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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Could delinquent Massachusetts taxes suspend a new Texas vehicle license and registration?
No. The letter said Texas would not suspend the license and registration for delinquent Massachusetts taxes as long as Texas registration fees and taxes were paid. Moving did not erase the Massachuset…
Was a contractor exempt from Texas motor vehicle tax when renting a mobile office trailer for a public school project?
No. The school district could qualify for exemption on vehicles it purchased, titled, plated, or rented itself, but the contractor did not inherit that exemption merely by acting on the school project…
Could tax paid to a foreign country reduce Texas use tax on a vehicle bought abroad and brought into Texas?
No. Texas granted credit for sales or use tax paid to another U.S. state on the same vehicle, but not for tax paid to a foreign country. The historical Texas use tax applied to a foreign or domestic v…
Why did Texas refund only 95 percent of a historical motor vehicle tax payment, and who refunded the other five percent?
The State refunded only the 95 percent it had received. The county had retained five percent as its collection fee, so the taxpayer had to request that portion separately from the county. In this case…
Were U.S. Department of Labor employees exempt from Texas motor vehicle rental tax while on official business?
Yes. U.S. Department of Labor employees conducting official government business were exempt from the historical motor vehicle rental tax. They had to present identification and travel orders, complete…
Did Texas refund motor vehicle tax when purchased trucks were destroyed, or exempt their replacements?
No. Historical motor vehicle tax applied to every Texas vehicle sale. The law described in the letter had no refund provision for a vehicle later destroyed and no exemption for buying a replacement, s…
When could a Texas county tax assessor accept personal checks for vehicle tax, and what happened if a check was dishonored?
A county collector could accept a personal check, but historical vehicle tax was not paid until the bank honored it. The collector avoided liability for a bad check by satisfying Ruling .035, reportin…
Did a Texas dealer owe vehicle tax while its vehicle was used in Germany before a later Texas sale or use?
No tax was due on the described vehicle while the relevant use occurred in Germany and no Texas sale or use had occurred. Motor vehicle sales or use tax would become due once a sale or use took place …
Who paid Texas tax on a vehicle purchased for lease to a common carrier, and were the lease payments taxed?
The purchaser-lessor owed historical motor vehicle sales tax on the vehicle's purchase price and paid it at titling. The later lease payments were not taxed. At the time, a lease required exclusive us…
Were mopeds subject to Texas motor vehicle sales tax even though Texas licensed but did not title them?
Yes. Texas treated mopeds as motor vehicles. The purchaser paid the historical motor vehicle sales tax to the county collector at transfer and registration. A moped did not receive title but had to be…
Were unincorporated federal agencies exempt from Texas motor vehicle rental tax, and how was the exemption documented?
Yes. The letter exempted unincorporated agencies and instrumentalities of the United States, including the Defense Department's Military Traffic Management Command, from the historical gross receipts …
Did Texas tax digger equipment under limited sales tax or motor vehicle tax when attached to a truck chassis?
It depended on the transaction. A digger sold for attachment to the customer's existing truck was tangible personal property subject to historical limited sales tax. If the seller attached it to a cha…
Are admission charges and food and drink sales on a Missouri River riverboat cruise subject to Nebraska sales and use tax, and how is the Nebraska share determined?
Admissions collected in Nebraska and charges for food and drink made on the Nebraska side of the Missouri River are subject to Nebraska sales and use tax. Under Revenue Ruling 01-77-7, riverboat board…
Do private vendors have to charge Nebraska sales and use tax on goods delivered to people living on a federally owned military housing area?
Yes. Sales and use tax applies to deliveries of tangible personal property by private vendors to people residing on federally owned military housing areas. Under Revenue Ruling 01-77-6, the federal Bu…
Does a Nebraska golf course have to charge sales and use tax on fees for cleaning and storing customers' golf equipment?
No. A golf course operator's charges for cleaning and storing golf equipment are not subject to Nebraska sales and use tax. Under Revenue Ruling 01-77-11, cleaning golf equipment and storing equipment…
Did returning an unsatisfactory car qualify for a Texas tax refund when the dealer kept about $400 for two months of use?
