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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When were Florida waste-tire and lead-acid-battery fees due on new rental vehicles, and could rental companies recover those costs from customers over multiple rentals?
The rental company owed the full tire and battery fees when a vehicle was first rented in Florida after purchase for resale. It could recover the cost through smaller customer charges over later…
Were fees to enter and use a children's fitness and play facility subject to Utah sales tax?
No. The Commission treated the children's fitness and play facility as a health club, so fees paid to enter and use it were not subject to sales tax. The business still had to collect tax on…
Was a large wrought-iron gate fabricated offsite and installed on concrete-embedded posts a material or a fixture?
It was material. The Board treated the 7-foot-6-inch by 20-foot-1¼-inch gate like fencing or doors despite offsite fabrication and unit installation.
Are frozen or partly frozen foods sold through vending machines exempt because they are not ready for immediate consumption?
No. Food sold through vending machines was taxable under Rule 3.293(g)(1) even while frozen or partly frozen, and providing customer heating facilities did not change that result.
Did sharing 20% of school vending receipts make the operator and school partners so the food sales were exempt?
No. The operator owned, stocked, serviced, insured, and bore the risk on the machines; the school mainly supplied space and utilities. Its 20% share was percentage rent, not partnership profit, so…
Is a fee for converting a customer's real-estate database into a format compatible with licensed software taxable in Texas?
Yes. Converting and manipulating the customer's data was a taxable data-processing service under Rule 3.330(a), and any charge to modify the sold software was also taxable under Rule 3.308(b)(1).
Are charges for moving telephones and activating, connecting, or adding office cabling and jacks taxable in Texas?
Yes, when the work included activating or connecting building wiring, Texas treated it as taxable real-property remodeling. If taxable remodeling was part of the job, the entire charge was taxable…
Are employee travel and living expenses billed to Texas software customers subject to sales or use tax?
Yes. The software seller's separately billed employee travel and living expenses were part of the total amount charged for the taxable software transaction and were subject to Texas sales or use tax.
Does a creditor owe Texas sales tax when it takes furniture from an insolvent customer in exchange for reducing the customer's debt?
Yes. Taking furniture in exchange for reducing an insolvent customer's debt was a taxable sale. The tax base was the debt forgiven, or the furniture's book value if that amount could not be determined.
When is a packaged bus tour taxable as an amusement service rather than nontaxable transportation, and how are meals and admission fees treated?
A primarily guided scenic tour was taxable as amusement, while a trip mainly transporting passengers to attractions was not. Meals and taxable admissions still had to bear tax, either from the…
Was a seven-year lease of a nursing-home facility exempt from Florida tax when the operator rented rooms to patients and provided meals, medical care, and related services?
Only partly. Rent allocable to patient dwelling units and areas used exclusively for patients' special care was exempt. Rent allocable to business offices, kitchens, public cafeterias or…
Which South Carolina activities did historical SC Revenue Ruling 91-16 treat as protected solicitation under Public Law 86-272?
The ruling protected an out-of-state seller only when its South Carolina activity stayed within solicitation of orders for tangible personal property, with approval and fulfillment from outside the…
Which interest did SC Revenue Ruling 91-15 treat as exempt from South Carolina income tax, including through a mutual fund?
The ruling exempted qualifying interest on South Carolina obligations, federally designated tax-exempt agency or instrumentality obligations, and direct U.S. obligations meeting the four-part Smith…
Were skid-mounted backup generators installed at a federal launch site fixtures or machinery and equipment for California sales-tax purposes?
They were fixtures. Their removability aided maintenance, but they were integral and necessary to launch-site power, so the seller's sale to the prime contractor was taxable.
Were synchronized slide-and-audio modules taxable in full, and did the producer avoid use tax on photographs by claiming pre-use title passage or client agency?
The full module receipts were taxable, and use tax applied because the producer failed to prove either client agency or a sale of the photographs before reproduction.
Can an entire operating segment qualify as an occasional sale, and is a no-consideration asset distribution on joint-venture dissolution taxable?
