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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Did Texas treat a mobile home as a taxable motor vehicle each time it was sold, regardless of its later use?
Yes. The 1979 letter treated a mobile home as a motor vehicle and imposed the historical motor vehicle sales tax on its first retail sale and every later resale. The purchaser paid when titling and re…
Did Texas tax an automobile extended-service policy, and who paid tax on parts used for covered repairs?
The extended-service policy itself was not part of the vehicle's purchase price and was not subject to the historical motor vehicle tax or Limited Sales or Use Tax. Parts used for covered repairs were…
How did Texas apply minimum motor vehicle rental tax to an initial fleet, replacement vehicles, and dealer rentals?
The title owner owed at least the historical minimum tax on its initial rental fleet without a fair-market-value deduction. Replacement vehicles could use the replaced vehicle's fair-market-value dedu…
Could the Texas Comptroller require a Social Security number on a historical motor vehicle rental-tax application?
The Comptroller said yes. It cited 42 U.S.C.A. § 405(c)(2)(C)(i), which allowed a state administering a tax law to use Social Security numbers to identify affected individuals and to require an affect…
Could a buyer receive a Texas motor vehicle sales-tax refund because the purchased car was wrecked soon afterward?
No. The historical tax applied to the vehicle sale regardless of what happened afterward, so wrecking the car soon after purchase did not create a refund. If the buyer traded the wrecked car for a new…
Were trailers built with chassis, axles, and wheels for highway towing treated as motor vehicles in Texas?
Yes. Based on the described undercarriage, the trailers were motor vehicles for tax purposes and subject to motor vehicle sales tax. The purchaser owed the tax at title and registration, while the sel…
Did Texas impose motor vehicle sales tax when a wholly owned subsidiary transferred vehicles to its parent in liquidation or merger?
No. The 1979 division interpretation imposed no motor vehicle sales tax when a wholly owned subsidiary transferred vehicles to its parent through a liquidating dividend on dissolution or a statutory m…
Were Royal Traffic Director Message panels motor vehicles subject to Texas motor vehicle sales or use tax?
No. Texas classified the manufacturer-built traffic message panels as movable specialized equipment because they performed a specialized function and were not designed to carry a divisible highway loa…
Did a dealership employee owe Texas motor vehicle tax on a purchase-price rebate, title fees, or the dealer's commission?
No. Under the described employee purchase plan, the rebate reduced what the buyer was actually charged and was not taxable consideration. Separately stated title and license fees also were excluded. T…
Was an organization properly formed under former Texas electric-cooperative law exempt from motor vehicle sales tax?
Yes. The Comptroller determined that an organization properly formed under former Texas Revised Civil Statutes article 1528b was exempt under section 30 from the motor vehicle sales tax imposed by for…
Who owed Texas motor vehicle tax on a 36-month lease, and was the lessee legally required to reimburse the lessor?
The lessor owed the historical motor vehicle sales tax when it bought the vehicle in Texas for a 36-month lease. The law imposed no tax on the lease payments and did not require the lessee to reimburs…
Was a model 520 prime mover with a rotary ax attachment a motor vehicle subject to Texas motor vehicle use tax?
No. Based on the submitted specification sheet, Texas determined that the model 520 prime mover with a rotary ax attachment was not a motor vehicle and therefore was not subject to historical motor ve…
Was a glider kit subject to Texas motor vehicle tax, and what happened when the rebuilt truck was later sold?
The kit itself was parts, not a motor vehicle, so historical motor vehicle tax did not apply; Limited Sales, Excise and Use Tax was paid to the seller. The same owner's retitling of the rebuilt truck …
Who paid Texas motor vehicle tax when a collector car was sold at auction, and did the auctioneer collect it?
The purchaser owed the historical motor vehicle sales tax on a collector car bought at a Texas auction, including a casual sale between individuals. Neither the auctioneer nor seller collected it. The…
Was a separately labeled collision-protection charge exempt insurance or a taxable collision-damage waiver on a car rental?
