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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Is waste and garbage collection service provided to an ocean-going vessel operating under a foreign flag exempt from Texas sales tax?
No. The Comptroller ruled that waste collection and disposal services performed for ocean-going vessels in Texas are not exempt from sales tax. The Tax Code's exemptions for a vessel's component…
Were a professional association and its landlord partnership related for Florida rental-tax purposes when the owners' spouses also held partnership interests?
No. Each professional owned one-third of the association, but the three spouses also owned partnership interests and owned no association stock. That ownership-and-control difference meant the…
Were standardized monthly county real-estate reports nontaxable information services, taxable tangible property, or exempt subscription periodicals?
Paper or disk reports were property sales but could qualify as mailed periodicals after November 1, 1992; electronic delivery was nontaxable.
Is infrared inspection of industrial furnace linings taxable, and is refractory brick sold to repair a kiln exempt from Texas sales tax?
The Comptroller ruled that infrared inspection service to check the condition of refractory (heat-resistant) linings inside boilers, furnaces, and kilns is a nontaxable service. Separately,…
If a vending-machine or amusement-device company gets a monthly credit memo from its distributor for old machines it turns in, and that credit is applied against its account and later offset against new machine purchases, does that count as a tax-free trade-in?
No. This internal Comptroller memo concludes that turning in a used cigarette or video game machine to a distributor for an account credit, later offset against a separate purchase, does not qualify…
Does a rehabilitation, drug/alcohol treatment, or psychiatric center qualify for Texas's residential exemption on natural gas and electricity sales tax?
No. The Comptroller held that a rehabilitation center (Rio Vista Rehabilitation Center) is not "residential" for purposes of the Texas natural gas and electricity sales tax exemption, because it is…
How did South Carolina Revenue Ruling 92-13 treat corporate dividends received from foreign subsidiaries after the U.S. Supreme Court's Kraft decision?
The historical ruling treated foreign dividends like domestic dividends to avoid unconstitutional discrimination under the Foreign Commerce Clause. A corporation could reduce federal taxable income…
If we perform real property services at a bank building the bank partly uses itself and partly rents out, are we a 'property management company' under Texas Rule 3.356?
Not for that property. Under Rule 3.356(a)(6), a person performing taxable services at a property held by the owner for a purpose other than rental — such as a bank using its own building for its…
If I rent out roll-off garbage containers and charge a $50 setup fee, is the whole charge taxable, and which city's local sales tax applies?
Yes, the entire charge is taxable, including the $50 setup fee to place the roll-off container. If the container comes with garbage collection service, local sales tax is based on where the garbage…
Was a California sale of spare parts to Canada's defence department exempt because the seller also happened to be a United States contractor?
No. The seller's unrelated federal-contractor status did not matter, possession transferred in California, and the source found no Canadian-government exemption.
How did Texas determine the rental-tax rate for fixed-term, open-ended, and renewed vehicle contracts?
A single contract specifying more than 30 days received the historical longer-term rate. A 1-to-30-day contract received the short-term rate. If the contract stated no term, it was treated as…
Texas Letter Ruling 9212L1211A13: Contact Lens Care Products
Prescription contact lenses are exempt from Texas sales tax and need no exemption certificate. Lens solutions and carrying cases are taxable, except that a disinfective solution sold as part of a…
Texas Letter Ruling 9212685L: Unjust Enrichment/Error Tax — Collected From Customer — Cannot Be Retained By Or Refunded To Retailer/Contractor — Must Be Remitted To State Or Refunded To Customers
If a lump-sum contractor marks a contract 'Inc' in the tax block, the Comptroller treats that as proof tax was collected from the customer, so the contractor cannot keep that money or use it to…
Does operating a Kansas controlled shooting area automatically prevent the land from receiving agricultural-use classification, and how are supporting buildings classified?
No. Establishing a controlled shooting area does not automatically disqualify the parcel from agricultural-use classification. The land is classified according to its current predominant use.…
When a Kansas deed is recorded, whose name and address should appear on the real-property assessment and tax rolls, and does a November cutoff apply?