The operating-asset sale was nontaxable if every Rule 3.316(d) occasional-sale condition was met. A legitimate joint venture's no-consideration distribution to partners on dissolution was not a sale.
Did Texas PTA groups have to collect sales tax on concession-stand food and drink sales at school football games?
No, for the PTA concession sales described. They qualified under Section 151.314(e) because the school-associated groups conducted fundraisers and all net proceeds went to the groups for their…
Was screen-printing a customer's used T-shirt taxable fabrication or repair work?
It was repair work. Tax applied to separately charged materials, or to their fair retail value when they exceeded ten percent of the total charge; the remaining repair charge was nontaxable.
We're a federal government-chartered corporation that buys and resells mortgages nationwide. When mortgagors on our New York mortgages default and we foreclose or take a deed in lieu of foreclosure, are we exempt from New York's Real Property Transfer Gains Tax and Real Estate Transfer Tax as the transferee, and later as the transferor when we resell the foreclosed property? And do we still have to file the tax return paperwork even if we're exempt?
Exempt as a federal instrumentality, but filing obligations still apply. The Federal Home Loan Mortgage Corporation (Freddie Mac), a federally chartered corporate instrumentality of the United…
Did a South Carolina automobile dealer owe sales tax on parts withdrawn from inventory for warranty repairs when the customer made a copayment?
Yes. The Commission held that a dealer had to include parts withdrawn from inventory in gross proceeds when warranty customers made copayments. The withdrawal escaped tax only if the warranty was…
Was an asset transfer to a wholly owned subsidiary taxable when the parent received cash days later through a joint-venture financing arrangement?
Yes under this recommendation. Staff treated the linked cash-back financing as consideration, not a dividend. The source records $225,379.25 moving through the entities but later calls corrected…
Were dehydrated muesli, pasta, chili, and soup meal replacements exempt even though they contained much powder and were designed to reduce calories?
Generally yes. Counsel treated those product categories as traditionally accepted foods, but no labels were supplied, so the letter did not rule on any specific item.
Did Texas personal income, inheritance, estate, or gift taxes increase the tax burden on military survivor-plan annuity payments in 1991?
No. The Comptroller said Texas had no personal income tax and taxed only to the extent of the federal credit for state death taxes, so the annuity owner or recipient faced no added Texas burden.
How was Florida documentary stamp tax calculated on deeds in lieu of foreclosure, and was tax due again when the lender or its partnership later received foreclosure certificates of title?
The deed-in-lieu tax base included the unpaid debt discharged, accrued unpaid interest, and other unrelated mortgages encumbering the property. For the two properties, that meant the $63 million or…
Could multistate credit-report customers get refunds of Texas tax already collected because they later elected to pay tax directly?
No. The service correctly collected the tax, and Rule 3.325 allowed a refund only when the transaction was exempt—not when a purchaser could have elected to pay the Comptroller directly.
What did South Carolina's September 1991 notice say about access to sanitized Tax Commission decisions and their index?
Sanitized Commission decisions and an index covering 1987 through June 30, 1991 were available for review at the USC law library and nine Tax Commission district offices, with quarterly updates…
What South Carolina tax interest rate applied from October 1 through December 31, 1991?
The rate for tax underpayments and overpayments from October 1 through December 31, 1991 was 10%. Interest generally compounded daily, while underpayments of declaration of estimated tax used simple…
Can I file my Nebraska tax returns on reproduced or substitute forms instead of the official printed ones?
Yes. Nebraska accepts reproduced and substitute versions of its official tax returns and schedules for every Nebraska tax program, as long as the forms follow the Department's 'Guidelines for…
How did Texas tax underground-irrigation installation, repair, remodeling, and complete replacement for residential and nonresidential property?
Nonresidential repair charges included taxable labor and materials; residential repair labor was exempt but materials taxable. For new construction or complete replacement, labor was exempt and…
Was a customized demographic report exempt as proprietary information when the provider could reuse the underlying data for other clients?
