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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Were charges to place and remove Realtor-owned for-sale signs at residential properties taxable when the service provider did not sell, assemble, or erect the signs?
No. Labor to place or remove the Realtor-owned signs was nontaxable installation under the stated facts. The result would change if the provider sold the signs or performed taxable assembly or erection.
How should a cabinet contractor calculate and report Florida tax on cabinets it manufactures for lump-sum real-property improvement contracts?
The contractor owed use tax on the actual manufactured cost of the cabinets—not the contract price, a marked-up retail value, or an arbitrary percentage. Cost included direct materials, direct…
Was use tax due when a frequent-renter member redeemed award points for a free Florida car-rental certificate?
Yes. Delivering the vehicle for use in Florida made the award rental taxable even though the certificate covered the stated rental charge. For the three-day example, the company correctly calculated…
Could a prime contractor act as a direct-payment permit holder's agent and issue direct-payment exemption certificates for construction materials?
Yes, if the agency agreement authorized it. The contractor could buy materials incorporated into the permit holder's realty on its behalf, but not consumable supplies or other taxable contractor items.
When were wrapping and packaging supplies exempt for a business handling self-manufactured goods, purchased inventory, bundled components, assembled products, or third-party packaging?
Packaging for the taxpayer's own manufactured product was exempt. Packaging purchased for acquired inventory, mere bundling, or labeling and instructions was taxable; packaging a newly assembled…
Did the carrier exemption cover consumable aircraft-repair supplies, and could a shop servicing both private and licensed-carrier aircraft claim exemption for qualifying tools and equipment?
Consumable repair supplies were not exempt under § 151.328(d). A mixed-use shop was not automatically disqualified, but it needed records separating exempt and taxable uses and could claim exemption…
What does the current official PDF of South Carolina's policy-document index notice through September 30, 1991 contain?
The letter announces an index of Revenue Rulings, Revenue Procedures, Private Letter Rulings, Technical Advice Memoranda, and Information Letters issued from 1987 through September 30, 1991. The…
Was pulling removable or cappable data and telecommunications cable through ceilings and walls of an existing building taxable?
Yes. Texas treated the work as taxable remodeling because it replaced or upgraded part of an existing structure. The company had to collect sales tax on the total charge even though no walls were…
Were Tennessee Valley Authority bonds subject to Florida intangible personal property tax?
No. Federal law exempted TVA bonds, principal and interest, from state and local taxation other than estate, inheritance, and gift taxes. That federal immunity barred Florida's former intangible…
Were monthly payments during a buyer's early occupancy of commercial property taxable rent when half might later be credited to the purchase price and all could become liquidated damages if closing failed?
Yes. Every monthly payment was consideration for current use and occupancy and therefore taxable rent. A possible later purchase-price credit did not change the payment's character before closing,…
Were a publisher's sales of advertising magazines to franchisees exempt when the franchisees regularly distributed the publications free by newsstand and home delivery?
Yes, for sales on or after July 1, 1991. The magazines met all four statutory conditions: they were free to the public, circulated by home delivery or newsstand, published regularly, and primarily…
Is an optional 'loss protection' charge on leased pagers taxable, and does it need to be separately stated?
Not taxable, if it's broken out in the contract. Pro Net leases pagers and offers optional 'loss protection' (about $1-$1.50 per pager monthly) that spares a customer from paying the full value of a…
Did an employer have to remit Florida sales tax on 10-cent bottled soft drinks sold at cost to employees through its own vending machine?
Yes. Drinks sold ready for immediate consumption from a vending machine were taxable even though the employer made no profit. The employer should buy the drinks for resale without paying tax to the…
Were drums and liners used to package a manufacturer's products exempt after October 1, 1991, and did returnability change the treatment?
Nonreturnable drums and the liners qualified for exemption. Returnable drums were taxable to the manufacturer when purchased. The 1991 packaging-law change did not eliminate the…
Did rebuilding and sometimes enhancing used telecommunications equipment qualify the business as a remanufacturer entitled to exempt packaging supplies?
