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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Were leases of industrial-gas bulk storage and vaporization tanks exempt as utility delivery equipment or manufacturing machinery in Connecticut?
No. The gas producer delivered liquid oxygen, hydrogen, helium, or nitrogen by tank truck into customer-site tanks that vaporized the product before a short pipeline carried it into the plant. The tan…
Could a school sell taxable yearbooks through an exempt organization's once-a-year, 24-hour tax-free sale?
Yes. Tax was avoided when the yearbooks were delivered to the school on one day, even if students ordered and picked up their books over multiple days.
Could a customer that owned a manufacturing aid claim the manufacturer refund when it was not itself engaged in manufacturing for ultimate sale?
No. Ownership under Rule 3.300(b)(3) was insufficient because § 151.318(g) limited the refund to a person actually engaged in manufacturing for ultimate sale.
When was labor to install an internal or external hard drive or memory card taxable, depending on who sold the component and whether it went inside the computer?
Internal installation was taxable repair or remodeling whether the component replaced a defective part or upgraded the computer. Installing an external component bought from another vendor was nontaxa…
Could the sale of 33 drilling rigs and their associated equipment qualify as an exempt occasional sale in Texas?
Yes. Separate income-and-expense records made each rig an identifiable business segment, so each sale could qualify for the occasional-sale exemption.
Was a post-eye-surgery kit containing medical supplies, sunglasses, a video, and a leather bag taxable in Texas?
The whole kit followed its predominant cost: exempt prescribed wipes, tape, and sunglasses made it exempt, while predominant taxable video and bag costs made it taxable.
Were charges to disassemble and reassemble modular office furniture taxable when the work was necessary to move an office?
No, when the purpose was moving and records made that clear. Charges to reconfigure, repair, or add parts to the furniture remained taxable.
Did FDIC or RTC involvement make separately organized operating properties exempt from Texas sales and hotel occupancy taxes?
No. The Comptroller's General Counsel treated the properties as separate private entities that remained responsible for taxes on their continuing operations.
Could a natural-gas marketer making only exempt sales issue a resale certificate without holding a Texas sales-tax permit number?
Yes. A supplier could accept the no-number certificate if the buyer claimed all sales were for resale or exempt customers and the supplier lacked contrary knowledge.
Were debt-collection services taxable when the creditor was in Texas but the debtor resided outside Texas?
No. Texas tax applied only when the debtor's address at placement was in Texas and the creditor was located or doing business in Texas; the debtor here was out of state.
Which printed materials qualified for the historical Texas publication-tax refund, and what documentation was required?
Only books, magazines, and periodicals bought before August 28, 1989 qualified, subject to four years; brochures, advertising items, and printing services did not.
Could a debt collector buy notices for resale, and when was separately purchased software support taxable?
Notices were taxable because the client lacked custody; support from the software seller was taxable, while an unrelated provider's support was not.
Which accessory tools, tool-holder parts, and measuring devices received Connecticut's manufacturing exemption or reduced historical tax rate?
Accessory tools and production-machine tool holders used directly in fabrication were exempt, as were collets functioning like exempt chucks. Parts of tool holders generally did not qualify for the re…
How could local sales tax be allocated when a retail building straddled the San Antonio and Leon Valley city boundary?
Because both sides had the same rate, the tenant could apportion by each city's share of floor area; if rates differed, the cash-register location controlled.
Was electricity used by a dialysis treatment center exempt from Texas sales tax?
No. The center's electricity was taxable commercial use even though the doctors' services and dialysis treatments were nontaxable and some patient supplies were exempt.
How did Texas sales tax apply to clowning, party decorations, giveaways, rentals, cleanup, and out-of-state decorating work?
Clowning alone was nontaxable, but decorating, decoration sales or rentals, and related cleanup were taxable; bundled charges and where goods were used affected the result.
How did Texas tax typesetting, color separations, film, and printed advertising literature distributed in and outside Texas?
Prepress work, film, and negatives were taxable; printed literature depended on resale, delivery, giveaway use, and proof of out-of-state shipment.
Did an auto-crushing business need a Texas sales-tax permit when buying title-surrendered salvage units and selling crushed vehicles to a steel mill?
Yes. Once the units lost their identity as motor vehicles, purchases and sales involved tangible personal property, with resale certificates on both transactions.
Were lighting and HVAC/refrigeration maintenance agreements taxable when they covered both real property and tangible personal property?
The lighting agreement and the single-charge mixed HVAC agreement were fully taxable; separate charges and the share attributable to repairs could change real-property treatment.
Could contractors building the federal Homeport naval facility in Corpus Christi rent equipment and obtain supplies tax-free?
Yes. Although federal-contract equipment rentals were generally taxable, Homeport contractors could give suppliers exemption certificates for qualifying contract inputs.
Were a retailer's forfeited special-order deposits and layaway cancellation fees subject to Texas sales tax?
