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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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…
Did SC PLR 92-8 exempt a bioabsorbable guided tissue regeneration dental device as a dental prosthetic device?
No. The guided tissue regeneration device helped periodontal tissue or bone regrow and could help prevent tooth loss, but it did not itself replace a missing body part. The ruling therefore did not cl…
How did SC PLR 92-7 treat a wholly owned qualified REIT subsidiary for corporate income tax, annual-report, and license-fee purposes?
The subsidiary was not a separate corporation for South Carolina income-tax purposes: its assets, liabilities, income, deductions, and credits were treated as the REIT parent's. But it still had to fi…
Did SC PLR 92-6 require the Patriot Model 5000 coin-operated breath-alcohol tester to carry the historical amusement-machine license?
No. The Patriot Model 5000 accepted two quarters and delivered an alcohol reading with a humorous voice comment, but the ruling found its primary purpose was customer and public safety—not amusement. …
How did SC PLR 92-5 apply sales tax and admissions tax to one ticket covering both a four-course meal and a live show?
The ticket was subject to both taxes, but a reasonable, documented allocation could separate the bases: sales tax applied to the meal portion and admissions tax to the entertainment portion. If the op…
Did SC PLR 92-4 exempt prescription-only TENS pain-relief devices from sales and use tax as medicine or prosthetic devices?
No. The ruling treated TENS electrical nerve stimulators sold or leased by ABC Medical as taxable tangible personal property even when prescribed by a physician. They were devices rather than medicine…
Were Westinghouse Savannah River Company's purchases for its federal Savannah River Site contract exempt from South Carolina sales and use tax?
Yes, when Westinghouse Savannah River Company bought tangible personal property on behalf of the federal government under the described Department of Energy contract. The ruling relied on federal titl…
Did SC PLR 92-2 require a city redevelopment commission created under the Community Development Law to file a corporate annual report and pay the corporate license fee?
No. Although the historical corporate-license chapter did not expressly list this redevelopment commission among its exemptions, the Tax Commission had long treated public corporations as outside the …
How did SC PLR 92-1 treat a couple who moved from Wisconsin to South Carolina with a stock-loss carryover and installment gain from stock sold before the move?
For the anonymized couple's 1991 facts, South Carolina allowed either a full-year resident return or the statutory nonresident-method election for a part-year resident. Their stock-loss carryover equa…
Did SC PLR 91-6 treat ABC as a manufacturer or contractor when it prefabricated site-specific building framing packages?
ABC was a contractor, not a manufacturer, because it fabricated each framing package for its own construction work at a specific site rather than regularly producing property for sale to others. Sales…
How did SC PLR 91-5 compute admissions tax on the joint XYZ Club membership, and which club had to remit it?
Before April 1, 1992, the ruling taxed $102.50 of a $175 ABC-member payment and $75 of a $175 B Club-member payment after removing the dining-club and bona fide social portions. On or after April 1, 1…
Which components of ABC's high-purity water treatment system did SC PLR 91-1 treat as exempt manufacturing machines?
The ruling exempted the water-purification and process-delivery components—including carbon filters, chemical feed, ion exchangers, DI tanks and pumps, polishing equipment, hot and cold subloops, rege…
What local sales-tax changes and exemption rules does South Carolina's March 2026 chart identify for counties, municipalities, and the Catawba Reservation?
Effective March 1, 2026, the Department's charts add a new 1% Williamsburg County Capital Projects Tax beginning May 1, extend Lexington County's 1% School District Tax from March 1, and show Aiken Co…
When does South Carolina's Infrastructure Maintenance Fee apply instead of sales and use tax, and how are boat, farm, and utility trailers now treated?
The Infrastructure Maintenance Fee (IMF) -- 5% of the sale price or fair market value, capped at $500 -- applies instead of sales and use tax when an item must be titled or registered with the SC DMV;…
When are a wholesaler's sales of beer or wine to the military exempt from South Carolina beer and wine tax, and how are they reported?
Beer and wine sold to the U.S. Government (or a U.S. Government instrumentality) for Army, Navy, Marine, or Air Force purposes are exempt from South Carolina beer and wine tax under S.C. Code Ann. § 1…
Is durable medical equipment (DME) still exempt from South Carolina sales and use tax after the Orthofix decision?
No. Durable medical equipment (DME) is no longer exempt in South Carolina. In Orthofix, Inc. v. S.C. Department of Revenue (final June 26, 2024), the South Carolina Supreme Court held the DME exemptio…
Which South Carolina local sales and use taxes and exemptions applied beginning March 1, 2024, including on the Catawba Reservation?
SC Information Letter #24-1 provides the Department's local-tax and exemption charts effective March 1, 2024. It reflects reimposed 1% taxes in Horry, Newberry, and Spartanburg Counties; explains whic…
Which South Carolina local sales and use taxes and exemptions applied beginning May 1, 2023, including on the Catawba Reservation?
SC Information Letter #23-4 provides local-tax and exemption charts effective May 1, 2023, superseding Information Letter #23-1. It adds Beaufort County's 1% Green Space Tax, reflects reimposed 1% tax…
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