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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Is alarm monitoring service taxable in Kansas, and is installing the equipment taxed differently for homes and businesses?
Monitoring service itself is not taxable in Kansas — a Missouri company charging Kansas residents for monitoring does not charge Kansas sales tax on it, because the Kansas sales tax act does not tax m…
Is an external defibrillator exempt from Kansas sales tax when sold under a physician's written order?
No. A physician's written order did not make an external defibrillator exempt under K.S.A. 79-3606(r). The device did not meet the statute's definition or use requirements for either mobility-enhancin…
Are a school's sales of cookies, crafts, and plants exempt from Kansas sales tax?
It depends on who the sale is for. K.S.A. 79-3606(yy) exempts sales of tangible personal property made by or on behalf of a parent-teacher association or organization (PTA/PTO). So if the school is se…
Where is Kansas sales tax collected on repair services, and when is an out-of-state delivery exempt?
Kansas repair shops collect state and local sales tax based on where the repaired property is delivered to the customer in Kansas — usually at the shop or at the customer's home or place of business. …
Is an HVAC contractor's markup on materials subject to Kansas sales tax?
It depends on whether the underlying service is taxable. An HVAC contractor correctly pays Kansas sales or compensating tax on its material purchases. When the contractor performs a taxable service, i…
We're a joint venture between the U.S. Army and a private housing manager, formed under the federal Military Housing Privatization Initiative to rebuild military housing at Fort Hamilton. We'll issue bonds secured by a leasehold mortgage that the Army will execute and record as co-mortgagor. Is that mortgage exempt from New York's mortgage recording tax because the Army is a party?
Exempt. Fort Hamilton Housing LLC is a joint venture between the U.S. Army and a private military-housing manager (GMH), formed under the federal Military Housing Privatization Initiative (10 U.S.C. s…
Can cash from selling a vehicle to a private buyer count as a New Mexico trade-in allowance when the seller uses it the same day to buy a new vehicle from a dealer?
No. Barry Schoeneman sold his Ford Explorer to a private buyer for $18,500 and separately bought a Toyota Sequoia from a dealer. Applying the cash proceeds to the new purchase did not make the Explore…
A hotel guest reserved a room by phone stating he'd stay at least a month, but paid a weekly rate instead of a monthly rate -- does paying weekly (rather than monthly) disqualify him from the 30-day 'permanent resident' hotel-tax exemption, as his hotel claimed?
No -- the payment interval (daily, weekly, monthly, or any combination) has NO effect on the permanent-resident hotel-tax exemption. In this consumer dispute, a guest called ahead and reserved a room …
If a Connecticut resident occasionally works in New York, then later takes a New York City job and buys a Manhattan apartment, when does he have to file a New York nonresident or resident personal income tax return, and how does he allocate his wages?
In each year described, the individual - a Connecticut domiciliary who never met both parts of New York's statutory residency test (a permanent place of abode maintained substantially all year plus mo…
Can a leasing LLC buy an aircraft tax-free and pass the commercial-aircraft sales tax exemption through to the affiliated and unrelated companies that lease and operate it?
Yes, as long as the corporate structure is respected and the lessees actually meet the commercial-aircraft test. A holding company whose only activity is leasing out an aircraft can buy it tax-free as…
Does a retailer owe sales tax when it resells USPS postage stamps and pre-stamped Priority Mail envelopes at or below face value?
No. Buying a postage stamp for its intended purpose — prepaying for mail delivery — is really just buying an intangible right to USPS delivery service, not buying tangible personal property, so it's u…
Can a fruit processor rely on original TAA 04A-031's conclusion that ethylene gas was not exempt packaging material?
No. The April 2004 ruling originally denied the packaging exemption because ethylene gas left no residue, did not become part of the fruit, and did not accompany it to the customer. But the official P…
Are glucose tablets, lancets, and alcohol swabs subject to Kansas sales tax?
The ruling's text is internally inconsistent, so read it with care. It opens by stating that the answer is 'yes' — that selling glucose tablets, lancets, and alcohol swabs is subject to Kansas sales t…
Are delivery charges included in the base for calculating Kansas sales or compensating tax?