The county clerk should update the real-property assessment and tax rolls to show the grantee, or the grantee's designee, and the supplied mailing address after a conveyance is recorded. The…
Texas Letter Ruling 9211L1211C11: Electronic Bulletin Boards Service — Access To Technical/Shareware Library And Ability To Leave/Retrieve Messages/Chat 'Live'/Trade Goods
Yes. The Texas Comptroller ruled that membership fees charged for access to a computer bulletin board service (BBS) -- letting users chat live, access databases, and download software -- are taxable…
Texas Letter Ruling 9211L1211B11: Energy Management/Control System — Installed To Existing Heating And Air Conditioning Systems
Taxable. The Comptroller ruled that selling and installing a computerized energy management/control system as a replacement and upgrade to a supermarket's existing HVAC controls is remodeling of…
Can a Texas sales-tax permit holder file returns on a thirteen-period fiscal accounting calendar instead of ordinary calendar months, and what filing rules apply?
Yes. Texas allows a taxpayer to file sales tax returns based on a thirteen-period fiscal accounting calendar instead of the standard calendar month, but returns are still due the 20th, two of the…
Were a trailer manufacturer's annual leases treated as rentals, and did Texas tax contracts for out-of-state use?
The annual leases were rentals because the owner was the trailers' manufacturer, regardless of contract length. Texas rental tax applied when the customer took possession in Texas, even if the…
Is removing an old lighting system and installing a new hardwired energy-efficient one a capital improvement, so the contractor doesn't charge the customer sales tax?
Yes. Installing a new, permanently hardwired energy-efficient lighting system is a capital improvement, so the contractor doesn't charge the customer sales tax (with Form ST-124) — but the…
Which laboratory charges for processing a motion-picture master film were exempt from Florida sales tax?
Charges for producing and processing the master film were exempt. Separately stated tangible elements were taxable; the laboratory owed use tax on tangible elements not separately stated. Additional…
Could crude-oil emulsion breaker E-4161 be bought for resale because it remained with the oil after water and brine were removed?
Apparently not. Its purpose was removing water or brine, so it was a taxable manufacturing aid unless it had a specific beneficial function after processing ended.
Texas Letter Ruling 9212L1208G14: Towing Charges — Second Tows Or Transfer Fees In Connection With Repossession Services And Separately Billed Are Part Of Debt Collection Services
It depends on who is towing. Plain towing charges are not taxable unless the towing company is also the repossessor, and towing hired directly by a financial institution to repossess a vehicle is…
Texas Letter Ruling 9211L1209A08: Towing/Transport Charges — Part Of Debt Collection/Repossession Services
Yes, if the repossession company itself does the towing. A repossession company's towing charges are taxable as part of its taxable debt collection/repossession service to the financial institution,…
Texas Letter Ruling 9211L1209A07: Are towing charges taxable when a vehicle is repossessed?
It depends on who hires the tow truck. If a repossession company hires a towing company to move a vehicle it just repossessed, the towing company's charge to the repossession company is not taxable,…
Does a cable TV company owe Texas sales tax when it pre-wires a home for cable TV outlets?
It depends on the contract type: on a lump-sum contract the cable company owes tax on the cost of the wire itself and doesn't collect tax from the customer; on a separated contract the cable company…
Was a land surveyor's charge taxable when the surveyor measured a site, prepared a drawing from field work, and gave the client a copy?
No. The land survey was the true object, and the drawing was only an incidental transfer of tangible personal property.
Texas Letter Ruling 9211L1209A14: Disposable/Nonreusable Items (Placemats, Plates, Cups, Tray Liners, Toothpicks) — Food Service Operators' Purchases Under Resale Or Exemption Certificate
Yes. A restaurant chain may issue a resale certificate to a supplier of paper placemats instead of paying tax, because Rule 3.293(f)(4) lets eating establishments buy nonreusable items furnished to…
Texas Letter Ruling 9211869L: Lowering Of Temperature/Flash Freezing Product During Processing Vs. Keeping Product At Targeted Temperature — Electricity Used
Exempt. Texas Comptroller Letter Ruling 9211869L holds that electricity used to lower the temperature of food products (like chilling avocados, chickens, and meat, or flash-freezing vegetables) down…
Were monthly payments for restaurant space at a publicly owned golf course exempt as rent paid by a food-and-drink concessionaire?
