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.
A printer sold newspaper inserts/flyers to retail stores. Some inserts were delivered directly to newspapers for distribution, some went to a mailing service instead, and some were shipped out of state. Are any of these exempt from Texas sales and use tax, and should the assessed penalty and interest be waived?
Split result. Inserts delivered directly to an actual newspaper for distribution as part of the newspaper are exempt under Tax Code § 151.319(c), so those specific invoiced items were ordered…
When did superseded RR 96-8 include a city or county tourism or restaurant fee in taxable gross proceeds?
A fee imposed on the restaurant or hotel was the retailer's receipt and expense, so an amount recovered from the customer entered taxable gross proceeds. A fee legally imposed on the customer was…
When did superseded RR 96-7 exempt a federal employee's South Carolina hotel stay from accommodations sales tax?
The stay was exempt only when the federal government directly purchased it—through direct billing, a government check, or a qualifying centrally billed government card. An employee-paid stay was…
What South Carolina tax relief did RP 96-2 provide to military personnel serving in Operation Joint Endeavor and their spouses?
Affected personnel and spouses received at least 180 days after departure from Bosnia, Herzegovina, Croatia, or Macedonia to file individual income-tax returns and pay additional tax. The procedure…
Did South Carolina intend to follow the federal check-the-box entity-classification rules described in IL 96-15?
Yes, prospectively. The Department said it intended to follow the federal entity-classification rules for South Carolina income-tax purposes as soon as they became effective federally. At the time…
Could an invoice title statement establish that a sale occurred before delivery in the retailer's own vehicle?
Yes. California accepted the invoice statement as proof confirming an explicit earlier agreement, including for plants transported and spread at a jobsite.
Did California have to send a third-party grantee the taxpayer's 30-day preliminary notice before recording a nominee lien?
No. Staff said section 7097 required notice to the delinquent taxpayer, not the third-party grantee, and a nominee lien reached only the transferred real property.
Could California record a nominee lien after a taxpayer transferred real property for no consideration immediately after a tax determination?
Yes. Staff concluded that the no-consideration transfers were intended to hinder, delay, or defraud collection and approved a nominee lien against the property.
Is a syringe that injects solution into a catheter attached to a patient (rather than directly into the patient) exempt from Texas sales tax as a hypodermic syringe?
No. Because the needle goes into a catheter attached to the patient rather than directly into the patient, the syringe is not considered a hypodermic syringe, so it does not qualify for the Tex. Tax…
A supplier sells car wash soap, upholstery shampoo, deodorizers, and other supplies to auto dealers, car washes, body shops, and detailers. Which of these items are taxable, can customers just write 'BLANKET' on a resale certificate, and is the supplier covered if a customer just refuses to pay tax?
No blanket exemption from listing items, and no, a refusal-to-pay form doesn't protect the seller. A resale certificate must describe the general nature of the taxable items — the single word…
Did a California city, county, or regional transit authority owe nonadmitted insurance tax when it directly bought coverage from a nonadmitted insurer?
Yes. A governmental or quasi-governmental entity that directly negotiated and obtained insurance from a nonadmitted insurer was treated as a 'person' subject to California's Nonadmitted Insurance…
Could a purchaser provide an exemption certificate retroactively to support a retailer's refund of tax from earlier sales?
No. An exemption certificate had to be timely, but the retailer could still seek a refund by proving from the factual record that tax was actually overpaid.
Did monthly MLS books qualify for California's subscription-periodical exemption when common carriers delivered them only to a central member pickup point?
No. Carrier delivery had to reach each subscriber; central pickup left the subscriptions taxable whether or not the books otherwise qualified as periodicals.
If a company keeps a resale inventory of replacement parts and later writes some of them down or scraps them because they're obsolete, is sales tax due on those parts?
It depends on what happens to the parts. Parts purchased for resale can be bought tax-free with a resale certificate. If the parts are later marked down and sold, sales tax is due on that (lower)…
Is the sale, fabrication/manufacture, and installation of custom blinds, draperies, and plantation shutters taxable in Texas, and does it matter whether the work is done in new-home construction versus an existing home?
