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.
Does a citrus de-greening unit that becomes part of a packing shed still qualify for Texas's manufacturing equipment sales tax exemption?
Yes, but it depends on the contract. If the de-greening unit stays tangible personal property, both the unit and installation are exempt. If it becomes an improvement to realty, the exemption…
Is a corporation dissolved by proclamation that held title to New York real estate subject to franchise tax, and for what period?
It depends on whether it kept doing business. A corporation dissolved by proclamation is subject to Article 9-A franchise tax only while it actually conducts business; one that merely holds record…
Are the transportation fees and landfill tipping fees an auto-shredding company pays to dispose of shredder waste subject to New York sales tax as a trash removal service?
Split result -- the tipping fee an auto-shredding company pays a landfill to accept its shredder waste (even waste with reuse value as landfill daily cover) is NOT subject to sales tax because it's…
Does an out-of-state manufacturer that only occasionally demos at a New York trade show and ships to New York customers by mail or common carrier have to collect New York sales tax?
No -- a Rhode Island manufacturer with no New York place of business or property, no employees or agents soliciting business in New York, and only an occasional (no more than once-a-year,…
When a retailer's private-label credit card program (run by an independent, non-owned finance company) writes off a customer's debt as uncollectible, can either the retailer or the finance company get a refund or credit for the New York sales tax already paid on that sale?
Neither one -- when an independent (non-captive) company issuing a retailer's private-label credit card writes off a cardholder's debt as uncollectible, the finance company can't claim a sales-tax…
Is an unincorporated residential condominium association subject to Article 9-A franchise tax, and how does electing federal homeowners-association status affect its income?
Yes. An unincorporated residential condominium association whose only revenue is common charges and interest income is an 'association' taxable as a corporation under IRC section 7701(a)(3) and Tax…
Are a moving company's charges for packing/unpacking and its sales of packing materials part of a transportation business under Article 9, sections 183 and 184?
It depends on whether the activity is tied to transporting the goods. A moving company is taxed under Article 9 (sections 183/184) instead of Article 9-A only if more than 50% of its receipts come…
Could a city operating county-leased buses for fixed-route and demand-response public service claim Florida's mass-transit fuel tax credit?
Yes, once licensed by the Department as a mass transit system. Under the interlocal agreement, the city controlled and paid for four county-leased coaches used only for nonexclusive public…
Could a retailer avoid California's fraud penalty by saying it retained falsely labeled sales-tax reimbursement to deceive customers rather than evade tax?
No. Knowingly collecting money as tax that would be paid to the state, then retaining it as profit through inflated deductions, supported the fraud penalty.
Does an insurance agent owe Texas sales tax on an administrative fee charged to clients to reimburse the agency for expenses like postage, printing, and phone calls, or on a pass-through charge for a third-party coverage evaluation?
Generally not taxable. The Comptroller ruled that an insurance agency's $50 administrative fee is not taxable if it merely reimburses the agency for enumerated costs like postage, printing, and…
Is equipment for a home recording studio exempt from Texas sales tax if it's used to produce master audio recordings for distribution to record labels?
Yes, with limits. The Comptroller ruled that producing audio recordings for sale, license, distribution, broadcast, or exhibition counts as "manufacturing," so a home-studio producer qualifies for…
In a reorganization, which entities owe Texas franchise tax when a corporate general partner and an out-of-state limited partner hold a Texas-active limited partnership?
The general-partner corporation owes franchise tax; the out-of-state limited-partner corporation and the partnership itself do not. As part of a reorganization, a parent corporation withdrew from…
Did a corporate member include its share of partnership-taxed LLC income and receipts in former Texas earned surplus?
No. Assuming the LLC was treated as a partnership federally, the corporate member excluded its share of LLC income or loss from federal taxable income reported for Texas earned surplus and excluded…
Did Texas or its political subdivisions impose income tax on individuals, or franchise tax on an unconnected North Dakota S corporation?
No on both stated facts. Texas and its political subdivisions imposed no individual income tax on wages, interest, dividends, capital gains, or other income. The North Dakota S corporation also was…
An Internet service provider doesn't charge its own customers sales tax on Internet access (which is correct under Utah law) — but is it legal for the ISP's own upstream vendor to charge the ISP state tax, local tax, and federal tax on the telephone/connectivity service the ISP purchases to deliver that access?
