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.
Was a subcontractor that poured tilt-wall panels and other concrete work—but did not physically erect the panels—a manufacturer or a contractor?
It was a contractor. The subcontractor poured the foundation, walls, curbs, sidewalks, plug concrete, patches, and final slab and remained responsible for correct wall placement before payment, even…
How should a Utah hotel report sales tax and tourism tax on liquor, mixed drinks, set-ups, and wine when tax was already paid on the liquor purchase?
The seller could include sales tax in the stated drink price if customers were told that tax was included and the bar bill was separate. To report sales tax, it subtracted the cost of the previously…
Were printed real-estate publications exempt when the printer shipped them to the purchaser's parking lot for pickup and free distribution by an outside vendor?
No. Delivery to the purchaser's premises defeated the printed-sales-message exemption, even though an independent contractor immediately picked up the publications for free distribution.
How did California apply use tax when an out-of-state printer mailed promotional material from Pennsylvania or routed it through a California bindery, mailing house, or post office?
Mailing from Pennsylvania caused no California use tax because title and use occurred there. Routing pieces through California was a taxable use unless the printed-sales-message exemption applied.
Could a printer use a trucking partnership owned by its majority owners to make qualifying printed-message deliveries and pass through nontaxable freight charges?
Yes under the stated assumptions. The related carrier had to operate separately, be paid for transportation, and deliver directly to outside contractors or delivery companies rather than the purchaser.
When did California use tax apply to promotional pieces printed outside the state and mailed to recipients inside and outside California?
Mailing the pieces outside California put the customer’s use outside the state. Sending them first to a California bindery, mailing house, or post office created California use, subject to any…
Were advertiser payments taxable receipts when a publisher supplied maps to a chamber of commerce without direct chamber payment?
Yes. The publisher sold the maps to the chamber, and advertisers paid on the chamber's behalf, so those amounts were taxable gross receipts.
Were a graphic designer's client meetings and printer coordination taxable when included in selling a newsletter layout?
Yes. Tax applied to the total layout charge, including meetings and printer coordination; only type-composition output containing type alone was nontaxable, while charges attributable to pages with…
Were one-way or round-trip train tickets taxable admissions when the trip ended in a historic district?
No on the described facts because the trip's primary purpose appeared to be transportation. Admissions to tour trains or buses primarily showing tourist sights along a route were taxable; the…
Before a proposed reorganization is even completed, can the Tax Department confirm in advance whether a holding company and its operating subsidiary will be allowed to file a combined New York franchise tax report?
No, not in advance. An S-corporation client (OLDCO) planned to have its sole shareholder contribute OLDCO stock to a new holding company (NEWCO) in a tax-free IRC section 351 exchange, after which…
When were sales of injected Magnevist MRI contrast exempt as prescription medicine in California?
Magnevist qualified as medicine, but sales were exempt to doctors and hospitals under the stated conditions, not to labs or diagnostic centers lacking 24-hour admissions.
When did Texas sales tax apply to trained drug-detection dogs sold to law-enforcement or investigation agencies?
No Texas tax was collected when the seller delivered the dog outside Texas and retained delivery proof. A customer taking possession in Texas owed tax unless it was a qualifying exempt entity. Other…
Did taxable data processing qualify for Texas manufacturing exemptions because it produced printed reports or other physical results?
No. Data processing was a taxable service, not manufacturing or processing tangible personal property for sale. The service provider collected tax on the service price but could not claim…
How did Texas allocate tax on remodeling a jointly owned power facility between exempt cities and private utilities holding direct-payment permits?
Each owner was treated as the sole owner of its percentage. Cities bought their shares exempt; private utilities used direct-payment certificates and accrued use tax on their shares. The entire…
Could a company rebuilding purchased used core assemblies buy wrapping and packaging supplies tax-free as a manufacturer?
