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.
One month after getting a ruling on our IDA condo conveyance-leaseback structure for our tenant's financing benefits, we realized the initial condominium units will actually be conveyed to the IDA in phases over time as construction is completed, and we want the ruling to also cover our affiliates, nominees, successors, and assigns. Does this refined, phased structure change the tax-exempt conclusions?
Still exempt -- the phasing doesn't change the answer. This opinion refines TSB-A-93(1)R (issued a month earlier on the same petition) to reflect that the condominium units at One New York Plaza…
Did a nonprofit make taxable sales when it gave donated red ribbons to contributors and noncontributors?
No. The supporter consumed and paid tax on the materials, the nonprofit bought nothing, and ribbons were available without a contribution.
Does a company owe Texas sales tax when it swaps in identical replacement computer equipment to relocate a customer's data center, then rents back the old equipment during the transition?
Yes. Shipping identical replacement equipment to a customer's new location under a computer 'swap' program is a taxable sale of equipment. If the customer's old equipment is taken as a trade-in, tax…
If I permanently move out of New York but keep my old New York home and still spend 45 to 90 days a year there, has my domicile changed to my new state?
The Department did not decide. Whether Kenneth Springer changed his domicile from New York to Florida is a question of fact, and an Advisory Opinion can only apply the law to given facts, not…
Was use tax due when a business unable to identify resale versus self-use items at purchase later withdrew ex-tax inventory for its own out-of-state operations?
No for its own out-of-state consumption under the modified advice. California consumption and donations to out-of-state entities remained taxable.
Can a broker operate an export certification satellite office inside Mexico instead of within the United States?
No. The Comptroller's office denied the request, explaining that an export certification business must be conducted from a location inside the United States because state regulators cannot freely…
If a cellular phone retailer charges a customer a 'deactivation' or 'lost commission' fee for canceling service early, is that fee taxable as part of the phone's sales price?
Yes. The Comptroller ruled that the deactivation/lost-commission fee is part of the phone's selling price, so the retailer must collect sales tax on it, just as it does on the initial discounted…
Does a machine used to rebuild torque converters qualify for the sales tax production exemption and the Article 9-A investment tax credit?
Yes, both. Rebuilding worn torque converters -- cutting open the old unit, replacing worn parts, and reassembling and testing a finished converter -- is the production of goods by manufacturing or…
Were loose utility bill inserts exempt periodicals or printed sales messages when the printer delivered them to the utility?
No. They were handbills or advertising-heavy notices, delivery to the buyer failed the printed-message rule, and the certificate covered only a separate monthly publication.
Did loose utility bill inserts qualify as periodicals or printed sales messages, and could the printer rely on a certificate covering a different monthly publication?
No. The inserts were handbills or independent notices, exceeded the advertising limit, were delivered to the buyer, and were outside the certificate naming the separate publication.
If a contractor completely demolishes a sidewalk and rebuilds a new one on the same site, is that new construction or repair for Texas sales tax purposes?
New construction. The Comptroller ruled that completely demolishing an existing sidewalk and rebuilding a new one on the same site is treated as new construction labor. Only demolishing and…
When a cable TV company hires a third party to collect past-due bills and to pick up converter boxes from delinquent accounts, are those third-party services taxable 'debt collection services'?
Yes to both. This internal Comptroller memo concludes that a third party hired by a cable TV company to collect past-due accounts is providing a taxable 'debt collection service' under Tax Code…
Can an out-of-state seller who leases equipment in Texas get credit against Texas sales/use tax for sales tax it paid to another state on that same equipment?
No. This is an internal Comptroller memo explaining that an out-of-state seller cannot apply for a refund or credit against Texas tax collected on leased equipment for tax it separately paid to…
If I default on a layaway purchase and the store resells the item, do I get taxed twice when I finally pay it off?
No. Texas sales tax applies only when title or possession of the item actually transfers, so a layaway sale that falls through before pickup was never a taxable sale in the first place. When the…
As an independent distributor selling tablets for a direct sales/multi-level marketing company in Texas, do I owe tax on the products I buy from the company to resell?