It depends on the item and on new construction vs. existing home. Materials that become part of blinds and draperies are always taxable (tax collected per the contract type — lump-sum vs.…
Does a ready-mix concrete reclaimer — equipment that washes and separates sand and gravel out of waste ready-mix concrete so it can be reused — qualify for Texas's manufacturing equipment sales tax exemption?
Yes, if the equipment is an integrated piece of equipment whose primary purpose is a direct manufacturing process. The Comptroller ruled that washing and separating manufactured aggregate so it can…
A manufacturer hired a company to manage its parts/supplies warehouse, and that same company also sells parts/supplies to the manufacturer. What determines whether the warehouse management fee is taxable?
It depends on whether the manager is performing taxable services (like janitorial or data processing) as part of the warehouse management work. If so, tax is due on those taxable services, including…
When is custom software considered 'developed from scratch' and when has a developer transferred 'exclusive rights' to it, for purposes of the Texas custom-programming tax treatment discussed in an earlier ruling (fiche 9309L1273C08)?
It depends on the facts, but the letter lays out the tests: 'exclusive rights' means the developer gives up ALL rights to copy, change, or market the software and won't sell it to anyone else — if…
If a state agency leases office space in a privately owned building and puts the utilities in its own name, is it exempt from tax on the utilities even if the building owner later reimburses the agency for the utility cost?
Yes. Utilities are taxable items, but a state agency occupying a privately owned building can buy them tax exempt under Sec. 151.309, Tax Code, as long as the utilities are in the agency's own name…
Which Tennessee locality imposed local-option sales tax on paging services?
The Tennessee locality where the customer's paging-service bills were sent imposed the local-option sales tax. The Department treated that billing location as the location of the paging system being…
Is revenue from a repeater service that is not connected to the public switched telephone network subject to Texas sales tax, and is it also subject to the Telecommunications Infrastructure Fund assessment?
Yes to sales tax, no to the TIF assessment. Revenue from a repeater service that is not interconnected to the public switched network is subject to Texas sales tax, but is not subject to the…
New York Advisory Opinion TSB-A-96(35)S: When a group of securities-clearing companies finances new equipment through the New York City Industrial Development Agency's bond program, are the equipment purchases/leases, the companies' lease payments to the IDA, the $1 buyout price, and the early-removal penalty all exempt from New York sales and use tax?
Yes to all four -- as long as the IDA stays the on-paper purchaser, lessor, or lessee. Because title to the equipment runs through the New York City Industrial Development Agency (IDA) under General…
Which parts of the Origin Tacker surgical system were exempt from sales tax?
The implanted tacks were exempt as sutures, but the reusable handle and disposable delivery tubes were taxable instruments. An unallocated kit price was fully taxable.
Is a technical writing service — such as preparing a material safety data sheet on compressed gases — subject to Texas sales tax?
No, not the writing/editing itself. Separately-stated charges for developing a technical document (research, writing, and editing) are not taxable, but the writer owes tax on the materials and…
A privately owned building is leased to a tax-exempt entity, and the owner plans a 12,000 square foot expansion. Is the construction work exempt from Texas sales tax as an improvement for an exempt organization?
No. Because the building is privately owned, the construction work can only qualify for the exemption if the remaining lease term exceeds the anticipated life of the improvement. Here the lease has…
Is a towable hydro-mulcher taxed as a motor vehicle or under the limited sales tax, and what happens when one is mounted on a cab chassis before the chassis is sold?
Towable hydro-mulcher units are considered equipment or moveable specialized equipment and are taxed under the limited sales tax provision (not as motor vehicles). But if one of those units is…
If a company buys an aircraft, will it owe Texas sales or use tax depending on where the aircraft is hangared and how much it's flown in Texas?
The Comptroller agreed with the taxpayer on all three points: (1) an aircraft hangared outside Texas and used more than 50% outside Texas is not subject to Texas use tax; (2) if the aircraft is used…
Is a medical transcriptionist's service of transcribing oral or taped medical dictation into a patient's records and letters subject to Texas sales tax as a data processing service?
No. A district court ruled that a medical transcriptionist's transcription of medical dictation is not a taxable data processing service, the Comptroller decided not to appeal, and medical…
A for-profit company contracts with a Texas public school district to operate and manage one of its elementary schools, buying computers, software, books, and supplies for the school. Are those purchases exempt from Texas sales/use tax?