Yes. The company was a manufacturer because it bought used cores, completely disassembled, cleaned, inspected, remachined, rebuilt, tested, and added the finished assemblies to inventory for sale.…
Was revenue from renting space on installed utility poles subject to Texas sales tax as tangible-personal-property rental?
No. Utility poles installed as part of a utility line were improvements to real property, so renting space on them was not a rental of tangible personal property and the rental revenue was not taxable.
Could a for-profit club buy membership cards, certificates, newsletters, and other printed materials tax-free for resale with taxable dues?
Yes. When the club collected sales tax on membership dues and gave the printed materials to members as part of membership, it could give the printer a resale certificate. Refunds for past tax had to…
How does a bank figure its average deposits for the Nebraska financial institution tax when a merger creates a short tax year?
On a partial-year basis. When a merger gives a Nebraska financial institution a short tax year, the acquired institution files a short-period return and computes its average deposits under Neb. Rev.…
Was sales tax due when an equipment lessor billed a Utah lessee for the exact personal property tax assessed on that leased equipment?
No. When the lessor merely passed through to its lease customer the exact personal property tax assessed on the specific leased equipment, no sales tax was due on that reimbursement under Tax…
Could a tree nursery deduct special UPS packing and legally required inspection charges from taxable gross receipts?
No. Packing was taxable handling labor, and required inspection costs were nondeductible expenses because no statute excluded them.
Did cogeneration equipment qualify for Texas's manufacturing-equipment phase-in exemption when the company sold more than half of its electricity?
Yes. The Comptroller applied a more-than-half-for-sale test: equipment qualified when over half of the electricity produced was sold, and the exemption was not lost merely because the same equipment…
If an out-of-state parent corporation is mistakenly listed as the record owner of New York real property that its subsidiary actually purchased, operates, and pays taxes on, does the parent become subject to New York franchise tax merely because of that clerical title error?
No. Petitioner, a Michigan corporation not authorized to do business in New York, had no involvement with New York operations -- its wholly owned New York-qualified subsidiary (PVS-NY) purchased,…
Under SC Revenue Ruling 91-20, when was a tax preparer's electronic-filing charge subject to sales tax?
When the same preparer prepared and electronically filed the return, the filing was incidental to the nontaxable preparation service and the combined charge was not taxable. When the preparer only…
Was a two-percent credit-card surcharge taxable when it reimbursed an electronics retailer for card-processing costs?
Yes. The flat surcharge was a taxable business cost included in gross receipts, not excludable interest tied to how long the buyer took to pay.
Did a county's 1990 purchase order for dump trucks qualify for protection from the July 15, 1991 tax-rate increase despite later delivery?
Yes, assuming no notice-only termination right. The purchase order accepted a fixed-price offer before the cutoff and stated the sales price plus tax reimbursement.
Could an amusement provider and its ticket agent decide by contract which party collected and remitted Texas ticket sales tax?
Yes between themselves, but their agreement did not bind the Comptroller. The amusement provider was ordinarily responsible, while a contract could assign collection and remittance to either party.…
How did Texas tax stand-alone business consulting, training, business evaluations, separately sold books, and books included in training?
Stand-alone consulting, separately stated training, and the described business-viability evaluation were nontaxable. Consulting tied to a taxable item became taxable. Separately sold books were…
When did Texas begin taxing human-operated telephone answering services, and what amount and local jurisdiction were taxable?
Human message-receiving and relaying became taxable October 1, 1991; electronic answering had been taxable since October 1, 1985. Providers collected 6.25% state tax plus applicable local tax based…
Were housing-agency bonds and the privately executed notes and mortgages arising from its single-family mortgage program exempt from Florida documentary stamp and intangible taxes?
Yes. The housing agency itself was exempt from intangible tax as part of the state. The Department also treated all program bonds, notes, and mortgages—including instruments executed by nonexempt…
What portion of a nonresident trust was taxable to a Florida beneficiary who received income, could withdraw up to $5,000 of principal annually, and held a limited testamentary power of appointment?
