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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I publish school yearbooks under contract with schools, clubs, and activity funds in New York -- who has to collect sales tax on the yearbooks, me or my school customer?
It depends entirely on who Petitioner's actual contract customer is. If the customer is genuinely a public school district itself (invoice names the district, contract signed by someone authorized to …
I sell customized emergency-preparedness plans, training videos, brochures, and live drills to schools and businesses -- which parts of my invoice owe New York sales tax?
It depends on what's billed separately. New York taxes AK Productions' physical products -- training videos on tape or disc, brochures, evacuation maps, floor plan diagrams, and emergency signage -- a…
Did a dissolving partnership owe documentary stamp tax when it distributed unencumbered Florida properties to its partners in their ownership proportions?
No. The partnership's two townhouses had no mortgages or other encumbrances, and the dissolution agreement distributed them to the partners in proportion to their partnership interests. Florida conclu…
Are retail sales of game birds subject to Nebraska sales tax?
No -- as of October 1, 2008. Revenue Ruling 01-08-4 explains that LB 916 amended Neb. Rev. Stat. § 77-2704.46 so that retail sales of game birds subject to permit and regulation by the Nebraska Game a…
Did Kansas treat the revised Texas franchise or margins tax as an income tax for addback and credit-for-taxes-paid purposes?
Yes. The Department concluded that the revised Texas franchise tax was based on income and therefore was in the nature of an income tax. It was an addback modification for Kansas corporate income-tax …
Did F.O.B.-shipping-point terms and buyer-paid freight prevent Florida's export exemption when goods left by common carrier?
No. F.O.B.-shipping-point terms and the buyer's payment of freight did not defeat the export exemption. Supplies for out-of-state use were exempt when the buyer directed the Florida seller to deliver …
What is South Carolina's tax interest rate for the period October 1, 2008 through December 31, 2008 (per SC IL #08-18)?
6%. SC Information Letter #08-18 sets South Carolina's interest rate on tax underpayments and overpayments at 6% for the period October 1, 2008 through December 31, 2008. Interest is compounded daily,…
What were the significant South Carolina tax law changes enacted in the 2008 legislative session (per SC IL #08-17)?
SC Information Letter #08-17 is the Department's summary of the significant tax and regulatory law changes enacted in South Carolina's 2008 legislative session, organized into four parts: (1) income t…
I sell access to software that produces scannable and nonscannable tax and business forms -- is that a taxable sale of software, and is the computer hardware I use to build it exempt?
Yes, it's a taxable sale of software. STF Services Corp.'s SuperForm products (installed from a CD or downloaded from the Internet) let customers fill in and file scannable/nonscannable federal, state…
Does Utah sales tax apply to the full purchase price of a prepaid telephone calling card sold in Utah, even if the card only allows interstate calls?
Yes. Utah taxes the full purchase price of a prepaid telephone calling card under Utah Code Ann. § 59-12-103(1)(m), regardless of whether its minutes are interstate-only, intrastate-only, or a mix — t…
Could an oil-well customer rely on a 1970 Kansas bulletin to stop paying sales tax on well-site inspection and labor services?
No. The 1970 bulletin interpreted a law later held unconstitutional and replaced by the legislature, so K.A.R. 92-19-58 made the old guidance invalid. Current Revenue Ruling 19-2002-2 governed instead…
I run a portable-toilet rental and servicing business — do I owe sales tax on the toilets and supplies I buy to run it, or on the insurance I charge customers for the toilets?
Split result. A portable-toilet servicing company owes New York sales and use tax on its purchases of the toilets themselves (and the parts/paint used to build and maintain them), because providing to…
In Colorado, are dietary supplements, TENS units, and 'pads' subject to sales tax, or do they qualify as exempt food or exempt therapeutic devices?
Supplements are generally taxable—dietary supplements like vitamins and minerals are tangible personal property and don't qualify as exempt food (Regulation (39)-26-102.4.5(b)(8)/(9)) or, generally, a…
In Colorado, are restocking fees, passed-through vendor travel/expense charges, on-site training, and equipment rentals subject to sales or use tax?
Four answers. (1) Restocking fees: if a retailer charges one, it gets NO sales-tax refund on the return, because §39-26-102(5) allows the credit only when the FULL purchase price is refunded—a partial…
I electronically process physicians' medical insurance claims and arrange printing and mailing of patient invoices for a fee -- is that a taxable New York information service?
Not taxable. New York held that a health-IT vendor's charges to physicians for electronically submitting patient billing data to insurance companies to file claims, facilitating insurer payments, and …
I pay an annual individual affiliate fee to the Transportation Research Board for library access, meeting discounts, and publications -- does New York charge sales tax on that fee?