No. Because the customer received no merchandise after canceling, the Comptroller said no taxable sale occurred.
Did an out-of-state seller of television maintenance contracts have Texas nexus and owe tax on contracts, parts, freight, and installation?
Yes. Hiring a Texas repair contractor made the seller subject to Texas permitting and tax duties; maintenance, parts with freight, and installation were taxable.
Which charges for bank software setup, programming, conversion, installation, training, optional programs, and continuing support were taxable?
Data conversion, canned software, seller modifications, installation, and support were taxable; qualifying contract programming and separately stated training were not.
Was natural gas used in a nursing home's separately metered laundry facility residential or taxable commercial use?
It was residential use when the nursing home operated the laundry for its own linens and residents' clothing, but commercial if it served or was run by a third party.
Did a predominant-use utility study completed before August 3, 1987 need later engineer certification or a replacement study?
No. Pre-August 3, 1987 studies needed neither engineer certification nor replacement, though changed utility uses required an update.
Did amended construction-contract language separately stating materials from labor satisfy a prerequisite for Texas enterprise-project tax refunds?
Yes. The Comptroller found the amended agreement clearly separated because it required material charges and invoices to be stated separately from labor and services.
Was installing or upgrading central air conditioning in an existing nonresidential building taxable, and were separate design fees taxable?
The entire installation or upgrade charge was taxable, even in expanded space, but separately stated design and engineering charges were not taxable.
How did South Carolina classify coin-operated amusement machines and game tables for license tax under its 1990 guidance?
The ruling used the machine's function, payment method, free-play feature, and whether it was a physical for-profit game table. Historical fees were $25, $100, or $1,500, with specified physical table…
Could a South Carolina bingo operator price a multicard paper sheet so each card cost a fraction of a cent?
Yes. A sheet could produce a fractional-cent price per card, such as three cards for $1, if every card for that game had the same value. In that example, all cards had to be sold in sheets of three or…
How did Texas tax repair and maintenance contracts for bank vaults, safes, drive-in equipment, cameras, and alarms?
Repairs were fully taxable; qualifying real-property maintenance labor could be nontaxable, while camera and burglar-alarm work was generally taxable security service.
Were prescribed air-purification systems for allergy patients exempt from Texas sales tax?
Yes, when sold to an individual under the named practitioner's prescription; sales to doctors, hospitals, clinics, nursing homes, and other entities were taxable.
Did a school vending-machine contract signed before July 1, 1990 protect student purchases from the increased Texas sales-tax rate?
No. The vending operator sold to the students, not the school, so their purchases bore the increased rate and the operator collected it from them.
When could a nursery claim a Texas agricultural exemption for electricity used to irrigate pine trees?
Electricity could be exempt if the nursery fostered tree growth as an agricultural operation; mixed-use meters required over 50% exempt use and a certified study.
Could an equipment lessor accept a resale certificate from a customer using rented equipment to remodel nonresidential real property?
No. Equipment bought, rented, or leased for use in nonresidential repair or remodeling was taxable to the person using it, so the resale certificate was invalid.
Who owed Texas state and local use tax when a contractor bought taxable items out of state and had them shipped to Texas for use?
The contractor owed use tax on the purchase price. It paid a permitted supplier or self-reported uncollected state and local tax when the items were first used in Texas.
Was a city's separately stated $1 recycling fee taxable when charged with monthly garbage collection?
Yes. The recycling fee was taxable because collecting recycled items was treated as garbage or waste collection, whether or not the charge was separately stated.
Was remodeling exempt when a private company leased a privately owned building to perform a reimbursed service contract for a Texas agency?
No. The remodeling contract was taxable because it was between private taxable entities, the company leased the building, and its employees used the premises.
Was a fee for picking up cardboard for baling and resale taxable, and how was the later cardboard sale documented?
The pickup fee was taxable garbage collection. On sale to a shingle manufacturer, the recycler had to collect tax or accept a valid exemption certificate.
Were reimbursements between two restaurant corporations for shared employees' wages and payroll taxes subject to Texas sales tax?
It depended on the services performed. Taxable services made the full reimbursement taxable unless an employee-supply or qualifying intercorporate exemption applied.
Were Kansas sports league, tournament, admission, and fundraising receipts taxable in 1990?
Kansas taxed private league and tournament participation fees whether collected from individuals or teams. Gate admissions, concessions, merchandise, and fundraising sales were also taxable. Participa…
How did Texas apply sales tax to an electrical subcontract containing both taxable remodeling and new construction?
Remodeling charges were taxable but could be resold with valid certificates; new-construction treatment depended on whether the subcontract was separated or lump-sum.
Could a Texas tax-exempt organization buy health-club memberships without sales tax for children in its program?
Yes, if the organization itself paid for the memberships, they related to its exempt purpose, and it gave the seller a properly completed exemption certificate.
Is the sale or license of a specialized software program that the vendor analyzes and adapts for each customer subject to New York sales tax?