It was taxable. Separately stated insurance charges were outside the historical gross rental receipts tax, but a collision-damage waiver was not insurance. The customer paid a service charge to waive …
What proof did Texas require to refund vehicle use tax after Florida later imposed tax on the same vehicles?
Texas credited legally imposed sales or use tax actually paid to another state against its historical motor vehicle use tax. For vehicles bought and delivered in Florida, the refund request needed pro…
How did Texas tax a U-Haul trailer rental and separately stated insurance when the rental company charged five percent?
The historical tax was four percent of the trailer rental charge, collected and remitted by the rental agent. Separately stated insurance was not taxable. Because the company charged five percent on b…
Was a mobile-home buyer's Texas tax liability satisfied when the dealer collected money for tax but did not remit it?
No. The purchaser remained responsible for the historical motor vehicle sales tax until the State actually received it. The dealer's collection of money, accompanied by the false impression that the d…
How did Texas require rental companies to calculate minimum tax and report vehicles retired from rental service?
The rental certificate had to show the minimum tax for each vehicle and any trade-in or fair-market-value deduction at initial registration. When a titled rental vehicle left service, the owner listed…
Were heavy frac tanks rented for water storage motor vehicles subject to Texas sales, use, or rental tax?
No. The described frac tanks were not designed to transport property on highways and were not built from existing trailers, so Texas excluded them from historical motor vehicle sales, use, and rental …
Did Texas impose rental tax when a rental vehicle temporarily replaced a leased vehicle?
Only if the lessee paid an additional charge. The historical letter taxed that added rental charge but imposed no rental tax when the substitute vehicle was provided without an extra charge. Temporary…
Where did the cigarette tax stamp belong when clove cigarettes were individually sealed but also sold in a self-contained box of twenty?
The stamp followed the smallest self-contained unit sold. If cigarettes were sold separately, each sealed individual container needed a stamp. If twenty were sold together as one self-contained packag…
Was a related-company vehicle transfer taxable when the new corporation assumed the liens on the vehicles?
Yes. A transfer to a newly formed corporation could avoid historical motor vehicle tax when only stock was given, but not when the transferee also assumed vehicle debt. The assumed indebtedness was ta…
In a Nebraska motor-vehicle sublease chain, whose sales-tax election controls when the vehicle's owner has not elected to pay tax on the vehicle's cost but the intermediate lessor has?
The lessor's election governs. Under Revenue Ruling 01-78-15, when a vehicle owner rents or leases a motor vehicle to a lessor solely for re-lease to a lessee, and the owner has NOT elected to pay sal…
What did Texas's 1978 bulletin say about retitling a vehicle bought through another person's name?
Historically, later transfer to the true buyer generally triggered another sales, use, or gift tax when a vehicle was first titled in someone else's name. The bulletin allowed limited parent-to-former…
Did a Texas service member owe use tax on an out-of-state vehicle purchase, and could tax paid elsewhere be credited?
Yes. A Texas resident serving outside the state was subject to the same historical use tax as any other resident when returning and registering the vehicle. The tax used original purchase price less t…
Did Texas merchants collect ordinary sales tax on mopeds, tent trailers, boat trailers, and motorcycles?
No. The letter treated mopeds, tent trailers, boat trailers, and motorcycles as motor vehicles. The purchaser paid historical motor vehicle tax to the county collector at registration, and the seller …
How did Texas tax and register mopeds, and what happened when a merchant mistakenly collected ordinary sales tax?
A qualifying moped was a motor vehicle subject to historical motor vehicle tax at registration, although it was licensed rather than titled. If a merchant mistakenly collected ordinary limited sales t…
Did Texas rental tax apply to a manufacturer's mobile office buildings delivered to renters inside or outside Texas?
