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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Does a company that fabricates and installs gas distribution pipelines qualify as a 'fabricator' for the Texas manufacturing exemption?
No. The Comptroller ruled that a company that fabricates and then installs gas distribution pipelines as an improvement to real property is a contractor, not a fabricator/manufacturer — so it does…
Is a dragline service that clears silt from a farm or ranch tail water pit subject to Texas sales tax?
Yes — a dragline service rented with an operator to remove silt from a farm or ranch tail water pit is taxable. The Comptroller treated the tail water pit as real property and the farm or ranch as…
Did car-wash owners assume a failed sublessee's liabilities by paying back rent when they retook the premises?
No. The owners remained liable for the rent under their prime lease and personal guarantee despite the sublease. Paying their own obligation was not consideration or assumption of the sublessee's…
Did a nonresident estate owe Florida estate tax on unencumbered Florida property passing to a spouse by survivorship and marital deduction?
Yes. Because the Florida property was included in the federal gross estate, its value entered both the Florida-property numerator and total-gross-estate denominator of the nonresident formula…
Were retail sales of firewood subject to California sales tax?
Yes. Firewood was tangible personal property, and the Board identified no statutory sales-tax exemption for its retail sale.
Which reviewed drink powders and supplement products were taxable under California's food-product rule?
Calorie-control products and products labeled or designed as nutrient supplements were taxable; Aloe Beta Lemon Drink remained exempt because it made no special claims.
Is sales tax owed on the flyers and promotional items (pens, magnets, calendars) stuffed into free door-to-door advertising bags?
Yes, partially. Sales tax is due on all supplies, materials, equipment, and services used to produce the advertising flyers stuffed into the bags. The advertisers themselves owe tax on pens,…
Does a home business owe Texas sales tax on computerized calling services, like automated appointment reminders, wellness check-in calls, or community information lines?
It depends on the specific service. The Comptroller found automated wellness check-in calls (for homebound individuals) and automated calls to children not taxable, but ruled that automated patient…
Is a baggage protection wrapping service offered to airline passengers at the airport subject to Texas sales tax?
No — the Comptroller ruled this baggage protection service (wrapping a passenger's luggage in a specially designed plastic bag at the airport) is a non-taxable service. However, the company still…
Does sales tax or hotel occupancy tax apply to a timeshare condominium association's maintenance fees, bonus-time program, and repair/maintenance purchases?
The timeshare association's annual maintenance fee itself is not taxed (the association is the purchaser of the goods/services, and owners are just reimbursing it), and the "bonus time" program…
How many one-day tax-free sales can a 501(c)(3), (4), (8), (10), or (19) nonprofit and its chapters hold each year in Texas?
A nonprofit organization exempt as religious, charitable, or educational (and, as of August 30, 1993, one classified by the IRS as 501(c)(3), (4), (8), (10), or (19)) may hold one one-day tax-free…
Which South Carolina bodies counted as legislative agencies for the temporary document-copy sales-tax exemption in RR 94-1?
RR 94-1 limited the temporary exemption to agencies under the South Carolina Legislature's direct control, such as the Senate, House, joint committees, Legislative Audit Council, Legislative…
Is a service that signs homeowners up for accelerated mortgage payment drafting subject to Texas sales tax?
No — the Comptroller ruled that this mortgage payment service is not a taxable service, based on the facts presented. The taxpayer was an independent agent who signed homeowners up for a Florida…
Is a consultant's fee for helping clients choose electrical equipment and find suppliers subject to Texas sales tax?
It depends on what the fee covers. Selling information gathered for a client about the availability of parts, pricing, and shipping is a taxable information service under Rule 3.342, even though it…
Are SEC insider-trading disgorgement funds -- like the Boesky, Siegal, and Kidder Peabody funds -- subject to New York corporate franchise tax under Article 9-A or personal income tax under Article 22, and are the individual claimants or original defendants separately taxed on the funds' earnings?