Yes. The Comptroller ruled that the tablets sold through this direct sales organization are taxable in Texas, and as an independent distributor you must pay tax on your purchase of the product from…
How did RR 93-3 apply South Carolina's historical bingo-license domicile and separate-organization requirements?
A reinstated corporation's temporary dissolution did not interrupt its three-year South Carolina domicile, but an organization not yet reinstated could not qualify. Related churches or auxiliaries…
How did RR 93-2 tax racing gasoline and other racing fuels in South Carolina?
High-octane racing gasoline was taxable under Chapter 27. Other racing fuel was taxable under Chapter 29 when used in a vehicle that could be licensed for highway use, but not when used in a racing…
What did South Carolina announce about public access to Tax Commission decisions through 1992?
Sanitized Commission Decisions and an index covering 1987 through 1992 were available for public review at the University of South Carolina School of Law Library and Commission district offices. The…
Were auction sales for the FDIC or RTC taxable when those incorporated federal entities acted as conservator or receiver?
Role controlled. Auctioneers collected use tax on sales for incorporated agencies acting as conservators, notwithstanding an exempt number. But the later memorandum said FDIC and RTC asserted…
Could Texas use tax on an out-of-state leased vehicle entering Texas be calculated on depreciated value?
No. The use-tax base was the total consideration paid in the out-of-state sale, defined as the vehicle's cost. The Tax Administration Division said a legislative change would be required to use…
Does machinery used to cut, tie, and close meat casings for meat companies qualify for the Article 9-A investment tax credit?
Yes, if the use tests are met. A company that takes reel stock of cellulose or fibrous casings, cuts it to length, drills holes, and clips, ties, and closes the casings for meat companies is engaged…
How did Florida value common shares of a business trust holding a mix of exempt and taxable securities?
Common shares were fully exempt when the portfolio held only exempt assets. With taxable securities at year-end, shares were taxable in proportion to taxable assets, while the federal-obligation…
Which credit extensions and interbank placements of a foreign bank with Florida offices had Florida intangible-tax situs?
Credit extensions to Florida residents were taxable, while loans to nonresidents were not. Placements of excess funds at non-Florida banks were exempt because they lacked Florida situs and qualified…
Did a deed moving encumbered land between trustees of the same land trust owe more than minimum documentary stamp tax?
This ruling said no because the trust and beneficiaries stayed the same and no consideration changed hands, but the official source says TAA 93B4-001R superseded it on April 1, 1993.
Did Florida's electrical-generation machinery exemption cover qualifying equipment leased with an entire cogeneration plant?
Yes, but only for separately itemized qualifying machinery and equipment with the required notarized use affidavit. Real estate and water-heating equipment remained taxable; otherwise the whole…
What public water supply fee applied to Kansas retail water sales beginning January 1, 1993?
Beginning January 1, 1993, Kansas imposed a public water supply fee of $0.002 per 1,000 gallons of water sold at retail. The new fee was added to the existing $0.03-per-1,000-gallon water protection…
Were charges for scanning legal documents onto disks excluded when the provider also created a searchable index?
Yes, except for duplicate copies. Creating the word index was customer-data processing, making the combined copying-and-processing transaction nontaxable.
If we sell oil/gas equipment to overseas customers FOB our Texas plant or FOB an export packer, do we owe Texas sales tax, and when do we have to collect it?
Yes, in most cases. Because title to the equipment passes in Texas under "FOB plant" or "FOB export packer" shipping terms, the sale is a taxable Texas sale, and the seller must collect Texas sales…
Can a grocery store chain that prints its own newspaper inserts in its own print shop get a refund of the sales tax it paid on the newsprint and ink?
No. The Comptroller ruled that a grocery store chain printing its own newspaper inserts in its own print shop is not entitled to a refund of sales tax paid on the newsprint and ink. The Sec.…
Can a paging company give its phone company a resale certificate for the phone exchange numbers and trunk lines it leases and then passes on to its paging customers?