Delivery controlled. A mobile office building delivered to the renter in Texas was rented in Texas and its receipts were taxable, regardless of the rental agency's location. Delivery outside Texas—or …
Is a company that provides chemical (portable) toilets to customers renting tangible personal property, so its charges are subject to Nebraska sales and use tax?
Yes. Providing chemical toilets is a rental or lease of tangible personal property that is subject to Nebraska sales and use tax. Under Revenue Ruling 01-78-12, chemical toilets are tangible personal …
How did Texas document a federal surplus vehicle sale when the federal agency did not sign the seller affidavit?
The federal agency's Form 97-A served as its bill of sale. The purchaser completed and notarized the Seller, Donor, or Trader's Affidavit without a federal representative's signature, entering the sel…
Are a moving company's charges for packing taxable, and does the mover owe tax on the boxes, wrapping paper, and tape it uses?
A moving company's packing and moving charges are a nontaxable service, so the mover does not charge sales tax on its total service charge. But the mover owes Nebraska sales or use tax on the boxes, c…
Could a French foreign-service member assigned outside a U.S. embassy receive a Texas vehicle-tax exemption or refund?
No. The 1978 letter said Texas taxed every retail motor vehicle sale in the state and had no exemption for a foreign-service member who was not assigned to an embassy in the United States. The writer …
Who owed Texas motor vehicle tax on courtesy vehicles loaned by a dealership to a public school district?
The result depended on title. When the dealership held title and loaned the vehicles to the school district, the dealership owed historical motor vehicle sales tax on its purchase price. If the distri…
How did Texas document a dealer or lessor's fair-market-value deduction for a replacement business vehicle?
A qualifying dealer, lessor, or rental company could subtract a replaced vehicle's fair market value from a replacement vehicle's purchase price when both were titled in its name for business or perso…
Was providing sign trailers a taxable rental, and how did Texas tax the provider's trailers, signs, and materials?
Providing sign trailers was an advertising service, not a rental, because customers lacked exclusive use. The provider did not collect rental or limited sales tax from customers. It paid historical mo…
Did a Section 501(c)(3) horse-show association's ordinary sales-tax exemption also exempt its car rentals from Texas vehicle rental tax?
No. The 1978 letter said the association's limited-sales-tax exemption did not carry into the separate motor vehicle rental tax, which then had no general Section 501(c)(3) exemption. STAR now flags a…
Is a charge for grooming a pet subject to Kansas sales tax, and is there any exception?
Yes. Under a 1977 amendment to K.S.A. 79-3606(p), pet shop operators and others who perform pet grooming services must collect and remit Kansas sales tax on the gross receipts from those charges. The …
Was taking over a vehicle and its unpaid note taxable consideration even when no cash was paid to the prior owner?
Yes. Taking over the prior owner's note was consideration even though the prior owner received no cash or other property. The historical taxable amount was the debt assumed when the vehicle changed ha…
What procedures did Texas's Motor Vehicle Rental Tax Guide prescribe for rental businesses beginning September 1, 1977?
The guide created a paper-era system for retailer permits, tax-free rental-vehicle registration, gross-receipts tax, vehicle-by-vehicle minimum tax, fair-market-value deductions, exemptions, certifica…
Did Texas's historical new-resident vehicle tax apply to a former Texas resident returning with cars registered in California?
Yes. The letter treated the returning former resident as a new resident because the vehicles were brought into Texas after being registered in that person's name in California. STAR warns that the $15…
Could Washington sales tax paid on lease payments reduce Texas use tax on a vehicle leased outside Texas?
Yes. Texas based historical use tax on the lessor's acquisition price rather than later lease payments, but credited sales tax already paid to Washington on those payments. The operator owed the Texas…
Did merely passing through Texas in a Canadian tour bus bought outside Texas trigger motor vehicle use tax?
No, on the assumptions stated. The bus would be purchased outside Texas and would only pass through on tour without extended Texas visits or stops, so its transitory presence did not trigger historica…
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…
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