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 the sale of ostriches, emus, and rheas exempt from Texas sales tax when raised for meat, feathers, hides, and oil?
Yes -- the Comptroller ruled that sales of ostriches, emus, and rheas (collectively called ratites) are exempt from Texas sales tax under Rule 3.296, which exempts animal life whose products…
Are culverts sold to farmers, ranchers, homeowners, or contractors exempt from Texas sales tax, and is sand, gravel, or crushed rock taxable?
Culverts are taxable -- they do not qualify as exempt farm equipment or machinery, so no farm-use exemption certificate can be accepted on their sale, even to farmers or ranchers. Culverts sold to…
For a company that books trips and tours, what share of its service receipts is allocated to New York for the Article 9-A receipts factor when the booking agents are in New York but the back office is elsewhere?
All of it -- 100% of the service receipts are allocated to New York. For a company that 'books' trips and tours, the receipts come from services, and under 20 NYCRR 4-4.3 service receipts are…
Was an oilfield company's charge for pressure testing well rods and tubing taxable under Texas Letter Ruling 9205L1171B14?
No. The company used a load-and-test truck to pressure the rods and tubing solely to find parted rods or holes, then notified the owner if repair was needed. Because the company performed testing…
Can laundry and dry cleaning businesses buy the electricity and natural gas they use to process rental linens/shirts tax-free as a noncommercial or resale use?
No. The Utah State Tax Commission ruled that laundry and dry cleaning establishments — including linen/shirt rental companies — are commercial establishments, not manufacturing, mining, or…
Are forming lumber, paper cups, rental equipment repairs, and fuel for rented equipment taxable or exempt under Texas sales and use tax?
Mixed ruling on seven separate questions. Forming lumber used at a job site to build concrete formations is taxable as a consumable if discarded, but is treated as equipment (not necessarily taxable…
How did Florida's intangible tax apply to employee purchase awards, nonrecourse stock-purchase notes, and pledged shares under a stock plan?
The nontransferable employee purchase award was an option but had no taxable value because only the employee could exercise it and no market existed. The corporation's purchase note was taxable to…
What Texas sales, use, hotel occupancy, and fuel taxes apply to (and can be exempted or refunded for) a motion picture production company filming in Texas?
A film producer is treated as a manufacturer for Texas sales tax purposes, so goods and short-lived equipment (useful life under six months) used directly in producing a film -- props, costumes, set…
Is pressure/power washing a residence or other building before painting (or to remove graffiti) subject to Texas sales tax?
Yes, pressure washing a building is a taxable real property service, but the tax treatment depends on who is buying it. If the washing company also does the painting itself, its own pressure washing…
Does an out-of-state company that uses a Texas-based commissioned sales agent become 'engaged in business' in Texas and responsible for collecting Texas use tax on its sales into the state?
Yes. Using a commissioned agent or salesperson located in Texas -- even one who is an independent contractor rather than an employee -- makes the out-of-state seller 'engaged in business' in Texas…
Is an original painted portrait subject to Texas sales tax, and if so, who -- the out-of-state company arranging the commission or the artist -- must collect it?
Yes -- original painted portraits are taxable tangible personal property in Texas, not an exempt professional service. Who must collect the tax depends on the arranger's role: if the out-of-state…
Is road grading/reworking exempt 'maintenance,' and what documentation lets a subcontractor buy highway-contract materials tax-free?
Two separate rulings in one letter. First, reworking a private road 'as needed' is not exempt maintenance -- it is a taxable repair or restoration service, and the taxpayer lacked enough…
Is a charge for running personal errands, like grocery shopping, picking up dry cleaning, or dropping off shoes for repair, subject to Texas sales tax?
No -- a charge for running errands, such as grocery shopping, picking up dry cleaning, taking shoes to a repair shop, or picking up event tickets, is not taxable. However, sales tax still applies to…
Is feed for breeding horses and llamas, and the sale of the animals themselves, exempt from Texas sales tax when the offspring are raised for sale?
Split ruling: feed for horses, llamas, and their offspring raised for sale is tax exempt under Rule 3.296, and medications/vaccines/supplements for horses are also exempt. Sales of horses are exempt…
Does a supplier still have to remit tax on sales it makes to mobile vendors, now that many mobile vendors operate independently rather than exclusively under one supplier?