Generally no, not automatically. Because the for-profit company (not the school district) is buying the goods to perform its taxable-benefit services contract, the company owes tax on the taxable…
What South Carolina tax interest rate applied for the three-month period beginning July 1, 1996?
The rate was 9% for underpayments and overpayments for the three-month period beginning July 1, 1996. The notice said interest was compounded daily, except that simple interest applied to…
Can a utility company refund state and city sales tax on an inactive residential electricity account where the electricity was used 100% for residential purposes?
The utility can accept an exemption certificate and refund the state sales tax, but only for billing periods within the 4-year statute of limitations (billing periods starting on or after August 1,…
Were consumer loans taxable after an out-of-state bank sold them to an out-of-state subsidiary before January 1?
No. The loans had no Florida taxable situs on January 1 because the non-Florida subsidiary owned them. The bank's described servicing was ministerial, and the subsidiary's note could be eliminated…
Did a year-end sale of receivables leave the Florida seller or the out-of-state buyer owing Florida intangible tax on the receivables?
No. The Florida corporation did not own, manage, or control the receivables on January 1 after selling them to the out-of-state limited entity, and the buyer had no Florida taxable situs on the…
Were employer-sponsored 403(b) retirement plans subject to Florida intangible personal property tax?
No. Florida treated the 403(b) plans as annuity contracts whose cash equivalents qualified as exempt money, so the married plan holders did not owe annual or nonrecurring intangible personal…
Did a Florida resident owe intangible tax after contributing an investment portfolio to a non-SEC-registered out-of-state limited partnership?
No. After contribution, the partnership rather than the Florida resident owned the portfolio, so the resident had no tax on those assets. The resident's limited-partnership interest was exempt…
Why did California give retroactive effect to the Regulation 1525 treatment of new oak wine barrels bought to impart oak into wine?
Because the amendment recognized an exemption under existing law, and the supporting facts and unchanged industry practices applied equally to earlier audit periods and future periods.
Are restocking fees charged when a customer returns merchandise subject to Texas sales tax?
No. Restocking fees are not taxable. The retailer should credit the customer the original purchase price plus the tax paid on that price, and then may deduct the separately stated restocking fee…
Is a water softener used to condition water for a newspaper printing press exempt from Texas sales/use tax as manufacturing equipment?
No. The water softener itself is taxable equipment because it is one step removed from directly manufacturing the newspaper. However, the chemicals previously used to treat the water are exempt as…
When a buyer acquired water coolers already under tax-paid leases, was the asset sale exempt and did the sellers' tax-paid status carry over?
No. The asset sale was taxable, the buyer did not inherit the sellers' tax-paid status, and tax was due on the buyer's purchase price rather than later rental receipts.
Does a raw water sand filter system that treats water used to cool machinery and equipment in a manufacturing process qualify for Texas's manufacturing exemption?
No. The raw water sand filter project does not qualify for the manufacturing exemption because the water it treats is not used in processing tangible personal property for sale — it's used to keep…
Is the charge for a membership coupon book — which contains order forms customers use to order manufacturer coupons redeemable for discounts — subject to Texas sales tax?
No. The charge for the coupon book itself is not taxable because the sale is treated as the sale of an intangible. However, the company must pay Texas sales or use tax on the charge to print the…
Did locating a grocery store inside a resort area with an admission charge make the store a place to which admission was charged for food-tax purposes?
No. Courtesy passes and access for non-recreational shoppers supported treating the resort grocery like any other grocery store rather than an admission-charged place.
Which recording-industry products qualified as master tapes or records under California's partial exemption?
Lacquer, cassette, and CD masters plus intermediate multitrack and two-track tapes qualified; mothers, stampers, and finished records remained taxable.
Which brewery materials could be bought for resale, and which were taxable processing or packaging supplies?
Chillproofers, foam stabilizers, water conditioners, organic ingredients, and specified closures qualified; clarifiers and listed production supplies were taxable.
Were ear putty and molded plugs used after eardrum surgery exempt prescription medicines?
No. The audit response treated Ear Putty and Medco-Mold as taxable protective devices because they kept foreign material out of the middle ear rather than acting as medicinal substances or preparations.