No entity-level New York tax applies to the Disgorgement Funds themselves. Because the receiver merely holds court-restricted investments and distributes them under an SEC-approved plan with no…
When were marketing-strategy reports and related expenses separate nontaxable services rather than part of a taxable brochure sale?
A separately billed text-only report prepared before a production contract or client approval was nontaxable; costs tied to taxable final materials remained taxable.
Were temporary patient temperature sensors exempt medicines because they attached to or entered the body?
No. California taxed all described sensors as diagnostic devices, and temporary insertion did not satisfy the permanent-implant exemption.
When were marketing-strategy reports and related expenses nontaxable even if the consultant also produced brochures?
A text-only strategy report could be a nontaxable service if separately billed before approval of final materials; brochure-production costs remained taxable.
Is a 'For Sale By Owners' list compiled and faxed weekly to real estate companies for a fee subject to Texas sales tax?
Yes — compiling a weekly list of 'For Sale by Owners' homes and faxing it to real estate companies for a $14.99 weekly fee is a taxable information service under Texas sales tax law. Information…
Does a company that fetches and delivers police accident reports to insurance companies owe Texas sales tax on those charges?
It depends on the charge. No sales tax is due on the amount a company passes through to an insurance company to cover what it paid the police department for an accident report (no markup). But sales…
Did herbal-food products lose California's food exemption because new FDA rules prevented nutritive-value claims?
No. The 1994 opinion exempted the products because California did not require nutritive claims and the supplied label did not call them supplements or adjuncts.
Are repair and replacement parts for farm trucks and trailers exempt from Texas sales tax if the vehicles have farm license plates?
It depends on whether the vehicle is licensed for highway use. Repair and replacement parts for unlicensed vehicles used exclusively on farms or ranches are exempt from Texas sales tax. Repair and…
Can a farm or ranch buyer use an agricultural exemption certificate to buy an ATV in Texas without paying sales tax upfront?
Yes, starting February 1, 1994 — the Comptroller told motorcycle/ATV dealers they may accept an agricultural exemption certificate for a farm-use ATV purchase instead of collecting tax and sending…
In 1984, a state energy authority issued pollution-control bonds for our nuclear plant, backed by our first mortgage bonds. Now we want to refinance those bonds at today's lower interest rates, which requires amending and restating our mortgage bonds and recording a new supplemental mortgage indenture. Is that refinancing exempt from mortgage recording tax, and does restating the bonds count as new debt?
Exempt, and restating the bonds isn't treated as new debt for MRT purposes. This is the origin ruling establishing mortgage recording tax exemption for Niagara Mohawk Power Corporation's financing…
Were parts sold by a California repairer to out-of-state warranty companies taxable when repairs occurred in California?
Yes for optional-warranty customers, who consumed the parts; no for mandatory-warranty customers buying them for resale. Government ownership did not change that result.
Were parts sold by a California third-party repairer taxable when out-of-state customers hired it to fulfill maintenance agreements?
Yes for optional agreements because the customer was the parts consumer; no for mandatory agreements when the customer bought the parts for resale.
Do a school organization's two allowed one-day tax-free sales reset each school year, or are they limited to one calendar year?
The two one-day tax-free sale exemption applies per calendar year (January 1 through December 31), not per school year. If a PTO already held a tax-free sale earlier in the same calendar year (even…
Does a self-employed house cleaner with no employees need a Texas sales tax permit?
No — a self-employed individual with no employees who cleans only residential homes is treated as an employee of the homeowner under Texas Tax Code Sec. 151.057, so no sales tax permit is needed and…
Did Florida's withdrawn 1994 ruling include self-insured health claims and administrative charges in insurance premium tax?
This ruling was withdrawn by TAA 94B8-002 on August 18, 1994. Before withdrawal, it had treated the city's administrative fee, risk-assumption charge, stop-loss premium components, and incurred…
Was an Oregon-to-California flight to collect named business passengers an aircraft's first use outside California?