Yes. The agreement's reference to 'rental property' showed a landlord-tenant relationship rather than a license. Because the lessees operated a food-and-drink concession at a publicly owned…
Were medical test cards, spurs, and strips containing preassembled biochemicals or antimicrobial compounds exempt when sold to testing laboratories?
Yes. Test kits sold to medical testing laboratories were exempt when they contained preassembled biochemicals or antimicrobial compounds used to diagnose or treat human disease, illness, or injury.…
Were charges for customers to use a provider's radio relay transmitter or repeater taxable even though no tangible property was furnished?
Yes. The Commission classified customer use of a radio relay transmitter or repeater as telephone service under Rule R865-19-90S. The charges were therefore taxable under the cited Utah Code…
Texas Letter Ruling 9211L1209G06: Homeowners/Property Owners Association — Taxable Services (Cable Television, Landscaping, Garbage/Trash Pick — Up) And Nontaxable Services Provided To Members — Billings
A Texas property owners association that buys taxable and nontaxable services (like cable TV) for its members and bills a lump-sum periodic fee is treated as the consumer, paying sales tax to its…
Texas Letter Ruling 9211L1205F09: How is the location of a cellular telephone call determined for city, county, and MTA (Metropolitan Transit Authority) tax purposes?
The location of a cellular call is set by the cell site that receives the incoming transmission. If that originating cell site can't be determined, local sales tax (city, county, and MTA) is instead…
Texas Letter Ruling 9211L1205B03: Statute Of Limitations — Tax Refund On Federal Contracts — Federal Law Vs. State Law
This is an internal 1992 Comptroller staff memo, not a taxpayer ruling. It states the agency's position that Texas's own four-year statute of limitations governs sales and use tax refund claims from…
Is the labor to repair a residential central air conditioner taxable in Texas, and what about the Freon used in the repair?
Only the charge for the Freon (refrigerant) itself is taxable. On a residential central air conditioning repair, the labor-related fees -- reclaimer fee, pump and torch fee, and leak detector fee --…
Was a medical center's physician handbook a printed sales message when it sought referrals but functioned as a department and physician reference guide?
No. California treated the handbook as a directory and reference guide to services and physicians, not a publication principally advertising or promoting services.
Was a post-merger dropdown of 75 percent of an acquired leasing business's assets and liabilities to a subsidiary also nontaxable?
No. Regulation 1595(b)(3) protected the statutory-merger step, but the later dropdown was a separate sale because first-issue stock and recorded intercompany debt or assumed liabilities were…
Did California teachers administering an out-of-state seller's school book club create a use-tax collection duty?
Yes. The appeals recommendation treated teachers who took orders, collected payments, and delivered books as the seller's California agents.
When a bookstore gives customers 'book credits' for traded-in books (minus a 10% handling charge), is tax due when the credit is used on a future purchase, or only at the original trade?
Tax is due on the full purchase price of the future book purchase, not reduced by the credit. A trade-in only avoids tax when the trade-in property is exchanged as consideration in the SAME sale…
Was powdered Nutri-15 Plus protein supplement exempt as a California food product?
No. California taxed the powdered product because its label called it a protein supplement and gave directions for using it in a weight-loss program.
Could a vehicle export remain tax-free when the seller could not be listed as bill-of-lading shipper because the buyer containerized many items?
Yes, conditionally: seller-to-intermediary delivery, written no-diversion/no-cancellation terms, intermediary confirmation and foreign-shipment proof were required.
Texas Letter Ruling 9211L1204G13: Auctioneer — Sales Made On Behalf Of Federal Government
It depends on who is legally the seller. If a U.S. government agency consigns items to an auctioneer and the auctioneer collects payment and issues the bill of sale, the auctioneer is the seller and…
Texas Letter Ruling 9211L1204G11: Is stainless steel polish bought by a janitorial service to clean customers' metal restroom dispensers exempt from tax under a resale certificate?
No. The Comptroller ruled that stainless steel polish bought by a janitorial company to clean customers' metal restroom dispensers is taxable at purchase, because the polish is consumed by rubbing…
Is lawn mowing and landscaping work on a public highway right-of-way taxable when a private developer, not the government, pays for it?
