subject to Texas sales tax, and who has to collect it?
Yes -- checks are taxable tangible personal property under Sec. 151.010, so the sale of checks delivered to a purchaser in Texas is taxable. Who must collect and report the tax depends on how the…
If I perform scheduled, periodic maintenance on real property and incorporate materials into it, am I a contractor for tax purposes -- and does it matter whether the property is residential or nonresidential?
Yes, you're a contractor either way. Under Rule 3.291(a)(3), a person who repairs, restores, or remodels residential real property and incorporates tangible personal property into it is a…
Is an out-of-state corporation that owns a limited partnership interest in a partnership doing business in New York subject to New York franchise tax?
Yes. Under 20 NYCRR 1-3.2(a)(6) a foreign corporation is treated as doing business in New York if it is a limited partner in a partnership (other than a portfolio investment partnership) that does…
Are reinsurance premiums counted as 'premiums' when testing whether more than 95% of an insurer's premiums are for annuity contracts under section 1505(b)?
Yes. For the section 1505(b) test of whether more than 95% of an insurance company's premiums are received as consideration for annuity contracts (or section 1510(c)(2) policies), 'premiums' has the…
What does the available official PDF for South Carolina's December 1996 policy-document index contain?
The PDF says the index covered five Department document types concerning taxation from 1987 through December 31, 1996 and alcoholic-beverage licensing and regulation from July 1, 1993 through…
Did sweepstakes mailers promoting premium-rate 900-number calls and distributing retailer coupons have the principal purpose of advertising goods or services?
Yes. Looking at the whole program, the sweepstakes was a device to sell the petitioner's 900-number services and help retailers sell through coupons, so the mailers qualified.
Were database-access charges taxable when the provider installed software but retained title, possession, and control during installation?
No on the stated facts. The provider transferred neither title nor possession of software or other tangible property, so its database-access fees were not taxable.
Can property bought after a taxpayer applies for a subsequent Nebraska incentive agreement still get the property tax exemption under the first agreement?
No -- filing the second application draws the line. Under Revenue Ruling 29-96-2, property acquired after the date a taxpayer applies for a subsequent agreement covering the same project cannot…
Do league fees paid to a nonprofit that organizes recreational softball, volleyball, and table tennis leagues count as taxable 'club dues'?
No -- league fees paid by teams to a nonprofit that runs open, non-exclusive softball, volleyball, and table tennis leagues aren't subject to the club dues sales tax, because the members have no…
Is a utility's fee for operating a building's heating, air conditioning, and electric generating equipment on the owner's behalf subject to sales tax?
Yes -- when a company operates and monitors a building's boilers, air conditioning units, and electric generators on the building owner's behalf (turning them on and off, adjusting them, and logging…
Does a New York social/athletic club have to collect sales tax on dues paid by members who live outside New York?
Yes -- a social or athletic club based in New York must collect sales tax on membership dues from every member over $10/year, regardless of whether the member lives in New York or another state,…
Once a homeowners association acquires a swimming pool and tennis courts for its members, does any part of its monthly association fee become subject to the club dues sales tax?
No -- because this is a homeowners association whose membership is limited to owners and residents of homes in a defined development, its monthly association fee stays entirely outside the club dues…
Does a Professional Employer Organization (PEO) that becomes the employer of record for its clients' workers, handles payroll/withholding/workers' comp, and leases those employees back to the clients, owe Utah sales or use tax on the payroll-cost reimbursements or its service fee charged to clients?
No. Neither the payroll/employment-tax/benefit reimbursement amounts nor the separate service fee that a Professional Employer Organization (PEO) charges its clients are subject to Utah sales 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.