The limited power of appointment was not taxable because it excluded the beneficiary, the beneficiary's estate, and their creditors. The annual right to invade principal was a taxable property…
Were shares of a Massachusetts business trust's investment series exempt from Florida intangible tax when its January 1 portfolio held only exempt Florida and federal government obligations?
Yes. The series' shares were wholly exempt in each year that its January 1 portfolio was limited to exempt obligations of Florida and its local governments and the United States, its agencies,…
Were shares and portfolio assets of an out-of-state Massachusetts business trust exempt from Florida intangible tax when the fund held only exempt government obligations on January 1?
Yes. Fund shares were wholly exempt for any year in which the January 1 portfolio contained only exempt Florida, U.S., agency, instrumentality, territorial, or possession obligations. Taxable…
Did a Florida insurance service provider's work for out-of-state insurance affiliates give those affiliates Florida intangible-tax situs?
No. The service provider itself had Florida commercial domicile and had to file on its intangible property because its principal office was in Jacksonville. The Illinois, New York, and Washington…
Were borrower notes and mortgages originated by participating lenders under a Florida housing agency's single-family mortgage-revenue-bond program subject to documentary stamp tax?
No. Although participating lenders originated the first-time-homebuyer loans, the program contracts controlled loan terms, lenders sold the loans into agency pools, the agency acquired the related…
Did Florida's $5,000 discretionary-surtax limitation apply once to an integrated home entertainment system containing multiple audio, video, speaker, control, and wiring components?
Yes, when the components were sold together on one invoice, installed together, and connected as one working entertainment system. Surtax applied only to the first $5,000 of the total invoice.…
Were a graphic artist's monthly administrative-service fees taxable when the supervised projects produced finished artwork?
Partly. Fees connected with producing and selling finished artwork were taxable, while fees tied only to nontaxable services were not.
How did California tax a custom-software developer's production tools, copies, packaging, training, and feasibility studies?
The custom-program transfer was not a taxable sale, but the developer owed tax as consumer on production inputs; extra copies and packaging were taxable.
Which of a telecom carrier's transmission assets qualify for New York's central-office-equipment sales-tax exemption?
Only the equipment that directly and predominantly (more than 50%) switches, initiates, or receives telephone communication at its destination qualifies. For MCI and the related carriers, assets…
What ownership or control was required for corporations to satisfy California's unity-of-ownership test for a unitary combined report?
The same interests had to own or control more than 50% of the voting stock of every corporation in the proposed unitary group. Voting stock meant power to elect the board. Direct and indirect…
When taxable groceries were paid for with food stamps, cash, and manufacturer coupons, which amounts were subject to California sales tax?
Cash and manufacturer-coupon amounts were taxable; only the amount actually paid with food stamps was exempt, and food stamps applied first to taxable merchandise.
How did Texas tax septic-tank pumping and drain-line unstopping for business and residential customers?
Septic pumping alone was nontaxable for both. Business drain unstopping was taxable, and a combined pumping/unstopping charge was fully taxable unless pumping was separated. Residential labor was…
How did Texas tax septic pumping and drain-line unstopping for commercial and residential property?
Septic pumping alone was nontaxable. Commercial drain unstopping was taxable, and combined pumping was taxable unless separately stated. Residential labor and lump-sum materials-and-labor work were…
Was a one-time $25 administrative fee to transfer residential HVAC repair contracts after a company's bankruptcy subject to Texas sales tax?
No. The Comptroller said the one-time $25 fee charged to transfer each repair contract to the replacement service company was not taxable on the stated facts.
Is a separately priced software maintenance agreement taxable in New York, and how did the 9/1/1991 law change the answer?
It depends on the date, and on itemization. Before September 1, 1991, custom/modified software was intangible personal property, and maintaining or servicing an intangible was not an enumerated…
Are honey-roasted peanuts taxable in New York, or are they exempt food?