Not taxable. Annual individual affiliate fees paid to the Transportation Research Board -- a research-focused nonprofit, not a social or athletic club -- are not subject to New York sales tax, because…
My company waterproofs leaking basement wall cracks by injecting a clay-based sealant through drilled holes and covering the crack with a vinyl moisture barrier panel -- is that an exempt capital improvement or a taxable repair to real property under New York sales tax?
Taxable repair, not a capital improvement. A basement waterproofing contractor's method of injecting a clay-based sealant through drilled wall holes and covering the crack with a vinyl moisture barrie…
Could a retailer combine enterprise-zone locations on one county sales-tax return to use a jobs credit across the locations?
Yes, if every location included under the county control number collectively met the enterprise-zone credit requirements. The retailer had to combine all of its places of business in that county, and …
Are optional, separately stated clothing alterations (hemming, shortening, taking in) ordered at the time you buy the garment subject to Colorado sales tax?
No. Optional, separately stated alteration services—shortening, hemming, taking in—that a customer orders from the retailer at the time of buying the clothing are NOT subject to Colorado sales or use …
Was Louisiana sales and use tax limited to the $360 discounted price of wireless internet equipment that cost the provider $600?
No. The ruling treated the mandatory service contract as partly recovering the equipment discount, so sales and use tax applied to the full $600: $360 at sale and $240 as provider use tax.
Would Florida follow a corporation's federal treatment of shareholder advances as compensation, and did the ruling decide tax on its use of the shareholder's vehicle?
Florida would follow the corporation's federal treatment of net personal-expense and travel advances to its owner as compensation unless a contrary federal determination or an audit-supported exceptio…
Could a Florida city buy materials tax-exempt under its proposed direct-purchase procedure for a real-property construction project?
Yes. The reviewed procedure made the city the direct purchaser: it issued purchase orders with its exemption certificate, received vendor invoices, paid vendors directly, took title upon job-site deli…
I'm an out-of-state jewelry retailer that sells through satellite and cable TV home-shopping arrangements to New York viewers -- do those broadcast and airtime-purchase relationships give me nexus, requiring me to register and collect New York sales tax?
No nexus from the TV distribution deals alone, but the Department stopped short of a final answer. Gems TV USA Limited, a Delaware corporation with no New York locations, employees, warehouse, or plac…
What sales and use tax exemptions were available to qualifying motion picture companies under South Carolina's 2008 guidance?
A certified production expecting at least $250,000 of South Carolina spending within 12 months could exempt qualifying in-state production expenditures from state and Department-administered local sal…
Does an out-of-state bank create Utah nexus by using independent mortgage brokers and relationship managers to originate Utah home loans, and does that nexus reach its subsidiary and LLC too?
Yes to nexus, and yes it extends further. An out-of-state bank that uses independent relationship managers and mortgage brokers to originate loans secured by Utah real estate has Utah corporate franch…
Cadman Towers, a Mitchell-Lama not-for-profit housing cooperative with 421 apartments and 16,000 shares, plans to voluntarily dissolve and reconstitute as a new for-profit BCL corporation (Cadman Towers Owners) with 101,038 shares, letting shareholders finally sell at market value instead of at restricted Mitchell-Lama prices. Each old share converts to a different number of new shares (to satisfy an IRS 'reasonable relationship' test), and old apartment leases become proprietary leases tied to the new shares. Does this conversion trigger New York's Real Estate Transfer Tax, both on the building itself and on the new shares issued to shareholders?
Yes, RETT applies at two separate points, with a partial credit to reduce the overlap. Cadman Towers, Inc., a 421-unit, 16,000-share not-for-profit residential cooperative organized under the Private …
I manufacture and permanently install baggage-handling systems at airport terminals leased by airlines from government-owned airports -- do I owe New York sales or use tax on the materials, labor, and installation charges?
Usually exempt as a capital improvement, but only with the right paperwork. G&T Conveyor's permanently bolted, custom-built baggage-handling systems installed in airport terminals qualify as capital i…
Could a Florida consolidated group use an alternative apportionment method because different state filing methods taxed more than 100% of federal income?
No. Showing that the affiliated companies' combined state tax bases exceeded 100% of consolidated federal income did not prove that Florida's elected consolidated formula was grossly distortive. The m…
Could an acquired Florida consolidated group discontinue its old consolidated-return election after its membership and parent changed?