Yes. The Comptroller confirmed that a paging service provider that purchases or leases phone exchange numbers and trunk lines from the local telephone company, and then assigns those numbers to its…
If my business buys promotional giveaway items like calendars, matchbooks, or rain gauges to hand out for advertising, do I owe Texas sales tax on them?
Yes. The Texas Comptroller confirmed that a business buying tangible items such as rain gauges, imprinted calendars, or matchbooks to give away as promotional items must pay sales tax on those…
Can aircraft flights patrolling powerlines or pipelines count as common carriage for California's aircraft exemption?
Only when the flight actually transports a person or property for hire and meets the other common-carrier rules. Merely flying the line without transporting either does not qualify.
If a cable company rebuilds and upgrades its existing cable plant (like boosting channel capacity from 36 to 54 channels), is that taxed as new construction or as remodeling of real property?
It's remodeling, not new construction. This internal Comptroller memo concludes that rebuilding or upgrading an existing cable TV plant -- including replacing wire, poles, and house drops, or…
How did Florida's revised ruling determine the exempt share value of an out-of-state business trust?
The trust itself was exempt. Direct federal and territorial obligations were removed from share value; the remaining value was exempt only if all remaining assets were exempt, and year-end was the…
Were insurance-claims investigations performed by a licensed investigative company subject to Florida sales tax?
No when performed as insurance claims-adjustment investigations for insurance companies, agents, brokers, or service companies. Licensable private investigations for other customers were taxable.
Was an equity club's $10,000 member assessment taxable when members received noninterest-bearing bonds?
Yes. The club recorded the assessment as additional paid-in capital rather than a liability, and repayment of the bond's face amount was uncertain, so it was not an exempt refundable deposit.
Did Florida discretionary sales surtax apply to microfilm delivered to a buyer in a surtax county from a dealer in a nonsurtax county?
No under the 1993 law, because the selling dealer was in a county without surtax. The source warns that a January 1, 1994 law change directly affected this issue.
Could a company combine 14 used-computer dispositions from one repossession and treat its later $700,000 asset sale as occasional?
No. Staff ultimately counted 15 used-computer sales averaging more than $1,000 within one year, treated the $700,000 asset sale as part of that series, and denied occasional-sale treatment.
Could a buyer title a vehicle tax-free before planned disability-related modifications were completed?
Yes. The buyer could claim the historical exemption before completion by providing a written statement identifying the modification, when it would occur, and where it would be performed. The work…
If a software dealer earns a commission on a software vendor's sale and then separately installs and maintains that software for the buyer, is the dealer's installation and maintenance work taxed as part of the software sale?
No. This internal Comptroller memo concludes that a dealer's separate agreement to install and maintain software is treated as a transaction unrelated to the software vendor's sale, and is not…
Does licensing software to Texas customers to access an out-of-state database service create Texas franchise tax nexus, even with no salespeople in the state?
Yes. The Comptroller ruled that licensing software to Texas customers so they can access an out-of-state gateway/database service creates substantial nexus with Texas for franchise tax purposes,…
How did Texas's internal memo treat vehicle transfers and refunds involving a living trust with the same owner name?
No tax was due when an individual transferred a vehicle to a living trust bearing that same person's name because the memo found no sale or ownership change. A trust could also claim the historical…
Does the Texas Workers' Compensation Insurance Facility owe sales tax on the debt collection services it buys to recover unpaid premiums?
Yes. The Comptroller ruled on January 26, 1993 that the Facility's purchases of debt collection services used to collect delinquent premiums are taxable. The Facility's statutory exemption (Texas…
Is sales tax due on cleaning products and supplies used to raise emus on a farm?
It depends on the product. The Comptroller ruled that dishwashing crystals, laundry detergent, and two multi-purpose cleaners used exclusively on the farm to sterilize drinking containers, wash…
Can a customs broker's exportation certificate list extra items on the back of the form or on an attached addendum sheet, and will a cash register receipt work as export documentation?