Yes. Texas treated the business as a remanufacturer, so it could buy wrapping and packaging supplies for the rebuilt equipment tax free by giving suppliers an exemption certificate.
Could a Texas box seller sell corrugated shipping boxes tax free to recyclers that sent processed material back to manufacturers?
Yes. Texas treated recycling as processing, so boxes used to ship recycled material to a manufacturer could be sold tax free when the recycler supplied a completed exemption certificate.
Were annual and individual sales of a monthly newsletter taxable even though it contained professional articles and was delivered by second-class mail?
Yes. Texas classified both subscription and non-subscription sales as taxable information services because the publication was not a magazine under § 151.320(b) and Rule 3.299(b)(1). The publisher…
How did Texas tax a contract that removed an old microwave tower and repaired the roof, then designed and installed a new pole and antenna?
Old-tower demolition was nontaxable, but roof repair and waste removal were taxable; the whole Project A charge became taxable if those taxable parts exceeded 5% unless demolition was separately…
Was the subscription price exempt when the publications qualified as magazines but were mailed at Library Rate rather than entered as second-class mail?
No. The publications qualified as magazines, but their subscription price was taxable because they used Library Rate fourth-class postage. The exemption required a semiannual-or-longer subscription…
Could Texas waive the 90-day purchase window for an enterprise-project sales-tax refund because unusual circumstances delayed project designation?
No. The Comptroller said it lacked authority to create an exception to the statutory 90-day window, despite the business's condemnation pressure and delayed enterprise-project designation.
Could a Texas business imprinting blank caps, shirts, pens, or calendars for sale buy the packaging for those finished goods tax free?
Yes. Texas treated buying blank merchandise and imprinting it for sale as manufacturing or processing, so packaging for the imprinted goods could be bought with an exemption certificate.
Could adhesive used to seal boxes be sold tax free in Texas as manufacturing or packaging material?
Sometimes. Adhesive was tax free when sold to manufacturers packaging their own products or box manufacturers completing boxes, with an exemption certificate; other buyers owed tax.
Could a Texas waste-removal company issue a resale certificate for taxable transfer-station services that it resold to customers?
Yes. Because the waste-removal company resold the transfer station's services to customers from whom it collected sales tax, the station could accept a resale certificate instead of tax.
Were live and automated telephone-answering services subject to Texas sales tax beginning October 1, 1991?
Yes. Charges for all answering services became taxable on October 1, 1991. The letter noted that automated answering services had already been taxable since 1985.
Could Texas cotton ginners buy the bagging, metal ties, and identification tags used to bale processed cotton without sales tax?
Yes. The Comptroller treated cotton ginning as processing cotton for sale, so ginners could buy bagging, ties, and bale-identification tags tax free with an exemption certificate.
Must a Texas manufacturer obtain a new engineering study to keep a predominant-use exemption for natural gas or electricity?
No, not while the business operation and utility use remain unchanged. The Comptroller said the original engineering study remains valid under those facts.
Could a contractor buy 35mm film for resale when DMV employees exposed it and the contractor used it to produce driver's licenses?
No. The recommendation treated the contractor as consuming the film because it did not become part of a license, the contract retained title in the contractor, and DMV paid per license rather than…
Were a nonprofit private dining club's initiation fees, dues, privileges, and amusement services exempt because the club occupied a historic landmark?
Yes. The historic-place amusement exemption covered the club's initiation fees, dues, special privileges, and amusement services, but meals and nonalcoholic beverages remained taxable.
Could an aircraft-parts dealer buy required preservation and packaging supplies tax free because it held U.S. military contracts?
No. Military-contract packaging requirements did not control. Because a separate entity manufactured the parts, the company was a distributor or dealer and owed tax on packaging for those parts and…
Were engineering, installation, and reassembly charges taxable when an Oregon manufacturer sold a custom oven fixture to a California customer?
Engineering and the disputed reassembly portion were taxable use-tax measure, while installation labor was not; the seller had to collect the tax and oral advice gave no relief.
Could California reconsider a denied refund claim after the taxpayer let the 90-day deadline for filing a refund lawsuit expire?