It depends on who required the work, not who paid for it. Under Texas sales tax rule 3.356(a)(5), lawn maintenance and landscaping on land belonging to a governmental entity is exempt only if the…
Texas Letter Ruling 9211579L: Draperies/Curtains — Installation In New Houses/Residences Vs. Existing Houses/Residences
It depends on your role. Draperies are tangible personal property, so selling and installing them is normally taxable in full. But if an interior designer is acting as the contractor on a…
Could a business-trust fund invest in forward contracts for Florida municipal securities without losing its intangible-tax exemption?
Yes. The Department treated a forward contract for Florida municipal securities as a completed contract and an exempt asset. Fund shares qualified if the January 1 portfolio consisted solely of…
Were carnival-ride tickets sold by a state authority at its annual fair exempt as admissions to a government-sponsored event?
Yes. The revised lease made the authority an active sponsor responsible for planning, safety, costs, proceeds, and any loss. The exemption arose from the government-sponsored-event rule—not merely…
Was a Florida printer's brochure sale taxable when it delivered the brochures to the Florida customer's mailing-house agent for mailing out of state?
Yes. The Florida customer was the purchaser and ultimate consumer, and its Florida mailing house acted as its agent. Because title and possession transferred in Florida before interstate shipment,…
Texas Letter Ruling 9211L1205F07: Woodworking — Building Bird Houses And Feeders For Sale
Yes, you need a (free) Texas sales tax permit to sell bird houses and feeders, and you must collect state sales tax plus the applicable local rate based on where the sale is made. You can buy your…
Which deposit schedule could South Carolina withholding agents use during the 1993 federal transition year?
During 1993, South Carolina withholding agents could use the due dates under either the old federal and state deposit rules or the new federal deposit rules. Nonresident withholding agents could…
Texas Letter Ruling 9211L1211C01: Does an on-line service that lets buyers and sellers trade consulting services, software, and information electronically owe Texas sales tax, and has it created nexus in Texas?
Yes to both. Attending Texas trade shows, conventions, and users group meetings gave the out-of-state on-line service nexus in Texas. Once nexus exists, the service must collect Texas sales tax on…
Texas Letter Ruling 9211L1206C09: Engineering Services — Designs/Blueprints/Specifications Preparations/Reports/Working Drawings — Nontaxable Services
No. A Texas Comptroller letter ruling holds that an engineering firm's study and report on bringing a building into compliance with building codes is a nontaxable consultation service, and including…
For a maid service, are apartment cleaning, laundry, laundry-cost reimbursement, and travel charges each subject to New York sales tax?
Apartment cleaning is taxable real-property maintenance; separate laundry charges and laundry-cost reimbursements are not taxable; but travel charges are fully taxable because they can't be split…
Are homeowners association dues subject to sales tax when the HOA has recreational facilities, no facilities, or spins the facilities into a separate corporation?
If the HOA owns recreational facilities, its whole mandatory assessment is taxable club dues — you can't carve out the small recreation share. An HOA with no recreational facilities isn't taxed.…
Does a tennis club collect sales tax on a required purchase of the landholding company's stock, and can members get that tax refunded when the stock is redeemed?
Taxable. A share purchase required as a condition of membership is both taxable dues and an initiation fee under § 1105(f)(2), so the club collects tax on it. Redeeming the stock later gives no…
Does a grocery's larger 'Advantage Shelf Tag' adequately disclose a manufacturer's coupon reimbursement in an electronic (paperless) coupon system?
Yes. The larger, differently-colored 'Advantage Shelf Tag' substantially as described meets the manufacturer-reimbursement disclosure requirement, even in a paperless coupon system — but a plain…
Were a retailer's revolving-charge agreements and signed sales memoranda subject to Florida documentary stamp tax?
No. Signing the revolving-charge agreement created no immediate obligation; liability depended on a later purchase and signed memorandum. The memorandum acknowledged receipt of goods but contained…
Which low-emission vehicle and retrofit-device amounts qualified for the section 6356.5 exemption?
Properly documented incremental new-vehicle costs and labeled retrofit devices were exempt, but a dealer's later sale of its retrofitted used vehicle was fully taxable.
Which charges were taxable when an on-site legal copier billed machine transport and setup, hourly time, per-copy fees, and document numbering?
All charges tied to producing the copies were taxable, including setup, hourly labor, per-copy fees, and Bates stamping; a subcontract sale could be for resale with a valid certificate.
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