Yes, the vendor's billing was appropriate. Even though the Internet service provider correctly does not charge its own customers sales tax on Internet access, the provider's upstream vendor was…
Which specific charges on a cellular/paging service bill (access fees, airtime, various categories of toll charges, roaming, optional features, equipment sales/leases, late fees) are subject to Utah sales tax, what determines the tax situs (location) for each type of charge, and is the reseller itself subject to any other Utah taxes?
It depends on the specific charge. Taxable: access/activation/termination fees, airtime charges, intrastate toll charges (both call ends in Utah, regardless of LATA arrangement), optional features…
Can the Comptroller exempt interstate trucking companies from sales and use tax on repair parts and tires, or let them apportion the tax based on Texas miles versus total miles?
No blanket exemption and no mileage-based apportionment. The Comptroller explained it cannot rule on whether the sales tax on repair parts and tires is unconstitutional as applied to interstate…
Are disconnection or cancellation charges billed by a telecommunications company subject to Texas sales tax?
Yes. The Comptroller ruled that disconnection or cancellation charges tied to telecommunications service are taxable in the same manner as the underlying service, because they fall within the Tax…
If a cellular carrier gives customers a free or discounted phone when they sign a taxable air-time contract, is sales tax owed on the full contract price or just the net amount paid, and does the carrier owe tax when it buys the phones?
The full amount the customer pays for a bundled cellular phone + air-time contract is subject to sales tax -- not just a discounted 'net' price -- because Utah Admin. Rule R865-19S-68(B) treats a…
I own the gas but a plant does the processing — do I owe New Mexico's natural gas processors tax?
Yes — the gas owner owed the tax, and its refund protest was denied. Central Resources owned natural gas that it paid El Paso Field Services and Williams Field Services to gather and run through…
Can a motor-repair company buy small parts like nuts, bolts, grease, and paint tax-free under a resale certificate, even if it stops billing customers separately for those items?
Yes. The Comptroller ruled that a company repairing and rebuilding electric motors can still purchase small parts like nuts, bolts, grease, and paint tax-free under a sale-for-resale certificate,…
Is mowing, grading, dirt work, and other land-clearing or site-preparation work taxable in Texas, and does it matter whether the work is for new construction or an existing property?
It depends on the activity and the type of property. Agricultural mowing (hay, pasture) is not taxable, but mowing vacant lots for weed/pest control is taxable lawn maintenance. Site preparation,…
When did a corporation's beneficial interest in a trust owning a Texas real-estate joint venture create former Texas franchise-tax nexus?
The joint venture and trust escaped franchise tax only if they were not formed as taxable entity types. The trust was doing business in Texas through its general-partnership interest in a venture…
Can an unincorporated local chapter of a national 501(c)(3) organization use the parent organization's Texas sales tax exemption?
Yes. The Comptroller ruled that a local chapter meets the requirements for exemption from Texas sales, excise, and use tax because it is an unincorporated branch of a parent organization that…
Does a nonprofit organization have to collect sales tax on snack items its youth members sell as part of a fundraising drive?
It depends. Two one-day tax-free sale days per year are exempt if designated in advance, and food products (including candy, carbonated beverages, and diluted juices) sold by a member under 19 of a…
Does a city have to collect sales tax on a separately stated drainage utility district fee billed alongside its electricity and solid waste charges?
No. The Comptroller ruled that a city's monthly drainage utility district fee is not related to its taxable sales of electricity or solid waste collection services, so the city is not required to…
When a contractor repairs railroad track versus depots or parking areas for a railroad company, what parts of the job are taxable?
It depends what's being worked on. Repairing parking facilities is fully taxable as nonresidential real property repair. For track work, the track materials themselves are exempt (bought tax-free…
How did a Texas S corporation report recognized gain from land sold under threat of condemnation for former franchise tax?
The recognized net gain entered both former franchise-tax components. It was included in taxable-capital surplus and earned-surplus federal taxable income, and the net gain entered both Texas…
Were optional charges for training customers to use prewritten software subject to California sales tax?
No. Optional training was a nontaxable service, provided it was not part of taxable software consultation.
Were noncontractual, per-call charges for software technical assistance subject to California sales tax?