A cash register receipt is not enough by itself — under Comptroller Rule 3.323(d)(4), export documentation must include a detailed, specific description of the items purchased so an auditor can tie…
Is the sale and installation of custom interior window shutters a tax-exempt capital improvement to real property, or a taxable sale?
Taxable. The Department ruled that custom interior window shutters are like blinds and draperies, not a capital improvement, so their sale and installation stays subject to sales tax.
Which pieces of a salt mine's equipment — conveyors, elevators, screening, mining machinery, roof bolts, and power-distribution gear — qualify for New York's production-machinery sales tax exemption?
Conveyors, elevators, screening systems, and salt-mining machinery qualify for the § 1115(a)(12) production exemption. Roof bolts and general power-distribution equipment (substations, transformers,…
How does New York sales tax apply to an outsourced facilities-management provider's mailroom, printing, copying, fax, filing, delivery, and related services, and to its supplies and equipment?
It varies by service. Printing, copying, imprinting, mailing-list maintenance, fax, and sales of copies or supplies are taxable; pure clerical, mailing, shipping, delivery, filing, and messenger…
Did Florida's original ruling exempt an out-of-state municipal bond fund and its shares under the former intangible tax?
Yes, it answered all three questions affirmatively, but the official source says revised TAA 93C2-004R superseded this original ruling on February 24, 1993.
Were meals sold directly to students by a school's outside food-service operator exempt as meals sold by the school?
No. The operator set prices and treated customer receipts as its own sales, so it—not the school—sold the meals and the student-meal exemption did not apply.
A Texas investigation firm did a traffic-accident investigation in Mexico for a California client (and separately does investigations for maquilas in Juarez) — is Texas sales tax due on the investigation service?
No Texas tax is due on an investigation service if both the purchaser and the subject of the investigation are outside Texas, the final report is delivered outside Texas, and the firm obtains an…
Can a contractor building a day-care center on an Indian reservation use the tribe's sales-tax exemption to buy construction materials tax-free?
No. The Comptroller ruled that a contractor building an on-reservation day-care center for a Texas Indian tribe cannot claim the tribe's own tax exemption when buying materials. Instead, if the…
Can a general contractor allocate a lump-sum contract between new construction and nonresidential remodeling based on square footage, and what records are needed to back that up?
Yes, but only for labor. A Texas general contractor may use square footage to allocate the labor portion of a contract between taxable nonresidential remodeling and (largely nontaxable) new…
Were charges for creating a manuscript index taxable when the contractor delivered one floppy disk, and what about related management and messenger fees?
No. Indexing was a service and one delivered disk was incidental; the official annotation also treated connected management and messenger charges as nontaxable.
Did a nonresident decedent's estate owe Florida estate tax on a Florida trust holding only intangible property?
No, because the decedent's residence state reciprocally exempted nonresident estates owning only intangible property, and the estate held no Florida real or tangible personal property.
Was travel time between a custom cabinet shop and the job site a nontaxable installation charge?
It depended on cabinet classification and contract form. For fixtures, travel could be installation only when its sole purpose was installation; material-contract charges were already nontaxable.
Is a forensic engineer's accident-investigation work for insurance companies and attorneys taxable as an 'insurance service' under Texas sales tax law, even though attorney legal fees themselves are not taxable?
Yes. Under Rule 3.355, a professional engineer's work investigating accidents to help determine whether an insurance claim should be paid is a taxable 'insurance service,' regardless of the…
How did California tax a cosmetics manufacturer's sales through independent distributors, including resale certificates, personal-use products, and membership fees?
Valid permitted resellers reported their retail sales; sales to unpermitted or consuming distributors were taxed at the manufacturer's price. After written section 6015 notice, the manufacturer owed…
How did California tax artwork bought under resale certificates and transferred to an affiliate for reproduction?
The transfer was a taxable lease, with all royalties and license fees included in rent. Photographing the art instead created taxable use plus a taxable negative sale.
Was a cosmetics distributor's initial membership fee taxable when it included a manual, brochure, and videotape?
Yes. The fee purchased tangible materials; a renewal fee without property was nontaxable only if it met all three conditions stated in the letter.
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.