Split answer based on the vendor's relationship to the supplier. If the mobile vendor still operates under the company and is connected to it through leased vehicles, Comptroller Rule 3.293 still…
Are personalized behavioral-analysis reports on an individual a taxable information service, or are they exempt as personal or individual in nature?
They are exempt. Preparing reports on a particular individual's behavioral tendencies from a questionnaire the customer completes is an information service that qualifies for the 'personal or…
Is admission to a 'Haunted Hayride' exempt from sales tax as a dramatic performance, or taxable as admission to a place of amusement?
It's taxable. Admission to a 'Haunted Hayride' — a haywagon tour past twenty or more short, one-to-two-minute costumed horror scenes — is a taxable admission charge to a place of amusement under Tax…
Must an out-of-state seller that also has New York stores collect NY sales tax on goods it ships by common carrier from out-of-state warehouses to New York customers?
Yes. A company that maintains offices and retail stores in New York must collect New York State and local sales and use tax on merchandise it sells and ships to New York customers by common carrier…
Were payments under mineral-rights agreements taxable when a contractor extracted sand, gravel, or soil from private land?
Yes. The minerals became tangible personal property at the instant of extraction, and title to the severed material passed after severance. That created a taxable acquisition of tangible personal…
Was embroidering used clothing taxable under the rule for alterations to new clothing, and when would the thread make the charge taxable?
Ordinary embroidery on used clothing was treated like repair, not a new-clothing alteration. None of the charge was taxable unless thread exceeded 10% of the total or was separately charged.
Can condominium associations claim a 'prior contract' exemption from a city's reimposed 1% local sales tax on their natural gas and electricity purchases?
No. The Comptroller ruled that there is no prior-contract exemption from a city's reimposed local sales tax on residential natural gas and electricity purchases. The city had repealed its own tax on…
Did Texas require a tax-free rental vehicle to be used exclusively for rental or require records of non-rental use?
No. A vehicle acquired tax-free for rental did not have to be used exclusively for rental, and Texas motor vehicle tax rules did not require records documenting non-rental use. But the minimum tax…
What significant South Carolina tax changes did Act 361 of 1992 make?
The act changed debt setoff, exempt-organization filing, nonresident withholding, admissions accounting, fuel calculations, property assessments and refunds, fee-in-lieu rules, and sales-tax…
Was a bunker-fuel trading house merely a paperwork intermediary, and which charges entered its taxable receipts?
It was the retailer. Tax measured the full sales charge, including overtime and related charges, except qualifying separately stated transportation charges.
Were a photogrammetrist's charges for distortion-corrected mylar aerial negatives nontaxable professional survey services?
No. The recommendation found that engineering-company customers bought intermediate mylar negatives, while the partnership produced no final engineered map and performed no engineering computations.…
Were fixtures and equipment from a printing-and-mailing business exempt because taxable printed-material sales were only a small share of revenue?
No, according to the appeals reviewer. Printing and mailing were inseparable parts of one business, so the asset sale was not occasional. The reviewer also recommended successor liability because…
Are unredeemed coupon revenue, exhibitor car-pass charges, and game revenue at a nonprofit state fair subject to Texas sales tax?
Split ruling on three issues. (1) Coupon revenue for unredeemed fair coupons is not taxable when the coupon is sold, but tax is triggered when the coupons are actually redeemed for food or an…
Is a merchant's returned/bad-check fee taxable, and does the answer change when the debt is turned over to an outside collection agency?
Split ruling based on who performs the work: a merchant's own returned/bad-check fee is not taxable when the merchant handles the collection in-house. But once an outside collection agency is…
When could South Carolina waive some or all of the 2% withholding on payments to a nonresident contractor under the 1992 amendment?
The Commission could waive withholding for out-of-state work, materials, subcontracted portions, or a contractor with substantial South Carolina assets or a business location. Security by bond,…
When did a federally exempt organization or cooperative have to file a South Carolina income-tax return under the 1992 amendment?
For tax years beginning on or after January 1, 1993, a § 501 organization or § 1381 cooperative filed a South Carolina income-tax return only if it had the specified taxable income. A § 501-exempt…
What changes did South Carolina make to the corporate headquarters credit for tax years beginning after 1991?