Yes, subject to stated conditions. The acquisition, sale of several subsidiaries, elimination of the prior group configuration, and inclusion of the remaining companies in the purchaser's new federal …
Would Louisiana respect a multistate professional partnership's agreement that sourced income into state buckets and first allocated each bucket to equity partners working in that state?
Yes. The agreement was respected because its principal purpose was geographic attribution of income, not tax avoidance. Nonresident partners reported their Louisiana-source shares under the agreement,…
Can a business exclude, from its taxable receipt, credits it gets for trading in old computer hardware and for unused prepaid maintenance services when it buys new hardware from the same vendor?
Only the hardware trade-in qualifies. Because the seller resold (rented back) the old hardware to the buyer for an extra fee before taking final possession, the trade-in credit for that hardware is ex…
How is Texas motor vehicle sales tax calculated when a mechanic or storage facility takes or auctions a vehicle under a possessory lien?
Forgiving the unpaid mechanic or storage debt in exchange for the vehicle was taxable consideration. If the lienholder took title, tax generally used the noticed charges; a separate auction buyer paid…
Does a newly formed C corporation that bought New York manufacturing assets qualify as a 'new business' under section 210.12(j), making its investment tax credit refundable?
Yes. A new C corporation that bought New York manufacturing assets is a 'new business' eligible to refund its investment tax credit, because it is not over-50% owned by an Article 9-A/32/33 taxpayer (…
Is installing point-of-sale cash register systems, related hardware, and power/cabling equipment in retail stores subject to New York sales tax, and does testing the pre-loaded software count too?
Mostly yes. Installing point-of-sale cash registers and computer hardware peripherals is a taxable installation service, and the hardware itself is taxable when sold. Installing UPS power-supply equip…
Is a construction company's use of a leased crane and operator a taxable equipment rental or a nontaxable purchase of a construction service?
It's a service, not a taxable rental — as long as the crane provider keeps dominion and control. Because the crane provider's own employees set up, operate, and tear down the crane, and the provider (…
Is a general contractor's purchase of construction debris removal and dumpster services on a capital-improvement project subject to New York sales tax?
It depends on the service. Construction debris and cleanup removal purchased by a contractor in conjunction with a capital-improvement project is exempt from sales tax (with the right paperwork), but …
Are charges for millwork shop drawing services for custom woodwork on a construction project subject to New York sales tax?
Yes. Millwork shop drawings and the on-site project manager's coordination work are taxable 'interior decorating and design services' under Tax Law § 1105(c)(7), since the company preparing them isn't…
Does a company that bolts advertising display/directory units to mall floors owe sales tax on installing them, on selling the advertising space on them, or does it even need to register as a New York sales tax vendor?
The floor-bolted display units are taxable installations of tangible personal property (not exempt capital improvements) since they can be unbolted without material damage, but the company's separate …
What does South Carolina Regulation 117-337 do for the unprepared-food sales tax exemption (per SC IL #08-16)?
SC Information Letter #08-16 announces that on June 20, 2008 the General Assembly approved SC Regulation 117-337 (the Food Tax Regulation), which became official upon publication in the State Register…
How were horse trailers, stock trailers, and trailers with camper packages taxed under South Carolina's 2008 guidance?
Horse trailers received the historical 5% rate capped at $300, while stock trailers generally paid 6% plus applicable local tax. A horse or stock trailer primarily designed as temporary living quarter…
When did withdrawing wholesale inventory for business use, employee use, samples, or giveaways trigger South Carolina sales or use tax?
A South Carolina withdrawal, use, or consumption of wholesale inventory was itself a taxable retail sale measured by fair market value. A withdrawal outside the state followed by South Carolina use tr…
When did firefighting equipment share a fire truck's historical South Carolina $300 maximum tax under the 2008 ruling?
Equipment such as ladders, hoses, extinguishers, oxygen tanks, and axes shared the fire truck's historical 5%-or-$300 treatment when supplied with the vehicle and included in its purchase price. Prote…
Was an optional vehicle service contract included in automobile lease payments exempt from South Carolina sales and use tax under this PLR?
Yes, on the stated facts. The optional motor vehicle service contract was exempt whether its price was separately stated in the lease or allocated at a reasonable retail fair market value. The lease i…
How did Florida calculate sales tax for off-street parking meters that accepted nickel time units and allowed multiple coin insertions?
For the meters described, Florida treated 50% of gross coin receipts as taxable and applied the taxpayer's combined state and county rate to that amount. The meters sold five minutes for a nickel, ten…
A new commercial hunting lodge will charge guests for overnight rooms, meals, guided hunts, and gear rental/sales. Which parts are hotel occupancy tax, which are sales tax, and which aren't taxed at all?