No. A historical refund for a nonconsummated vehicle sale required the seller to take back the vehicle and return the entire purchase price. Because the dealer kept about $400 for two months of use, t…
Was a court-ordered vehicle transfer with no consideration, such as under a divorce decree, a taxable sale?
No. The internal memorandum said a court-ordered vehicle transfer with no consideration, including a transfer under a divorce decree, should not be treated as a sale for historical motor vehicle sales…
What did Texas House Bill 1976 propose for county tax collectors accepting checks and handling dishonored payments?
The bill text allowed, but did not require, county tax collectors to accept checks for listed taxes and fees. Payment remained conditional until the bank honored the check. Collectors obtained maker i…
When a reservation Indian and a non-Indian jointly own and register a motor vehicle on a Nebraska Indian reservation, is any Nebraska sales and use tax due?
Sales and use tax is due, but only on the non-Indian owner's share. Under Revenue Ruling 01-76-27, when a motor vehicle registered on a Nebraska Indian reservation is owned by a reservation Indian and…
Can an employer rent motel rooms for its employees free of Nebraska sales and use tax when it just pays a daily rate with no 30-day contract?
No. An employer that rents motel rooms for employee use at a daily rate, with no oral or written contract guaranteeing a minimum room rental for at least 30 days, must pay Nebraska sales and use tax o…
Did Nebraska's statutory deadline for tax-refund claims apply to reservation Indians?
Yes. A reservation Indian seeking a refund of erroneously paid state tax had to file within the period set by the applicable tax law. The Department or other taxing authority could not consider a clai…
How did Nebraska treat an Indian tribal council for state-tax purposes?
A tribal council received the same state-tax treatment as a reservation Indian when it consisted of reservation Indians and was chartered as the ruling body of a federally recognized American Indian t…
Who qualified as a reservation Indian for purposes of Nebraska's state-tax exemption?
A reservation Indian was a person who met Revenue Ruling 99-76-1's definition of an Indian and resided on a Nebraska Indian reservation as defined in Revenue Ruling 99-76-2. Both status and residence …
Who does Nebraska consider to be an 'Indian' for purposes of exemption from state taxation?
For purposes of exemption from Nebraska state taxation, an 'Indian' is a person of at least one-fourth Indian blood, or a person presently enrolled as a member of a recognized American Indian tribe. R…
Could a Nebraska water-pollution-control facility obtain a sales-and-use-tax refund for chemicals consumed in its operation?
No. The refund act covered approved materials and equipment incorporated into and becoming part of the pollution-control facility. Operating chemicals did not become part of the facility, so tax paid …
Was steam heat sold through a closed system subject to Nebraska sales and use tax?
No. When a utility piped steam through a customer's heating system and the condensed water returned to the utility, the transaction transferred heat rather than tangible personal property, and steam h…
How did Nebraska sales tax apply when a carpet dealer bought samples for display and later sold the obsolete samples?
The dealer owed sales or use tax on the samples' purchase cost because they were used to promote carpet sales, not bought for resale. If the dealer later sold obsolete samples at retail, it also had t…
What did Texas's 1975 bulletin require for non-street-legal motorcycles and motor-assisted bicycles?
Beginning September 1, 1975, the bulletin required non-street-legal motorcycles to be titled and subjected post-sale title applications to the historical motor vehicle tax. Previously owned units titl…
Did Kansas withdraw its earlier guidance about charging sales tax on debt-service-retirement charges on rural water district bills?
Yes. In this notice dated December 18, 1974, the Kansas Department of Revenue told Kansas rural water districts to disregard the Department's earlier notice of November 25, 1974, which had addressed a…
Did an unintentional 20-day overrun turn a planned 31-day Texas vehicle rental into a lease?
Not necessarily. The contract intended a 31-day rental, and the customer unintentionally returned the car 20 days late. Because historical article 6.01 focused on whether the intended rental period ex…
Who owed Texas use tax on out-of-state leased vehicles operated by a Texas carrier solely in interstate commerce?