Yes, on the stated assumptions, if the flight collected specific passengers for a specific destination and Oregon delivery had a real business purpose.
Was a Department of Defense contractor broadly exempt from California tax on everything it bought or sold?
No. Contractor status mattered only for actual United States contracts; consumed property remained taxable, while explicit pre-use title passage could support resale treatment.
Were retail sales made by or to Southern California public housing authorities exempt because the authorities were public bodies?
No. California treated the authorities as political subdivisions included in section 6005 and said retail sales both by and to them were taxable.
Were annual and administrative membership fees taxable when members received professional-service access and some incidental software and reports?
No, under the stated assumptions. Members joined for professional services, the supplied property had minimal value, and the organization was its consumer.
How did California tax seminar instruction, training materials, and temporary use of master printing plates?
Classroom instruction could be nontaxable, but separately charged training materials were taxable and every charge for the custom master plates was taxable rental income.
Was writing advertising and brochure text taxable when the author delivered only typed words or a computer disk and someone else created the artwork?
No. Original text without graphics was a nontaxable author service, but artwork and extra copies of the original work would be taxable.
Were a copywriter's charges taxable when the writer delivered original text by typed page or computer disk but did no layout, graphics, or finished artwork?
No. Text-only original copy was an author's nontaxable service even when delivered on a disk. Charges became taxable for copy including graphics or artwork, or for reproductions of the original work.
Was a three-percent discount on receivables sold without further recourse a deductible bad debt?
No. The recommendation treated the transfer as financing, the discount as interest expense, and neither fact as a worthless-account deduction.
Does a nonprofit hospital's school of nursing owe sales tax on textbooks and uniforms sold to students who pay with financial-aid loan funds?
Yes — the textbooks and uniforms a nonprofit hospital's nursing school sells to its students are taxable, even though students pay for them using "financial aid" that is actually a loan under a…
Is producing a sonogram video tape for expectant mothers subject to Texas sales tax?
Yes — the total charge for producing a sonogram video tape of expectant mothers is taxable. The business may, however, purchase the blank video cassettes tax free by issuing a resale certificate to…
After a Texas sales tax audit becomes final, how long do I have to claim a credit for resale or exemption certificates, and does the 60-day letter cut that off?
A special six-month period to claim credits or refunds begins on the date the audit determination becomes final (Sec. 111.104(c)(3)), even for transactions where the standard four-year limitations…
If I pick up a government record (like an accident report) for a client and bill them for the record's cost plus my own labor fee, is my labor fee taxable?
Yes, your labor/pickup fee is taxable, but the government agency's own charge for the record itself is not — as long as you separately state the two amounts on your bill. The Comptroller ruled that…
If a customer buys an aircraft under an exemption certificate for use outside Texas, does having it refurbished in Texas before removal make the aircraft taxable?
No. The Comptroller confirmed that an aircraft purchased under an exemption certificate for use exclusively outside Texas does not become taxable just because the customer has it refurbished or…
Who owed tax on color separations, filmwork, and printing plates retained by a printer for customer jobs?
A taxable customer sale occurred only if a preexisting agreement explicitly transferred title in Florida and the printer separately billed at least cost; then the printer collected tax and could buy…
How did Florida tax multistate campground memberships sold by a Florida preserve?
They were taxable transient rentals because the contracts granted overnight accommodations. The Florida preserve had to tax the full initial fee and later dues without multistate proration,…
How did California tax percentage and additional delivery charges on orders containing taxable and nontaxable food products?
Delivery followed the related food sale: taxable before-sale delivery for taxable items, nontaxable for exempt items, and separately allocated on mixed orders.
Were drawings prepared from architects', engineers', or other clients' specifications taxable architectural services or sales of tangible property?
They were taxable sales of drawings, not architectural services; only qualifying plans prepared under the statutory exception described could receive service treatment.