The amendment kept the 75-job requirement but allowed jobs above the required 40 headquarters staff positions to be headquarters or R&D personnel. It added three-year cost timing, a staffing…
Does South Carolina's April 1992 policy-document citator contain actual document-by-document status entries?
Yes. The 17-page source includes actual entries for Revenue Rulings, Revenue Procedures, Private Letter Rulings, Technical Advice Memoranda, and Information Letters, plus cumulative-topic and…
Could a computer buyer erase the original tax or exempt a later sale and leaseback by backdating the lease within 90 days?
No. The original purchase remained taxable, and the later sale and leaseback was a second taxable transaction because it occurred too late and was not merely financing.
Can an equipment renter switch an active lease from tax on rent to tax-paid treatment after buying the leased property?
No. Acquiring title during an active sublease could not change its rent-tax method; other property and new leases had separate elections.
Is a motor vehicle exempt from sales tax as an orthopedically-handicapped vehicle if it was purchased before the buyer's disability occurred and later modified for handicapped use?
No. The Comptroller denied the refund because the truck was purchased October 1, 1991, before the physician's statement (dated March 19, 1992) and hand-brake installation (dated April 14, 1992)…
When gas sold through a common-carrier pipeline changes hands at an in-state meter point but is ultimately delivered out of state, is the sale subject to Texas sales tax, and what documentation is needed to prove any exemption?
It depends on who the buyer is, not on where the gas ends up. If title passes in Texas to a broker or reseller (or to an out-of-state utility/reseller) who will resell the gas, the sale can be…
For sales before September 1991, were a firm's custom software, stock-pricing service, and trade-confirmation reports subject to New York sales tax?
It depends on the item. For the audit period (Sept. 1, 1988 to Aug. 31, 1991): custom software written for one customer's specific computer environment was treated as intangible property, so its…
Does Texas's prescription-drug sales tax exemption apply to drugs sold in Louisiana to individuals covered by Texas Worker's Compensation insurance?
No -- Texas's prescription drug exemption does not apply. The Comptroller ruled that when prescription drugs are sold in Louisiana to Louisiana residents (even if they are covered by Texas Worker's…
When a landlord buys electricity and gas for an office building and bills tenants (including a nonprofit tenant) for their pro-rata share as part of the lease, is that utility purchase taxable to the landlord?
Yes. The landlord's purchase of natural gas and electricity for the leased office building is a taxable commercial use, because the utilities are an expense of the landlord's business of leasing…
Which oil-spill pad recycling, site assessment, and soil remediation charges were taxable in Texas?
Cleaning absorbent pads and booms and selling new or used pads were taxable. Proprietary site assessments and soil remediation were not, while reusable or public-source information could be taxable…
Did Florida documentary stamp and intangible taxes apply to documents between debtors and a creditor under a confirmed Chapter 11 reorganization plan?
No. The Department concluded that Chapters 199 and 201 did not tax the execution, delivery, recording, performance, enforcement, or foreclosure of documents executed between the debtors and creditor…
Does Utah sales/use tax apply to natural gas sold and delivered through a pipeline with title passing in Utah, when the gas goes to a reseller, an out-of-state end user, or a utility company?
It depends on who buys the gas. A sale to a broker for resale is exempt (with a resale exemption certificate). A sale to a local distribution/utility company is also exempt as a resale, even though…
Did charging admission to a religious fundraiser make its otherwise exempt meal taxable, and how were bundled wine and entertainment charges treated?
No, admission did not defeat the religious-meal exemption. Wine tasting was taxable, and the ticket needed a supported allocation to keep meal and entertainment amounts exempt.
How should a religious fundraiser allocate one ticket price covering admission, an exempt meal, taxable wine tasting, and entertainment?
The ticket had to clearly separate taxable and exempt amounts. Existing tickets could use supported records, but no allocation could expose the full ticket to tax.
If a lump-sum contractor tells customers in writing that the contract price 'includes sales and use tax' instead of separately stating the tax, has the contractor erroneously collected tax on the entire contract amount that must now be remitted as error tax?