The Texas resident lessee and operator owed the historical use tax, not the nonresident lessor holding legal title. The vehicles were bought outside Texas and brought into and used within Texas, and s…
Did Texas impose use tax when a Texas resident registered an out-of-state interstate vehicle that might never enter Texas?
Yes. The 1974 opinion treated a Texas registration application as prima facie evidence that the out-of-state vehicle would enter and use Texas highways, so use tax was due on original consideration. I…
Who remained liable when a vehicle seller collected tax from the buyer but failed to remit it to the county?
Both faced consequences. A seller that properly completed the joint affidavit and retained sale records ordinarily had no tax liability. But if it accepted the buyer's tax money and failed to remit it…
Are freight and transportation charges on a taxable sale delivered to a Kansas customer part of the taxable selling price?
Yes. Since July 1, 1971, both interstate and intrastate freight and transportation charges made in connection with the taxable sale of tangible personal property, for delivery to the ultimate user or …
Do growers of Christmas trees have to collect Kansas sales tax when they sell trees directly to consumers?
Yes. Producers of Christmas trees are liable for collecting Kansas retail sales tax on all trees sold directly to the final consumer. A common misinterpretation is that items produced and sold on the …
What sales must Kansas private and public clubs collect sales tax on — dues, bingo, admissions, concessions, food, and merchandise?
Kansas private and public clubs must collect and pay sales tax on: membership dues that entitle the member to use club facilities for recreation or entertainment (effective July 1, 1971); gross receip…
Does the Soldiers and Sailors Civil Relief Act exempt a serviceman from Kansas sales tax when titling a car in Kansas?
No. The Kansas Department of Revenue determined that the Soldiers and Sailors Civil Relief Act does not grant relief from Kansas sales tax on a serviceman's purchase of an automobile. A serviceman may…
How did Texas distinguish a portable building from a mobile home, and did removing trailer equipment change mobile-home tax?
A portable building was movable on skids or a frame but never equipped to operate as a trailer, so limited sales tax applied. A mobile home was built to move as a trailer and was subject to historical…
Does Kansas sales tax apply to a utility late-payment charge, and how do prompt-payment discounts affect the taxable amount?
Yes. Effective July 1, 1971, when a customer pays an additional amount for failing to pay within a prescribed period for a taxable sale of gas, water, electricity, or heat, Kansas sales tax applies to…
Did Texas credit motor vehicle sales tax paid to a city or other political subdivision of another state?
Yes. The division and Legal Section read the historical statute to require a deduction not only for motor vehicle sales tax paid to another state, but also for sales tax paid to a political subdivisio…
How did Texas move large mobile-home sales from limited sales tax to motor vehicle tax on July 1, 1971?
Effective July 1, 1971, mobile homes exceeding eight feet in width and 36 feet in length moved from historical limited sales tax to motor vehicle sales and use tax collected by the county assessor-col…
Was a vehicle still a gift when the recipient placed a new lien after receiving it, and what if the recipient assumed an old lien?
A bona fide gift stayed a gift when the recipient placed a new lien on the vehicle after ownership changed, so the historical $10 gift payment sufficed. If the recipient instead assumed an existing li…
How did Texas document and register a dealer vehicle loaned free to a public school driver-training program?
The dealer and school filed a joint affidavit stating that the vehicle was loaned free for an approved driver-training program and no other use. The school obtained an exempt plate, returned it for ca…
When does a Kansas school have to collect sales tax, and when are its own purchases exempt?
It depends on whether the school is selling to others or buying for itself. This Department memo tells Kansas schools to collect and report sales tax on sales to students of books, manuals, workbooks,…
Did rebuilding the same owner's truck with a glider kit or major reconditioned motor trigger Texas motor vehicle tax?
No. When ownership did not change, installing a glider kit or major reconditioned motor did not create historical motor vehicle sales and use tax. The division understood that limited and local sales …
How did Texas collect use tax on an out-of-state titled vehicle traded to a Texas dealer without first issuing it a Texas title?