No. The memorandum concluded that the Board lost jurisdiction when the taxpayer did not sue within 90 days after mailing of the denial notice.
Were custom-oven engineering and reassembly charges included in California's use-tax measure?
Yes. Design engineering was part of the oven sale, and reassembly remained taxable because it was not separately stated and the buyer was not shown free to hire someone else.
Was a catering house the propane retailer when it collected drivers' payments and retained ten cents per gallon?
No. The propane company delivered and controlled the fuel, set the price, and billed each truck. The catering house only collected the fixed charge and retained a service fee, so the recommendation…
Was transferring property to a newly uncapitalized corporation for 100% of its stock a taxable Texas sale?
No. The Comptroller concluded that an initial property contribution for all stock of an uncapitalized corporation was not a taxable sale, but later stock-for-asset trades were taxable.
Which fees under the described software sublicensing program were taxable?
Participation, sublicense, royalty, porting-service, certification, and subcontract support fees were excluded; porting-kit and direct end-user support fees were taxable.
Did dealer-assisted sale of an old vehicle to a third party create a Texas trade-in reduction for the replacement vehicle?
No. Under the historical rule, the old vehicle had to be physically traded to the seller. Having the dealer sell it for the buyer and apply the proceeds to the down payment did not reduce the…
Could commercial nurseries buy pots, bowls, flats, hangers, boxes, and other plant packaging tax free?
Yes, when the nursery grew or fostered the plants and supplied exemption documentation. A reseller that merely bought and held potted plants for sale had to pay tax on its packaging supplies.
Could a Texas meat processor buy containers, liners, bags, strapping, vacuum packaging, and tape tax free for frozen meat it processed for sale?
Yes. The processor could buy the listed packaging tax free for meat products it processed for sale by giving its supplier an exemption certificate.
Did Texas's new boat and boat-motor tax apply to canoes, kayaks, rowboats, rafts, paddle craft, and electric motors?
No. The new 6.25% boat tax excluded vessels designed for paddles, oars, or poles, including canoes, kayaks, rowboats, and rafts, and it excluded electric motors.
Under historical SC Revenue Ruling 91-17, which county's one-percent local option sales or use tax applied to a delivery?
The historical one-percent sales tax followed delivery within the imposing county where the retailer was located. When property was delivered into another local-option county, the purchaser owed…
How did South Carolina's revised September 1991 local option tax guidance apply to contractors buying building materials?
A contractor could exempt building materials from the 1% local option tax only when the contract or qualifying written bid predated the county tax, a verified contract copy was mailed within six…
When did Texas sales or use tax apply to flexible food packaging bought from Texas or out-of-state suppliers?
Manufacturers and processors could buy qualifying packaging with an exemption certificate. Other Texas buyers owed sales tax or, for out-of-state purchases, use tax; seller-shipped out-of-state…
When could a Texas seller sell paper or plastic bags tax free to distributors, manufacturers, processors, repackagers, and prepared-food businesses?
Resellers could use resale certificates, and manufacturers or processors could use exemption certificates for packaging their own products. Repackagers of others' goods owed tax; food preparers qualified.
Were Texas seminar fees taxable, and who owed tax on books, audiotapes, and course materials distributed to participants?
Seminar and training fees were not taxable, but book and audiotape sales were. The provider owed tax on free materials and had to collect Texas tax because its representatives created Texas business…
Our limited partnership and a sister partnership are contributing all our real estate joint-venture assets to a newly formed REIT in exchange for 98% of its stock, then liquidating and distributing that stock directly to our limited partners. Does the initial contribution to the REIT, or the follow-on liquidating distribution of REIT stock to our partners, trigger New York Real Estate Transfer Tax?
Partially taxable on the contribution; the liquidation is exempt. Krupp Cash Plus IV Limited Partnership held a 50.10% interest in a joint venture that owned a New York shopping center. It exchanged…
Did monthly real-estate flyers qualify as printed sales messages when they contained articles and the printer shipped them by UPS directly to customers?