Yes, they're taxable. Planters Honey Roasted Peanuts are dry-roasted peanuts with a light honey glaze encrusted with sugar (the principal ingredients after peanuts are sugar and honey). Under…
Is an unincorporated, nonprofit residential condominium that earns income from common laundry and garage facilities subject to New York's Article 9-A franchise tax for years before 1989, when the definition of 'corporation' required actually conducting business?
Yes. This unincorporated, nonprofit residential condominium, organized under Real Property Law Article 9-B, derives revenue from common-charge assessments, reserve-fund interest, and common laundry…
If a corporation voluntarily dissolved decades ago but keeps title to and rents out the same real property, does it still owe New York franchise tax, and can it elect New York S corporation status?
Yes, it remains taxable, and yes, it can elect S status if otherwise eligible. Judsu Realty Corp. voluntarily dissolved in 1965 but has continued ever since to hold fee title to, and operate the…
Does a trash compactor bought for an expanded manufacturing facility qualify for Utah's manufacturer's sales tax exemption?
No. The Utah State Tax Commission ruled that a trash compactor purchased for an expanding manufacturing facility does not qualify for the manufacturer's sales tax exemption under Utah Code §…
Were photo plots and drill tapes taxable when a manufacturer retained possession but its contracts transferred title before using them to make burn-in boards?
Yes. The audit record supported title transfer to the customers, making the plots and tapes separate sales in California even when the finished boards later shipped out of state.
Was a satellite sale taxable in California when the builder retained title and control until successful insertion into the prescribed orbit?
No on the stated assumptions. Title and control passed only after successful orbit insertion, so the sale occurred outside California regardless of where the satellite was above Earth.
Were large steel-frame buildings assembled onsite construction projects even when they rested by their own weight and could later be dismantled?
Yes. Their size, sectional onsite assembly, and inability to move as a unit made furnish-and-install contracts construction contracts whether anchored or resting by their own weight.
Does a federal agency keep its sales and transient room tax exemption on employee lodging when a contractor handles the billing?
Yes, but only if the government's own money actually pays the hotel — the check must be made payable to the hotel and traceable to the agency's funds, not simply channeled through a contractor's own…
Were capital assessments charged to proprietary members of a nonprofit Texas country club subject to sales tax?
Yes. The assessments were part of the taxable sales price of private-club membership because Section 151.007(e) included dues, fees, initiation fees, and other assessments required for membership or…
How should a seller document tax-free class-ring sales to a university bookstore, and when could it accept the bookstore's claimed university exemption?
A bookstore buying rings for resale had to provide a resale certificate, not a government exemption certificate. A properly completed university exemption certificate could protect a good-faith…
Were fares on a U.S.-flagged vessel taxable when it either carried passengers between ports or left a Florida port and returned without any intervening landing?
Port-to-port fares were nontaxable passenger transportation. A cruise that left and returned to the same Florida port without landing elsewhere was a taxable admission, even if it entered…
Were separately billed chemical-toilet cleaning charges excluded from taxable rent as optional services?
No. Separate invoices did not overcome oral contracts and actual practice showing cleaning was mandatory; the service charge stayed taxable rent.
Could a church buy telephone service for its pastors' parsonages tax-free when the phones had some personal use?
Yes. The Comptroller said churches could purchase telephone service for parsonages tax-free by giving the telecommunications provider an exemption certificate.
How did Texas tax cathodic corrosion-protection systems installed on existing pipelines, well casings, tangible equipment, or new construction?
Installation on an existing nonresidential pipeline or well casing was taxable real-property repair or remodeling on the total charge. Installation on equipment remaining tangible personal property…
Were separate charges taxable when a manufacturer optionally preassembled new steel stampings into sections to make jobsite installation easier?
Yes. Preassembling the stampings was taxable as a service forming part of the sale or as fabrication, not installation, even if optional and separately charged.
Was a 25% charge for manufacturing and delivering measurement equipment within five working days taxable?
Yes. The optional expedite service was part of the equipment sale and the 25% charge was included in taxable gross receipts.
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.