The county assessor-collector could collect and report any use tax due on the out-of-state titled trade-in through the title application when the vehicle was transferred, without requiring the taxpaye…
Did an outstanding lien reduce the trade-in allowance used to compute Texas motor vehicle tax on a replacement car?
No. The auditor should have started with the replacement car's total sale price and subtracted the full trade-in allowance. An outstanding lien or payoff on the traded vehicle did not reduce that allo…
Could used furniture reduce the taxable price of a house trailer as a motor vehicle trade-in?
No. The historical motor vehicle tax law allowed only another motor vehicle to reduce a motor vehicle's taxable purchase price as a trade-in. Used furniture did not qualify, so the county collector wa…
How did Texas historically tax a vehicle gifted from Ohio and an even trade between Texas and out-of-state titled vehicles?
Historically, the Comptroller said the Texas recipient of an Ohio resident's vehicle gift owed $10 gift tax, not new-resident tax, and a Texas resident owed $5 even-trade tax when titling a vehicle re…
When did converting a farm tractor to mow Texas highway rights-of-way trigger historical vehicle tax?
A converted farm tractor used to mow grass or weeds on public highways lost its historical farm-machinery treatment when titled and registered. No tax applied if bought before May 1, 1941; the letter …
Did a complex corporate reorganization create a taxable sale when motor vehicles transferred with the other business assets?
No, under the detailed plan presented. One corporation transferred nearly all assets, including motor vehicles, to a wholly owned subsidiary of another corporation in exchange for parent-company share…
Who was liable for South Carolina's historical tax on bingo proceeds, and could the Commission collect it from a promoter's bond?
The promoter and nonprofit organization were jointly and severally liable, with the promoter primarily liable. The Commission had to assess both and could levy against either party's bond for unpaid t…
Did South Carolina Revenue Ruling 93-13 impose the historical casual excise tax when a total-loss vehicle was transferred to an insurer in settlement of a claim?
No. A vehicle transferred to an insurance company in settlement of a total-loss claim was exempt from sales tax under the cited vehicle statute and therefore was not subject to the casual excise tax.
Who bore South Carolina's historical deed documentary tax, and how did it apply to foreclosure, government, and federal-entity conveyances?
The purchaser or grantee was primarily liable, with the seller a substitute only when collection from the purchaser was impractical. Transfers to exempt governments or listed federal entities were exe…
Which electricity used at South Carolina apartment complexes was exempt as residential use under Revenue Ruling 92-4?
Electricity for apartments, necessary common areas, and resident-only domestic amenities was exempt. Business areas were exempt only under central metering; separately metered business use and fee-bas…
Under South Carolina's 1989 sales-and-use-tax provisions, were facsimile, database-access, electronic-mail, credit-reporting, and voice-messaging services taxable communications?
Yes. Under the 1989 provisions quoted in the ruling, the listed services were subject to sales and use tax. The Commission treated the transmitted information or message and the means of transmitting …
Were university-owned land and fraternity-owned housing built on that leased land exempt from South Carolina property tax under PLR 97-3?
Yes under the stated facts. The public university's land was exempt as property of an institution of learning whose profits were not applied to private use. The fraternity corporation's separately own…
Did PLR 97-1 require a golf-cart manufacturer to collect sales tax when selling carts and dedicated chargers to golf courses that rented the carts?
No, when the golf course or country club bought the carts for taxable rental to patrons. The cart and its dedicated, included charger were one wholesale sale, and the facility owed tax on the rental f…
When could ZIP Company avoid South Carolina sales or use tax on machinery temporarily stored, repaired, and tested before shipment to a new factory in Mexico?
Tax generally applied unless the property qualified as manufacturing machinery or direct-use equipment, had substantial prior out-of-state use, or fit a statutory storage-for-out-of-state-use exclusio…
Did SC PLR 92-9 exempt the parts and components of a 410-foot power-plant chimney stack as manufacturing pollution-control machinery?
Yes. The ruling classified the described parts, attachments, and components of a 410-foot chimney stack as exempt manufacturing machines. Federal and state agencies had certified the taller stack as n…
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