No. The submitted flyers did not principally promote goods or services, and direct delivery to the customers independently defeated the printed-sales-message exemption.
Was a photographer's full charge taxable when only about 15 of roughly 100 shoe-catalog photographs were ultimately used?
Yes. The entire charge was taxable gross receipts even though only 15 of approximately 100 photographs appeared in two yearly shoe catalogs and the rest were light-placement or test shots. Section…
What did a Texas interior decorator report each quarter, retain for audit, and tax when billing for furniture, design, or installation?
The decorator reported total sales, taxable sales, and taxable purchases and kept supporting records four years. Design was nontaxable; marked-up furniture and installation of items sold were taxable.
How did Texas tax engineering and real-property surveying services sold to municipalities, and the supplies used to provide them?
Engineering plans were nontaxable, while real-property surveying was taxable. An exempt municipality could give a certificate for taxable surveying, but the provider still owed tax on nontransferred…
Is installing energy-saving reflectors in existing fluorescent light fixtures a nontaxable capital improvement or a taxable installation?
Taxable. N.R.G. Savers installs custom-designed reflectors in existing fluorescent fixtures — repositioning the sockets and cutting a four-lamp fixture to two lamps (or two to one) to save energy.…
Is the Savings Bank Life Insurance Fund a New York State agency or instrumentality exempt from sales and use tax?
Yes. The Savings Bank Life Insurance Fund was created by an Act of the New York Legislature (L.1940, ch. 449; Banking Law § 270) as a body corporate within the banking department, and it grew…
Is New York sales tax charged on the federal luxury tax when a car is bought or leased, and how does it work on a lease?
No sales tax on the separately stated federal luxury tax. The federal retail excise tax on luxury items (26 U.S.C. ch. 31) is imposed on the consumer, so under regulation § 526.5(b)(2) it is…
If an out-of-state broker-dealer trades securities in New York only through independent brokers, but also acts as an AMEX options specialist requiring a leased exchange seat, is it doing business in New York for franchise tax purposes?
Yes. Taxpayer, a Delaware S corporation whose sole office is in Houston, Texas, trades stocks, bonds, and options on exchanges nationwide, executing all trades -- both proprietary and client --…
Were common and preferred shares of an out-of-state closed-end fund exempt from Florida intangible tax when its January 1 portfolio contained only exempt government obligations?
Yes. Both share classes were exempt in each year that the January 1 portfolio was limited to exempt Florida, U.S., agency, instrumentality, territorial, possession, and other exempt property.…
What special 1991 reporting periods did Texas announce for rental and interstate-carrier taxes, and what battery fee rules accompanied them?
The notice created one-time 1991 reporting periods for monthly and quarterly vehicle-rental filers and for interstate carriers after September 1 rate changes. It also distributed battery-fee…
Are dues and other fees for amusement services exempt when the services are provided in a historic building?
Yes, if the fees covered only amusement services provided exclusively in a place on the National Register of Historic Places or designated as a Recorded Texas Historic Landmark.
What documents let a property manager make tax-free purchases as an agent for the FDIC or RTC when receivership records do not include a new deed?
A written FDIC or RTC purchasing-agency agreement, the failed institution's deed, and proof of the receivership and its effective date were sufficient because title passed to the receiver by…
Are environmental testing and reporting services on a landfill's own ground taxable in New York?
It's not a taxable information service, but it can be taxable as a real-property service. A landfill hires outside vendors to analyze and report the levels of motor oil, groundwater, leachate,…
Since 1990, can a long-distance reseller still deduct the cost of local exchange carrier access service it buys and resells, and does it owe New York's section 186-a excise tax on international calls it merely routes through a New York gateway?
The resale mechanics changed, and the international-traffic question turned on facts not yet in the record. Since a July 1990 law change, local exchange carriers can no longer exclude receipts from…
When were hotel rooms paid personally by government employees exempt from Florida tax, and how did the answer differ for federal versus state or local employees?
Federal employees on official travel could claim exemption even when paying personally and receiving reimbursement, if the hotel kept travel orders or a signed federal-employee certificate. State…
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