No. Although the finished report could not be resold, the provider could reuse the same underlying information for other customers, so the information was not proprietary and the service was taxable.
Was a student scholarship-matching service taxable, and when could its printed personal reports be bought for resale?
The matching service was taxable information service. Personal reports sent to students could be printed for resale, but reports sent to third parties and other business materials remained taxable…
Was a computer-generated custom diet plan taxable, and were diet cookies sold as meal replacements or supplements taxable?
The custom diet plan was taxable data processing, and the Texas seller could give its out-of-state processor a resale certificate. The diet cookies were not taxable as meal replacements or food…
Were custom directories, large metal consoles, and dimensional letters fixtures when factory-built and installed with substantial onsite work?
Yes. They retained their identities as sign accessories after installation; architectural integration, size, electrical work, and labor to position or attach them did not make them materials.
When were custom architectural signs materials rather than fixtures under a manufacturer's lump-sum installation contracts?
Factory-built signs that remained identifiable were fixtures. Materials treatment required actual piece-by-piece jobsite construction or a qualifying structure whose components lost their identity.
Were parking and traffic-control signs materials merely because they were installed on posts, concrete bases, garages, or buildings?
No. Prefabricated signs that retained their identity were fixtures; material treatment depended on building the sign piece by piece at the site or creating a qualifying large structure.
How did Texas tax a parent's formation transfer of vehicles to a subsidiary and a later sale of all subsidiary stock?
The formation-stage vehicle transfer was not taxed when the new subsidiary gave only stock; added consideration, including lien assumption, made it taxable. The letter separately said motor vehicle…
Was a photocopier charge based on the number of copies made taxable when it was billed separately from the machine's other rental and service charges?
Yes. The per-copy or meter-click charge was taxable as part of the photocopier rental price because it adjusted the rent according to actual use. Separate billing did not change the result.
Was the sales-tax permit fee due when the permit was issued before October 1, 1991, but the permit holder's first taxable sale occurred on or after that date?
No. The internal memorandum concluded that H.B. 11, Section 14.16(b), did not impose the permit fee when the permit itself was issued before October 1, 1991.
Historically, how did Florida tax unencumbered real property transferred from a partnership to a corporation owned in the same proportions by the same people?
The obsolete TAA taxed the parcel contributed to the partnership after July 1, 1986 on fair market value as a corporate capital contribution, while imposing only minimum tax on two unencumbered…
Did a land seller owe documentary stamp tax on up to $1.5 million of possible post-closing payments that depended on government purchasers later obtaining permits and releases?
No. The seller owed tax on the $9.581 million paid at closing, even though the public purchasers were exempt. The additional $1 million and $500,000 payments depended on uncertain future regulatory…
Did Florida documentary stamp tax apply when a former production credit association transferred assets and obligations to 20 successor associations?
No. Revised TAA 90B4-010R concluded that deeds, notes, mortgages, debentures, and other obligations transferred between the former production credit association and its 20 successor associations…
Which electricity used by a mobile-home park's water system was exempt, and how did Texas treat a meter serving both exempt and nonexempt uses?
Electricity used to extract water, move it to holding tanks, and process it was exempt; electricity used to transport processed water was not. A mixed-use meter required the predominant-use analysis…
Was demographic and marketing information taxable when customers selected regions and databases but the underlying information remained available to other customers?
Yes. The information services were taxable because the information was available to multiple customers and was not proprietary to one client. Customer-selected regions and databases did not make it…
Did the Utah State Tax Commission decide whether vehicles bought in Utah and immediately transferred to a bottler's out-of-state subsidiaries qualify for the nonresident-purchaser sales tax exemption?
No. The Commission refused to issue an advisory opinion at all, because the taxpayer's exemption question was already pending on appeal before the Commission itself -- ruling in advance would have…
Was Stretch Island Fruit Leather taxable as candy, confectionery, or snack food under the California rules applied in 1991?
No. California treated the compressed dried-fruit product as nontaxable because it was neither candy or confectionery nor snack food.
Was a motor-vehicle extended warranty taxable, and how did Texas treat parts, labor, and a customer deductible on repairs performed under the warranty?