No, assuming the provider transferred no tangible personal property. Optional consultation was also nontaxable when customers could buy it separately for a stated price.
Is a sale-leaseback of equipment the lessee already owns and paid tax on subject to Texas sales and use tax?
It depends on the type of transaction. A true sale-leaseback where the lessor leases the equipment back to the lessee under an operating lease is taxable on the lease charges. But if the…
Which kinds of fishing bait are exempt from Texas sales tax as perishable bait, and how does a seller refund tax already collected on them?
Exempt. Live and perishable bait -- including live bait, minnows (fresh or frozen), goldfish, scaleless carp, shrimp, crawfish, worms/night crawlers, shad, shad guts, chicken livers, and chicken…
Is sales tax due on insurance adjusting services for claims related to a declared disaster or catastrophe?
Yes, taxable. Insurance adjusting services are a taxable 'insurance service' under Texas Tax Code Section 151.0039, and nothing in the tax code exempts adjusting services just because the claim…
How does a Texas bank treat gains, losses, interest, and dividends from federal government obligations it buys and sells for its own account?
Only net gains and losses on the securities go into gross receipts, sourced by the payor's location; interest and dividends from federal obligations are excluded from the earned-surplus base. A…
What counts as a single 'business location' under Nebraska's economic development incentive law?
A 'business location' is one continuous parcel of real property, or two or more contiguous parcels. Under Revenue Ruling 29-96-1, the term "business location" in Neb. Rev. Stat. §77-27,189 means one…
Is a company's charge for testing water samples and issuing a results report subject to New York sales tax?
No -- charges for performing water testing (for potability, contaminants, or regulatory compliance) and providing a written results report are not subject to New York sales tax, regardless of which…
Is a bank's purchase of office furniture and equipment from the FDIC, acting as receiver for a failed savings bank, exempt from New York sales and use tax as a purchase from a federal agency?
No -- a bank's purchase of office furniture, equipment, and other tangible personal property from the FDIC, acting as receiver for a failed savings bank, is not exempt from New York sales and…
Does the annual charge homeowners pay for use of a community's pool, bathrooms, and lake rights qualify for New York's homeowners-association exclusion from the club dues tax?
Yes -- the annual charge a community corporation levies on homeowners for use of a shared swimming pool, bathrooms, and lake rights qualifies for New York's homeowners-association exclusion from the…
Does New York sales tax apply to the full charge for an integrated pickup-and-disposal trash removal service even when the waste is hauled out of state and simply dumped, with no processing?
Yes -- picking up, hauling, and dumping a New York customer's waste is a single, integrated taxable trash-removal service under Tax Law § 1105(c)(5), and New York sales tax applies to the entire…
Is a manufacturer's purchase of source artwork (paintings, antique fabric swatches, or similar images) used to design a computer-generated textile pattern exempt from New York sales and use tax as production equipment?
Yes -- an upholstery fabric manufacturer's purchase of source "artwork" (a painting, antique fabric swatch, carved molding, or polished stone slab) that is scanned and used to design the…
Were membership dues paid to a qualifying Tennessee aerobic and fitness club exempt from sales tax?
Yes. The Department ruled that the club's membership dues were exempt because it met the statute's employee, operating-hours, daily-access, floor-space, and activity requirements and had obtained…
Could a moving company buy boxes with a resale certificate, and what tax applied to boxes used in interstate moves?
Yes, after registering as a dealer. The boxes were separately sold, optional, available without moving services, and valuable on their own, so the mover could buy them for resale and had to collect…
Did a California dealer avoid tax on a raffle-prize truck when the winner redirected it to another dealer for a different vehicle?
No. Dealer A was deemed the retailer on the original prize-truck delivery; redirecting the winner's vehicle to Dealer B was a trade-in, not a resale by Dealer A.
Should a staffing arrangement where workers are dedicated full-time to one client be taxed as staff leasing services or as temporary help services?
Staff leasing services. The Comptroller ruled that once the contract was revised to give the staff leasing firms (along with the limited partnership) authority to hire, fire, discipline, reassign,…
Did a trust owe Florida intangible tax when its trustees had to remain outside Florida and its beneficiary held only a limited power of appointment?
No. The trust barred an individual trustee from residing in Florida and a corporate trustee from qualifying or doing business there, so no trustee had Florida situs. The beneficiary's limited power…
Did a trust owe Florida intangible tax when its trustees had to remain outside Florida and its beneficiary held only a limited power of appointment?