No — the software is exempt intangible property, so its sale and licenses are not taxable. Astrogamma Inc. licenses 'Fenics,' a specialized program that helps foreign-currency options traders compute …
Can a New York corporate franchise tax lien on a dissolved corporation's only asset be compromised (reduced) for a sale, when the property's appraised value is less than the tax owed?
Yes, down to the property's appraised value. Finger Lakes Realty Company Incorporated was dissolved by proclamation in 1967 and owed over $12,347.82 in accumulated franchise taxes, interest, and penal…
Is a Swiss nonprofit medical-research joint-stock company, federally tax-exempt under IRC section 501(c)(3) and dedicated entirely to charitable cancer research with no shareholder profit rights, exempt from New York's Article 9-A franchise tax simply because it has stock?
No, it's taxable. The Ludwig Institute for Cancer Research is a Swiss nonprofit joint-stock company devoted entirely to charitable cancer research, funded by an endowment, with fifty shares carrying o…
Was a bunker receipt enough to document Texas's sales-tax exemption for fuel consumed by a vessel operating exclusively in foreign or interstate commerce?
No. The fuel could qualify when consumed in a vessel operating exclusively in foreign or interstate commerce, but the purchaser had to give the supplier a valid, complete exemption certificate. The ce…
When were interior-design drawings taxable as graphic arts rather than nontaxable decorating services?
Drawings resulting from decorating services were not taxable; plans created for sale or drawn to another person's specifications were taxable.
Was Texas tax due when a Texas watch-repair seller subcontracted the actual repair work to a business in New York?
Yes. The Texas shop remained the seller to the customer and delivered the repaired watch in Texas, although it could buy the subcontracted repair for resale.
Were a paper distributor's cutting and freight charges taxable when the customer bought the paper for resale and supplied a valid resale certificate?
Cutting and freight were taxable components of the paper's selling price, but the distributor did not collect tax when the customer gave a valid, properly completed resale certificate covering the res…
Was providing trailer-mounted searchlights with operators a taxable equipment rental or a nontaxable advertising service?
It was a nontaxable advertising service. The business did not rent units without operators, its staff delivered, set up, adjusted, started, directed, and secured the lights, and customer control did n…
Was a city's charge for slicing waste tires taxable when the city also removed them to a private landfill, and what if customers brought tires directly to a landfill for slicing?
Tire slicing by itself was nontaxable, but slicing performed as part of taxable waste removal made the entire charge taxable. If the slicing machinery were at the landfill and customers simply brought…
Which long-distance telecommunications charges were taxable, and could cable-television companies buy taxable intrastate transmissions for resale?
Interstate and international long-distance transmissions were exempt when they were not both originated from and billed to a Texas number or address. Services originating in Texas and billed to a Texa…
How did Texas tax rented water-conditioning systems, salt used in the service, sold-and-installed systems, and scheduled maintenance in existing nonresidential buildings?
The water-conditioning service was nontaxable, but the provider owed tax when buying all rental equipment and consumable materials, including salt. Selling and installing a permanent system in an exis…
Was a city's environmental protection fee on residential garbage-collection bills subject to Texas sales tax?
Yes, when tied to a separately billed garbage-collection charge; the letter said no tax was due when the city combined it with nontaxable services without itemizing garbage collection.
Which fruit-juice and bottled-water products did Texas treat as exempt, and when did dilution or flavoring make them taxable?
One-hundred-percent fruit juice remained exempt when calcium-fortified or restored from concentrate to original single strength. Juice diluted beyond single strength was taxable. Unflavored water was …
Was Texas tax due when a stock item held in Texas inventory for resale was shipped to an Illinois sales office and given to an Illinois prospect as a sample?
No. The Comptroller treated the item as held for resale before it was shipped out of Texas. The Illinois salesman ordered the normal stock item from inventory, received it at the Illinois office, and …
Were home-dialysis machines and mixed supply kits exempt from Texas sales tax?
Machines and operating supplies were exempt; mixed kits followed the predominant cost, and therapeutic items required a prescription.
Did Texas waive use tax for a Texas-resident service member registering a vehicle while stationed elsewhere?
No. The 1990 letter found no exemption when the Texas-resident service member planned to register in Texas while returning to a New Mexico duty station. The historical 6% use tax was due at Texas titl…
How were a city's separately billed new water taps, sewer taps, and driveways taxed, and how did replacement taps and culverts differ at residential and nonresidential locations?
For new improvements under separated billing, incorporated materials were taxable and labor was not. Replacing water or sewer taps, or installing a culvert in an existing nonresidential driveway, was …
Could a company use its multistate sales-tax exemption certificate in Texas, and when would it need a Texas sales-tax permit?
The enclosed multistate certificate was not acceptable as either a Texas resale or exemption certificate. The Comptroller could not decide the permit question without more facts, but said a company pe…
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