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 a Georgia-law trust acquire Florida intangible-tax situs when its sole trustee became a Florida resident, and who had to file and pay?
Yes. The trust corpus had Florida taxable situs because the sole trustee was domiciled in Florida on January 1. The trustee remained primarily responsible for filing and paying. The beneficiary…
Could an estate obtain a Florida estate-tax refund more than four years after payment when the IRS recalculated federal tax under a section 6166 election?
Yes for a year's recalculation if the estate filed the IRS Letter 249(SC), Supplemental Form 706, and refund request with Florida within 60 days. The Department treated that IRS letter as an…
Did an irrevocable subcontractor bid remain fixed-price when it ended if the general contractor lost the award, or when the public agency requested an extension?
The award condition did not defeat the bid because it was outside the subcontractor's control. A requested extension did, because the contractor could cancel instead of continuing.
Did an otherwise irrevocable construction bid remain fixed-price when a public agency requested an extension and the contractor could cancel instead?
No. The contractor's choice to cancel or voluntarily extend after a possible tax increase meant it could walk away and was not fixed to the extended obligation.
Were lease payments taxable when a customer sold previously taxed fixed assets to a finance company and leased them back under a financing-style agreement?
Yes. The customer's sale of its used fixed assets to the lessor qualified for the resale exemption, but the leaseback payments were taxable. Utah sales-tax law did not distinguish a lease intended…
Could a video-transfer business exclude creative and labor charges when it organized customer snapshots, slides, and home movies and added music to produce a video?
No. The entire charge for producing the video was taxable, including labor, service, and creative work, even if separately itemized or billed.
Were separately purchased wheelchair pads and cushions exempt as replacement parts in California?
Yes, when ordered by a physician to replace or supplement the wheelchair's basic seat and sold to an individual under the regulation's conditions.
Did Medicare Part A, Medicare Part B, Medi-Cal, and private insurance payments receive the same California sales-tax treatment?
No. The opinion treated tangible personal property paid under Medicare Part A as an exempt sale to the United States, while Part B, Medi-Cal, and private insurance followed the product's ordinary…
When were circuit-board testing charges taxable, and how was a customer-specific drilled fixture plate treated?
Testing boards sold for resale was nontaxable; testing retail-sold boards was taxable. A customer-owned drilled fixture plate was taxable regardless of the board sale.
Did a fixed subcontract price qualify for earthquake-tax protection when it incorporated a general contract's tax and termination terms?
Only conditionally. An incorporated tax-increase or unconditional-cancellation clause defeated fixed-price status; a qualifying general contract could carry earthquake-tax protection to subcontracts.
Was a college's exclusive food-service and vending agreement a nontaxable management contract or a taxable license to use campus real estate?
It was a taxable real-property license. The contractor operated for its own account, kept profits and absorbed losses, paid amounts expressly called basic rent and commissions for facility use,…
Did a vehicle brought into Texas owe motor vehicle use tax or the historical new-resident tax?
It depended on whether the owner qualified as a new resident. The 1991 letter said an out-of-state purchase generally incurred 6% use tax, with credit for another state's vehicle tax, but a vehicle…
Could a nonprofit corporation sell its own books, magazines, newsletters, and other writings without Texas sales tax?
Only if it qualified under the nonprofit-writings exemption and was not an educational organization. Rule 3.299 specifically excluded schools, colleges, universities, and similar institutions…
Did a railroad's electronic load-cell scale qualify for the Texas exemption for supplies essential to operating trains?
The Comptroller could not decide from the submitted facts. The railroad had to show how the load cells were attached to the bridge and identify the federal or state rule requiring railcars to be…
Was a lessor's reimbursement charge for personal property tax on leased equipment subject to Texas sales tax?
Not when the property-tax reimbursement was separately stated from the equipment lease price. If it was included in the lease price, sales tax applied to the entire charge. The Comptroller pointed…
Who had to collect and report Texas state and local sales tax on retail sales made by a Utah network-marketing company's independent distributors?
The direct-sales organization, CORP A, was responsible under Rule 3.286(a)(3). Tax reporting depended on whether distributors took customer orders before buying from CORP A or stocked products…
Were electricity and natural gas exempt when used to manufacture equipment the company retained and used to provide services to hotels and motels?
No. Utilities used to make equipment for the company's own service activity were taxable commercial use. Direct manufacturing utilities could qualify only for equipment sold, leased, or rented as…
Could change orders separate equipment sales from partially completed lump-sum real-property construction contracts for Texas sales-tax purposes?
Yes, if both parties agreed, the addendum separated every equipment purchase, delivery, and installation component, and the equipment invoices became part of the contract by reference. Contractors…
Did an auto dealer have to collect Texas sales tax when recovering, filtering, returning, or adding refrigerant during an air-conditioner repair?
Only if the dealer charged for the refrigerant. With no refrigerant charge, the procedure was treated as nontaxable motor-vehicle repair. A charge for refrigerant was taxable whether the gas was new…
Are an art advisor's consulting and support services taxable in New York, and when do they become taxable interior decorating and designing services?