A four-way split depending on what's charged and how it's billed. LODGING is subject to state HOTEL OCCUPANCY TAX (6%) under Tax Code Sec. 156.001's 'hotel' definition. If lodging, meals, and hunts/gu…
How can taxpayers find South Carolina advisory opinions by subject (per SC IL #08-15)?
Use the index attached to SC Information Letter #08-15 to find South Carolina advisory opinions. It indexes the advisory opinions issued by the Department from 1987 to June 30, 2008, and it explains t…
How can taxpayers check whether an older South Carolina advisory opinion was modified or superseded (per SC IL #08-14)?
Use the citator attached to SC Information Letter #08-14. It helps you determine what effect newer South Carolina advisory opinions have on previously published ones — whether an opinion was modified,…
Did a security agreement and related advance documents owe Florida documentary stamp or nonrecurring intangible tax?
Not as unrecorded written obligations on the documents reviewed. Neither the individual documents nor the expressly incorporated agreement package contained both a borrower-signed unconditional promis…
Which Texas tax applies to a park-model trailer: motor vehicle tax, manufactured-housing tax, or ordinary sales and use tax?
STAR says the rule changed on November 14, 2013: park models became subject to Chapter 152 motor vehicle tax and left Chapter 151 sales tax. Historically, the 2008 letter treated qualifying industrial…
Did a nonprofit's direct-purchase agreement allow it to buy construction materials tax-exempt for its new facility?
Yes. The contract amendment made the exempt organization the direct purchaser: it issued purchase orders, received vendor invoices, paid suppliers directly, accepted title at the job site, and bore ri…
What does Louisiana Revenue Ruling 08-010 conclude about the sales tax treatment of electronic bingo dabber devices?
The electronic dabbers were tangible personal property. The distributor's per-device charge to the charity was lease consideration, and the charity's provision of each device to a player was a taxable…
What does Louisiana Revenue Ruling 08-009 conclude about licensing fees for software used in electronic video bingo devices?
Both license layers were taxable leases. The manufacturer's prewritten video-bingo software was canned tangible personal property, title stayed with the manufacturer, and continued use depended on dai…
Were Washburn University retirement-plan benefits exempt from Kansas income tax, and what happened after a rollover to another retirement account?
Direct Washburn University retirement-plan benefits received on or after January 1, 2008 qualified for a subtraction from federal adjusted gross income and were not subject to Kansas income tax, wheth…
Under the historical 2008 guidance, when did South Carolina collect casual excise tax or use tax on vehicles, boats, motors, airplanes, and trailers?
Casual excise tax generally applied when South Carolina issued title or ownership proof after a non-retailer sale of a vehicle, motorcycle, boat, motor, or airplane. Use tax generally applied to prope…
How were boats, boat motors, and boat trailers taxed when sold separately or together under South Carolina's 2008 ruling?
A boat, including a qualifying permanently attached motor, received the historical 5% rate capped at $300. A motor or ordinary boat trailer sold separately was taxed at 6%, and a trailer bundled with …
Is South Carolina's sales tax rebate for alternative fuel vehicles and conversion equipment still available (per SC IL #08-13)?
No — it was eliminated. SC Information Letter #08-13 announces that the sales tax rebate for purchasers and lessees of certain alternative fuel and fuel-efficient vehicles, and for purchasers of certa…
What did the Chesterfield County Circuit Court decide in Ross L. McDonald's case against the Virginia Department of Taxation?
The court entered judgment for the Virginia Department of Taxation on every allegation. It granted a motion to strike part of Ross McDonald's complaint after his proof and then found, after all eviden…
When is South Carolina's 2008 sales tax holiday and what is exempt (per SC IL #08-11)?
August 1-3, 2008. SC Information Letter #08-11 sets South Carolina's 2008 sales tax holiday for the weekend beginning Friday, August 1, 2008 at 12:01 a.m. and ending Sunday, August 3, 2008 at midnight…
May an implement dealer sell a lawnmower tax-free to a dairy farmer who says it will be used only around the farm?
No. The agricultural machinery exemption required exclusive use in agriculture to produce products for resale. Mowing weeds or grass around a farm home, barn, storage building, or other area for fire …
Which Internet-service-provider charges were exempt or taxable in Kansas under the extended Internet Tax Freedom Act moratorium?
Kansas treated Internet access and telecommunications used to provide it, including qualifying DSL, as exempt under the federal moratorium. Home-page, email, messaging, video-clip, and personal-storag…
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