Which editing, audio, duplication, film-to-tape, raw-stock, overhead, equipment, and release-print charges did California classify as qualified production services or taxable sales?
Qualified editing, sound, intermediate duplication, and transfer charges were nontaxable in full; exhibition copies were taxable, with raw stock bought for resale.
Did a motion-picture release print become a release print only after mounting on reels, and was the mounting house's initial winding charge taxable?
The print was a release print whether wound on spools or reels, and the mounting house's initial winding on reels was taxable fabrication labor.
When are an interior decorator's design and selection fees taxable in California?
Bona fide professional design services can be nontaxable if separately supported, but fees tied to acquiring, selecting, or providing furnishings are part of the taxable merchandise price.
Was additional tax due when cigarette-package coupons were redeemed for merchandise available only from the manufacturer?
No on the stated facts. The premiums were treated as sold with the cigarettes, whose total customer consideration had already been taxed, so the approved conclusion imposed no additional tax on…
Were Pedialyte sales nontaxable only through pharmacies with physician-dispensing records, or also when consumers bought it from grocery stores?
They were nontaxable through either channel. The memorandum treated Pedialyte as medicine for childhood illness and did not require physician-dispensing records.
Did words such as 'carbohydrate' or 'energy' make sports energy drinks taxable dietary supplements designed to change caloric intake?
No. The memorandum treated the sports energy drinks as ordinary sugar-and-water beverages for temporary exercise depletion, not taxable nutritional supplements.
Was a lump-sum optional maintenance agreement covering industrial equipment and software entirely nontaxable?
No. The charge had to be allocated, with tax applied to the software-maintenance portion and not to the optional equipment-maintenance portion.
Could an aircraft lessee buy repair parts for resale because its lease transferred title to the lessor and the lessor allegedly leased the parts back?
No. The lessee consumed the parts in meeting its repair and maintenance duty. Contractual title passage did not create a resale to the lessor or an exempt leaseback.
For Texas sales tax purposes, is work on golf course features (lakes, cart paths, retaining walls, bunkers, tee signs, bridges, gabions) taxable remodeling/repair labor, or nontaxable new construction labor?
It depends on the specific feature and circumstances. A golf course is a collection of improvements to realty (cart path, clubhouse, fairway, green, lake, parking lot, tee box); repairing,…
A photographer offers glamour photography sessions that include a free makeover. Can the makeup and supplies used in the makeover be purchased tax free, and is the photographer responsible for collecting tax on the session itself?
Partly. The photographer may issue a resale certificate to buy tax free only the makeup and supplies actually transferred to the customer (like makeup, lipstick, and hair spray). Tax is owed on…
Does re-processing a customer's plastic pellets — melting them down in a twin screw extruder, blending in a hardener, flame retardant, or other material, and re-pelletizing — qualify for Texas's manufacturing exemption?
Yes. The Comptroller ruled that melting the customer-owned plastic pellets, adding a hardener, flame retardant, or other material, and forming new pellets is "processing" tangible personal property…
Is a health/athletic club's membership revenue subject to Texas sales tax, and does that change if the membership was purchased under a physician's written prescription?
It depends on what's being sold. Clinical services performed pursuant to a physician referral and written prescription (like cardiac, pulmonary, or diabetes rehab and testing, or…
Were sales of prepaid overnight-shipping envelopes taxable, and what if the reseller also supplied packing materials?
The prepaid mailer represented a nontaxable shipping service, like a postage stamp; separately transferred packing materials such as cushioning were taxable tangible property.
New York Advisory Opinion TSB-A-96(33)S: Are the fees a farmer charges to board and care for horses kept on his farm for breeding purposes subject to New York sales tax?
Yes, exempt -- but only if the boarded horses are used predominantly to breed horses for sale, and the owner provides a Farmer's Exemption Certificate. A farmer boards horses belonging to other…
New York Advisory Opinion TSB-A-96(32)S: Is installing custom-cut, permanently anchored closet shelving a tax-exempt capital improvement, and does it matter whether it's going into a brand-new building or an existing one?
It depends on whether the building is new or existing. Home Insulation & Supply Inc. installs closet shelving cut to the exact size of each closet, permanently anchored with screws, nails, or…
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.