It depends on what the art advisor actually does. Pure consulting — advising a client whether to buy particular works of art for their investment potential, or advising on framing/restoration…
If a trucking company taxed under Article 9 (not Article 9-A) makes an S corporation distribution to its sole shareholder from the accumulated adjustments account, can the shareholder deduct that distribution on their New York personal income tax return?
No deduction is available. Petitioner is the sole shareholder of a federal S corporation trucking company taxed under Article 9 (sections 183 and 184) rather than Article 9-A. For franchise tax…
Were charges for customer-controlled computer hardware and on-site or off-site computer data storage taxable in Texas?
Yes. Giving customers total operational control of computer hardware was a taxable rental, and both online and offline computer data storage were taxable data-processing services.
Are a city impound lot's charges for towing, storage, notification letters, and DMV searches subject to New York sales tax, even though the operator is a government body?
Yes — the entire charge is taxable. Operating an auto pound is operating a place of business that provides storage of motor vehicles, which Tax Law § 1105(c)(6) taxes. The fact that the City of…
Could a Florida corporate parent elect consolidated state income-tax filing with the same subsidiaries included in its federal consolidated return?
Yes. The parent was eligible to elect Florida consolidated filing in 1986 because it was subject to Florida tax, filed a federal consolidated return, used the identical affiliated group, and…
What does the current official PDF of South Carolina's policy-document index through June 30, 1991 contain?
The letter announces an index of Commission policy documents issued from 1987 through June 30, 1991. The current official two-page PDF identifies five document types and five major tax categories,…
Did Texas require out-of-state circuses and other itinerant vendors operating in the state to register and collect sales tax?
Yes. Texas said itinerant vendors, including out-of-state circuses, had to obtain sales-tax permits and collect tax under Rules 3.374 and 3.424.
Which significant South Carolina tax-law changes from the 1991 legislative session did SC Information Letter #91-19 summarize?
The 12-page letter is a multi-tax legislative digest, not one ruling. It summarizes 1991 changes involving Desert Storm relief, corporate and individual income tax, withholding, bingo and admissions…
When was an asphalt producer the consumer of installed material rather than a retailer making taxable sales to a prime contractor?
Consumer status followed a substantive furnish-and-install obligation performed by employees or an independent installer. Circular installation-back arrangements were treated as retail sales.
Did a partnership or its partners owe Florida intangible tax on trademarks, trade names, service marks, and similar licensed assets?
No under this 1991 ruling. Florida exempted franchises, and the Department treated trademarks, trade names, service marks, patents, and similar government-granted rights as so closely related to…
What complete South Carolina tax-relief program applied to Operation Desert Storm personnel under the July 1991 update?
Qualifying personnel stationed in the Persian Gulf or called to active duty received at least 180 days after leaving the Gulf or assigned station to file individual returns and pay additional tax,…
Was a factory-tour charge taxable when each child received a stuffed bear or mouse and sometimes helped stuff the toy?
Yes. California treated the full tour charge as the retail selling price of the toy, regardless of on-site manufacture, limited availability, or the child's participation.
Which California calligraphy charges were taxable, and when did the mailing-address exception apply?
Calligraphy was generally taxable artwork, including signs, camera-ready copy, one-of-a-kind pieces, and lettering on customer property; addressing used for mailing was nontaxable regardless of the…
Who had to collect Texas tax under a software rent-to-own agreement that let the customer stop paying and return the software?
The software developer did. The agreement was an operating lease, so the developer had to collect sales or use tax on each lease payment as rental income was recognized.
Which health-club and physical-fitness-center membership fees were exempt from South Carolina admissions tax beginning July 1, 1991?
Fees were exempt for qualifying fitness centers subject to the Physical Fitness Services Act that offered only listed exercise activities and facilities, for nonprofit organizations' member-use…
What wording did South Carolina identify as the correct version of Regulation 117-77 for consolidated corporate returns?
The approved rule said a corporation doing business entirely in South Carolina could consolidate with a corporation doing multistate business, and two or more multistate corporations could file a…
Did each short advertising audiocassette qualify as a master recording even when many copies were produced?
Yes. California treated each qualifying advertising tape as a master and limited the taxable measure to the blank tape's sale price.
Did a customer's later reorder of a similar mailing-label list destroy one-time-use treatment for either separately licensed transaction?
No. Each agreement restricted use to once, and later licensing did not defeat nontaxability absent evidence that separate licenses were a tax-avoidance artifice.
Were federal ozone-depleting-chemical taxes included in California sales- or use-tax measures?
It depended on the transaction. Manufacturer or importer excise tax recovered in a sale was taxable, while specified self-declared post-sale tax was excluded from use tax.
Was federal ozone-depleting-chemical excise tax included in the California sales- or use-tax measure?
The section 4681 manufacturer or importer tax was included in selling price, but certain self-declared post-sale floor or importer taxes were excluded from purchase price.
Was a paper-mill capacity project entirely new construction, or did replacing and upgrading existing equipment count as remodeling?