No under this original ruling. The trustees had no Florida situs, and the beneficiary's limited power of appointment could not benefit the grantor, the grantor's estate, or estate creditors; the…
Did a trust owe Florida intangible tax when its trustees had to remain outside Florida and its beneficiary held only a limited power of appointment?
No. The trust barred an individual trustee from residing in Florida and a corporate trustee from qualifying or doing business there, so no trustee had Florida situs. The beneficiary's limited power…
Did a trust owe Florida intangible tax when its trustees had to remain outside Florida and its beneficiary held only a limited power of appointment?
No. The trust barred an individual trustee from residing in Florida and a corporate trustee from qualifying or doing business there, so no trustee had Florida situs. The beneficiary's limited power…
Did a trust owe Florida intangible tax when its trustees had to remain outside Florida and its beneficiary held only a limited power of appointment?
No. The trust barred an individual trustee from residing in Florida and a corporate trustee from qualifying or doing business there, so no trustee had Florida situs. The beneficiary's limited power…
Is a Foley urine meter tray (catheter, urine bag, betadine, and other supplies) exempt from Texas sales tax as a prosthetic device or medicine?
Partially exempt. The catheter and urine bag in a Foley urine meter tray are exempt as prosthetic devices because the catheter performs the function of the ureter and the urine bag performs the…
Can a Texas seller who is audited by another state (Alabama) and forced to pay that state's tax on the same materials get a multistate tax credit against, or a refund of, the Texas sales tax it already collected from its Texas customer?
No. The Comptroller ruled that Texas's multistate tax credit only offsets Texas use tax owed by a purchaser on items brought into Texas — it cannot be used to refund or credit sales/use tax the…
When a hotel is remodeled into an apartment complex, is the remodeling contract taxed as residential or nonresidential real property work?
It depends on the property's use after conversion, not before. The Comptroller ruled that remodeling a hotel into an apartment complex is treated as residential real property work, because after…
Are chemicals used to treat water and wastewater exempt from Texas sales tax?
It depends on what the water is used for. Chemicals that become part of water processed and sold for drinking are exempt from Texas sales tax under the manufacturing/processing rule, but chemicals…
Are catheters, and colostomy bags and related supplies, exempt from Texas sales tax as prosthetic devices or medical appliances?
It depends on the item. Colostomy bags, flanges, paste, tape, barriers, seals, gaskets, and dressing-change wipes are exempt under Rule 3.284(c)(2) as colostomy appliances and related supplies.…
Which charges by a public relations/advertising firm — campaign coordination, ad production, air time, copywriting, graphic design, printing, mailing lists, postage, billboards, and specialty items — are taxable in Texas?
It depends on the service. Campaign coordination, producing radio/TV ads, buying air time, public relations copywriting, newspaper ads, and billboard space are not taxable. Graphic design, printing,…
How did Florida intangible tax apply when Florida affiliates sold receivables to a foreign subsidiary before January 1 for intercompany notes?
The Florida affiliates had no tax liability on receivables sold at face value to a foreign subsidiary before January 1 because they no longer owned, managed, or controlled them. If the ownership…
Which sales and retreat charges of a certified nonprofit religious institution were exempt from Florida sales tax?
The organization qualified as a church, so its tangible-personal-property sales were exempt; qualifying religious goods and publications were also exempt, and admissions were exempt when the…
Was a bundled car-dealer promotion taxable when the marketer supplied flyers, mailing services, event staff, training, gifts, and sales tags for one fee?
No tax applied to the dealer's bundled promotional-service fee. The Department treated the marketer's direct mail, flyers, mailing list, gifts, sale tags, event staffing, and sales training as parts…
When did the former Texas throwback rule treat equipment shipped from Texas to another state as Texas receipts?
Sales shipped from Texas entered Texas receipts when the seller was not subject to tax in the destination state. Taxable capital used charter, authority, or doing-business standards; earned surplus…
Is a marketing/business analysis consulting firm's fee subject to New York sales tax, including when it also provides presentation artwork?
Generally no -- a firm's business analysis and marketing-strategy consulting service is not subject to New York sales tax because it isn't one of the enumerated taxable services, but if the firm…
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.