The 1991 letter said the extended warranty was not taxable. Parts used for covered repairs were taxable, labor was not, and the deductible reduced the total charge. STAR now flags the cited Rule…
When was sales tax due on a financing lease entered into by a yearly filer when the transaction created more tax liability than the yearly or quarterly filing limits?
Tax was collected when the lessee took possession or when the first payment became due, whichever came first. Because the liability exceeded the stated yearly and quarterly limits, the transaction…
Was chemically injecting trees to prevent oak wilt taxable when the provider performed no tree trimming, removal, or other ancillary landscaping?
Yes. Texas treated identifying or treating tree disease as a taxable arborist and real-property service. The entire service price was taxable, while transferred products and supplies could be bought…
How did Texas tax installing and maintaining reverse-osmosis water equipment when the company might sell, lease, or retain control of the units?
Treatment depended on the agreement. A sale and installation or an equipment rental was taxable, with maintenance treatment varying by property type. If the company retained ownership, operation,…
Under SC Revenue Ruling 91-14, did a coin-operated batting cage owe admissions tax and an amusement-machine license tax?
The charge to use a coin- or token-operated batting cage was subject to the historical admissions tax because the cage was a place of amusement. But a batting machine on which admissions tax was…
When did SC Revenue Ruling 91-13 let a machine shop buy production inputs, machinery, and electricity without sales or use tax?
A machine shop qualified when manufacturing tangible personal property for sale was regular, continuous, and a substantial part of its business. Inputs becoming components or used directly in that…
Could a UPS charge printed on the delivered package separately state freight when the wine invoice used a lump-sum price?
Yes. California treated the UPS stamp like postage, allowing exclusion of actual freight, but did not allow overcharges on some sales to offset undercharges on others.
Which purchases by commercial vessels were tax-exempt, and did sales to individual seamen, foreign passengers, or resellers qualify automatically?
Only specified vessel purchases qualified with a complete exemption certificate. Commercial vessels over eight tons could exempt repair and component items, and qualifying interstate or foreign…
Did a transfer agent's Florida custody and processing of customers' stock certificates, accounts, dividends, proxies, and records require it to file or pay intangible tax on that property?
No. The described transfer-agent, dividend-disbursing, and shareholder-service tasks were ministerial processing performed under customer instructions without special discretion or judgment.…
Did California use tax apply when a cruise company bought an out-of-state vessel, chartered it back for 91 days of out-of-state use, and then brought it here?
No under the regulation then in effect. More than 90 days of out-of-state use rebutted the presumption that the vessel had been purchased for California use.
Were annual hunting-rights fees and additional fees charged per bird taxable when they granted hunters a right in private real property?
No. The Comptroller treated both the annual hunting-rights charge and the per-bird charge as payment for a personal license or profit a prendre in private real estate, not as taxable sales.
Is each fund of a multi-fund regulated investment company (mutual fund) a separate corporation for Connecticut corporation business tax?
Each fund is treated as a separate corporation. A multi-fund regulated investment company (a RIC -- essentially a mutual fund with several 'series' funds) asked how Connecticut's corporation…
Is delivering video programming to consumers by microwave or satellite a 'community antenna television service' subject to Connecticut sales tax?
Yes -- it is a 'community antenna television' (CATV) service. A company delivered video programming directly to consumers by microwave or satellite, with customers using descrambling equipment. DRS…
Is deeding land from co-tenants to their newly formed partnership a taxable contribution of partnership assets under Connecticut's conveyance tax?
Taxable. Three people held two parcels as tenants-in-common since 1983 and filed partnership tax returns, but didn't sign a formal partnership agreement until 1990 -- and that agreement described…
Does incorporating a farm void the individual farmer's tax exemption permit, and can the new corporation use the farmer's sales history to qualify?
Two traps. A farmer with a Connecticut Farmer Tax Exemption Permit planned to transfer his farm to a newly formed corporation in exchange for its stock. DRS ruled: (1) the transfer makes the…
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