It was both. Adding a new electrical room was new construction, but additions, deletions, and replacements to existing equipment were remodeling under Rule 3.357.
Was documentary stamp tax due when an ex-wife quitclaimed an unencumbered marital residence back to her former husband under an amended divorce judgment?
No. The court had declared the earlier deed to the wife null and void, the husband had originally held record title, the wife received other assets instead of the residence, no payment bought her an…
Under this invalidated 1991 ruling, could an advertising agency avoid tax on property it resold to a government client, and was tax already paid to vendors improper?
Historically, the agency could have bought qualifying property tax-free for resale, but tax paid without resale certificates was valid and could be included in reimbursable contract costs. The…
Did petroleum coke left after a fluid-coking process qualify as an exempt waste by-product when sold as fuel to alternative-energy facilities?
Yes. California treated the sand-like coke remaining after removal of crude oil's light ends as a waste by-product. Sales for use instead of conventional fuel at industrial alternative-energy…
Was a 55-percent-pitch, 45-percent-cutter-oil blend exempt waste fuel when exchanged for steam and electricity?
No. The blend was equivalent in value to bunker fuel and was not an exempt waste by-product, even if pitch alone might have qualified. Trading it for exempt steam was a taxable exchange sale…
How did California tax concept design, component engineering, duplicate blueprints, prototypes, repairs, and rework for custom product-development jobs?
Case design and engineering were nontaxable services, but duplicate blueprints were taxable; prototype treatment depended on delivered documentation, use, and whether work was repair or rework.
What documentation did a retailer need to sell tax-free to a property manager acting for the FDIC or RTC?
The retailer could accept an exemption certificate alone. The manager had to retain proof of FDIC/RTC title and its written purchasing authority for audit.
Could a retailer accept an FDIC or RTC property manager's exemption certificate without receiving separate ownership and agency documents?
Yes. The manager kept the ownership and agency records for audit, while the retailer could accept the certificate and issue a refund based on it alone.
Could a retailer accept an exemption certificate from a property manager buying for the FDIC or RTC without receiving the title and agency documents?
Yes. The manager or FDIC/RTC could sign the certificate, while the manager kept title-transfer and agency documents for audit instead of giving them to the retailer.
What supported good-faith acceptance of a resale certificate from a federal contractor not normally reselling the equipment?
A signed statement tying pre-use title passage to a specified federal contract supported good faith, though it was not a required certificate element.
Did a 1991 California memorandum allow resale treatment when an inspection company used x-ray film before transferring it?
No. The company used the film as a tool to test and inspect customers' parts before any transfer, so its purchase was retail and the supplier's refund claim should be denied. A customer's later…
Do resale transactions count with retail transactions when deciding whether a sales series requires a California seller's permit?
Yes. The Legal Division said resales are sales, wholesalers can be sellers, and resale and retail transactions count together in the number, scope, and character test.
Could required customer-data analysis be excluded or allocated from a bundled sale of software, guides, updates, and reports?
No. Even if the analysis qualified as a service, customers had to buy it with taxable software and updates, so the entire contract charge was taxable.
How did Texas distinguish a true vehicle lease with a purchase option from a conditional sale?
A standard lease with an optional purchase was treated as a lease followed by a taxable purchase when the option was exercised. A must-purchase clause or transfer below fair market value made the…
Did a cable company have to refund Texas sales tax when a customer canceled before a prepaid service period ended?
No. The company was not required to refund the tax, but if it chose to do so it also had to refund the unused service fee and follow Rule 3.325.
Could an FDIC or RTC property manager issue an exemption certificate without giving the retailer its title and agency records?
Yes. If the manager retained those records for audit, it could issue the certificate; a retailer accepting a proper certificate in good faith was relieved of tax liability.
Can a fireworks company buy pyrotechnic materials tax-free for resale when it uses them to put on a fireworks display for a customer?
No — the materials aren't bought for resale, because the company is selling a service, not the fireworks. Under its standard contract, Bay Fireworks furnishes a 'fireworks exhibition' — providing…
What tire and short-term vehicle-rental tax changes took effect in Kansas on July 1, 1991?
Effective July 1, 1991, House Bill 2407 broadened the $0.50 tire excise tax to more highway vehicles and to tires mounted on new vehicles at first retail sale. Senate Bill 14 imposed a 3.5% excise…
Were charges taxable when a customer disassembled new lacquered brass hardware and hired a finisher to remove lacquer and restore the polish?
Yes. Because the customer-furnished hardware was new, removing its lacquer and restoring the polished finish were taxable fabrication and processing.
When were sales and delivery of dirt, sand, gravel, equipment, and construction services taxable in Texas?
Unprocessed dirt, sand, or gravel and their delivery were not taxable. Processed materials, equipment rentals, and taxable services were taxed with related delivery charges.
Were fees taxable for knitting instruction and for blocking sweater parts made from yarn bought from the shop or elsewhere?
Classroom instruction was nontaxable, but sweater-part blocking was taxable fabrication regardless of where the customer bought the yarn.
How these rulings are useful
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