No -- merely telling customers in writing that the lump-sum price 'includes sales and use tax' (instead of separately stating a tax amount) is not, by itself, erroneous collection of tax on the…
Is a charge for cremating a deceased pet and disposing of or returning the ashes according to the owner's instructions subject to Texas sales tax?
No. The Comptroller ruled that charging pet owners to cremate a deceased animal -- and then returning the ashes, disposing of them, or following other owner instructions -- is a non-taxable animal…
Are materials used to build a railroad loading and containment facility exempt from Texas sales and use tax as railroad track materials?
Split answer: materials actually incorporated into the railroad track itself (rails, cross ties, etc.) qualify for exemption from Texas sales and use tax. But materials used to build the loading and…
Is a breakage/scratch protection guarantee for eyeglasses (and the reduced-fee replacement it provides) taxable under Texas sales tax, and does it matter whether the eyewear is prescription or non-prescription or who sells it?
Split answer that depends on two facts, not one. Repairs and reduced-fee replacements under the breakage protection guarantee are tax-exempt when the eyewear is prescription, as long as the seller…
How is Texas sales/use tax applied to three separate vendor invoices: a used scale and scale house, a new water well drilling job, and converting an existing tank into a silo?
Three separate answers for three separate invoices. The used scale and scale house is taxable tangible personal property (being bolted to a concrete slab does not make it realty). The water well…
Were a sold technical library, drawings, designs, and fixed assets taxable at the contract's allocated values, and could deferred interest reduce the measure?
Yes. The physical library and designs were taxable at negotiated allocations; fixed assets used the agreed value, while an interest reduction required separate supporting records.
Who was the retailer responsible for collecting California use tax when a society hired a list manager to promote mailing-list rentals?
Counsel treated the society as the lessor and collecting retailer; the manager was its agent despite retaining part of the rental price.
Is a corporate wellness program's health screening, fitness instruction, and re-evaluation/monitoring services subject to Texas sales tax?
No -- the charge for the wellness program's services (health risk appraisal/screening, wellness information and instruction, and re-evaluation/monitoring) is not subject to Texas sales tax. However,…
How did Texas Letter Ruling 9205L1169C06 tax refinishing labor for residential built-ins, nonresidential built-ins, and free-standing appliances?
Labor on residential built-in improvements was nontaxable. Labor on nonresidential built-ins and on free-standing appliances, furniture, or other tangible personal property was taxable. Residential…
Can a trash-removal company buy the containers it rents to customers tax-free as a purchase for resale?
No. A trash-removal company cannot buy its trash containers exempt as a purchase for resale, even when it separately states a container rental charge on the customer's bill. Under Tax Law § 1105(a)…
Was a mandatory charitable Christmas-tree sponsorship taxable when the sponsor received possession of a decorated tree for three weeks?
Yes. The payment was mandatory to receive the tree, and the sponsor received value commensurate with the payment through three weeks of possession. The Comptroller treated the arrangement as a…
When was a dealership's environmental fee on a Texas motor-vehicle repair order taxable under Letter Ruling 9205L1167G09?
The fee followed the underlying charge. A fee based on nontaxable motor-vehicle repair labor was nontaxable; a fee based on taxable materials was taxable; and a fee calculated from the combined…
Could a nonexempt club use the Knights of Columbus sales-tax exemption to buy equipment for facilities used by the Knights, and could it avoid tax on items bought for resale?
The club could not claim an exemption for its own purchases because it was not exempt. But the Knights of Columbus could buy qualifying equipment tax-free with its own funds, and the club could act…
Were ultralight flight instruction and aircraft-repair labor taxable under Texas Letter Ruling 9205L1167B13?
Actual flight instruction conducted under FAA Part 61 or Part 141 was not taxable, and labor to repair an ultralight aircraft was exempt. A noninstructional pilot flight that went nowhere was…
Are a company's charges for letting a medical practice use its leased MRI machine a taxable rental of equipment, or a nontaxable service?
Yes — the charges are a taxable rental of equipment. Where a company subleases an MRI system to a professional corporation (PC) and the PC's own technicians operate the machine and direct its use —…
Did a hospital sell disposable central-supply items to patients merely because it separately itemized them on patient bills?
Not when hospital staff used the items to provide professional services and title or possession never passed to patients. Staff recommended a fact-specific reaudit.
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