Did California settle a tax debt by cashing a smaller check marked as payment in full?
No. Staff said tax obligations arise by statute, not contract, so a restrictive endorsement could not create an unauthorized settlement; statutory settlement procedures controlled.
Did a payment-in-full endorsement bind California when the Board deposited a taxpayer's partial-payment check?
No. Staff said tax collection was statutory rather than contractual, so depositing the check could not create a compromise outside the authorized settlement programs.
Which station-purchase documents under a confirmed Chapter 11 plan escaped Florida documentary stamp and intangible taxes?
The mortgage, security agreement, financing statement, and rent assignment were exempt because they were plan transfer documents and a debtor was a party. Section 1146(c) generally did not cover the…
How did Florida value fund shares invested through underlying tax-free portfolios for historical intangible-tax purposes?
The funds and portfolios themselves lacked Florida commercial domicile. Shareholders were fully exempt when the fund held only an interest in a portfolio containing solely exempt government…
How did Florida's historical intangible tax treat an out-of-state business trust, its exempt-asset fund shares, and municipal lease obligations?
Florida confirmed that the fund assets lacked Florida taxable situs, shares were fully exempt when the prior year-end portfolio held only Florida, federal, and cash-equivalent exempt assets, and…
Were 25-cent gum and candy sales exempt when a commercial vendor's machines displayed a qualified charity's sponsorship message?
Yes. As of the amended vendor agreement, the machines were sponsored by an organization qualified under section 501(c)(3), so gum and candy sales for 25 cents or less qualified for the vending…
Did an out-of-state contractor need a California seller's permit solely to install customer-provided signs and furnish minor construction materials?
No under the opinion's assumptions: the customer supplied fixture signs, the contractor performed no prefabrication, and anything it furnished qualified as consumed material. Prefabrication or…
Did an out-of-state contractor need a California seller's permit when it installed customer-provided sign fixtures and bought only incidental construction materials?
No, if it performed no pre-installation fabrication and furnished only materials it consumed. Taxable sign fabrication or furnishing fixtures or equipment required a permit.
New York Advisory Opinion TSB-A-94(1)I: Are distributions from the federal Thrift Savings Plan (TSP) that petitioner Joseph T. DiGianni receives exempt from New York State income tax; if not, is the first $20,000 tax-free whether taken as a monthly annuity or a lump sum; and if the distributions are taxable, is the portion of earnings from the TSP's 'G Fund' (invested in U.S. government bonds) tax-free as tax-exempt interest?
It depends on which federal retirement system covers the employee. For a FERS employee, TSP distributions are treated as part of the employee's pension itself, so they qualify for New York's full…
Were semiconductor carrier tapes and reels exempt containers or merely incidental to a service when used to feed chips into assembly machines?
No. The tapes and reels were taxable tangible manufacturing aids, not exempt nonreturnable containers, and chip placement and inspection were incidental to their sale.
Could a photo finisher avoid California tax on an internegative and print shipped to an out-of-state customer after using the internegative to make the print?
The outbound print and internegative sale could qualify if the contract, shipment method and records met the interstate rules, but using the internegative in California first made its purchase or…
Could repair parts installed on government-, contractor-, or lessor-owned vehicles be sold for resale to the United States under a general accelerated-title clause?
Yes when the federal contract covered those parts before use and the parties accounted for them that way; otherwise the contractor consumed the parts.
Was an HVAC control-system provider a construction contractor when it selected, assembled, programmed, and supplied controls but only supervised another contractor's installation?
No. Without a contractual duty to install, it sold tangible personal property, and tax applied to the full charge without deduction for engineering or programming work.
Are financial-information publications about bond ratings exempt from Texas sales tax as 'magazines'?
No. The Comptroller ruled that four publications providing current financial information on bond ratings did not qualify for the magazine exemption. Under Sec. 151.320(b), a 'magazine' does not…
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