Yes. Delivery charges are part of the taxable base for Kansas sales and compensating (use) tax. Under K.S.A. 79-3602(i), 'delivery charges' are the seller's charges for preparing and delivering proper…
Is installing floor coverings in a new home taxable, and does the installer owe tax on its carpet and materials?
The labor is exempt; the materials are taxable. Installing floor coverings in connection with the original construction of a building — here, a new residence built for a homebuilder — is a labor servi…
Is the service of moving dirt for a developer between the developer's properties subject to Kansas sales tax?
No. Moving dirt for a developer from one of his properties to another is not a taxable service in Kansas. Kansas taxes services only when they are specifically listed in the sales tax act, and dirt-mo…
Are sales of discount coupon books redeemable at third-party merchants subject to Kansas sales tax?
Yes. Selling discount coupon books — where the coupons are redeemable at various third-party merchants — is a taxable retail sale. Under K.S.A. 79-3603(a), sales tax applies to the gross receipts from…
Which Louisiana hotel no-show, forfeited-deposit, early-checkout, and group-cancellation charges were taxable as furnishing sleeping rooms?
Guaranteed-room no-show charges were taxable because the room was held for the guest. Early-checkout and true cancellation damages were generally not taxable when the hotel could rent the room to some…
Could a Florida city buy materials for a public-library construction project tax-exempt under its proposed direct-purchase procedures?
Yes, if the controlling documents and actual purchases made the city the purchaser in substance and form. The city had to issue purchase orders with its exemption number, be invoiced and pay vendors d…
Which machines and related items qualified for South Carolina's manufacturing sales-tax exemption under RR 04-7?
A machine qualified when it was integral and necessary to making tangible personal property for sale and was substantially used in that process. Buildings, storage, administration, and general mainten…
When a related corporation merges into a new Empire Zone corporation, can the survivor count the predecessor's employees for the Empire Zone wage tax credit?
Yes, with conditions. When a related corporation merges into a newly formed Empire Zone corporation, the merged corporation's rights and obligations as to its employees transfer to the survivor and do…
Does Utah's Streamlined Sales Tax legislation change whether a leasing company collects sales tax upfront or on each monthly lease payment?
It depends on the purchase option. A lease letting the lessee buy the equipment at the end for a nominal price (10% or less of the lease amount under old Rule 32, or the greater of $100/1% of total pa…
Does diesel fuel burned while an armored courier vehicle idles during a delivery qualify for Utah's off-highway special fuel tax refund?
It depends on exactly where the vehicle idles. Idling in a bank's public parking lot or at a public curb is still "on a highway" for special fuel tax purposes, so that fuel doesn't qualify for the off…
Were mandatory assessments paid by resident homeowners for association-owned common areas subject to Florida admissions tax?
No. The resident owners' assessments were mandatory conditions of home ownership, enforceable by a lien, and paid pro rata to maintain association-owned common areas. They met Rule 12A-1.005(4)(d)3. a…
Which parts of a new Florida slag-manufacturing plant—and which fuel, electricity, and repair purchases—qualified for sales-tax exemptions?
Mixed. Production-integral systems, specialized foundations, movable production equipment, monitoring and laboratory equipment qualified; ordinary buildings, furniture, paving, a fuel tank, and most u…
Under Florida's former commercial-rent tax, were vending commissions paid between a location owner, national vending company, and local operator taxable real-property rent?
Yes for the 2004 ruling period. The national vending company licensed location space from its clients and sublicensed it to local machine operators, so client payments and operator commissions were ta…
Can a car dealership get a refund of the sales tax it paid on gasoline used to fill a new vehicle's tank before delivery to the customer?
Only if the dealer can show it's contractually or documentarily committed to providing a full tank as part of the sale — a manufacturer's window sticker listing a full tank in the MSRP, or the dealer'…
Must a vendor selling meals on a Kansas military base (Fort Leavenworth) charge Kansas sales tax?
Yes. A vendor selling meals at Fort Leavenworth must charge Kansas state and any applicable local sales tax. Kansas retailers must collect sales tax on retail sales made on military reservations in th…
Can a Texas lab source outsourced service revenue by a cost ratio, or must service receipts be sourced by the fair value of work performed in Texas?
Service receipts must be sourced by the fair value of the services performed in Texas, and the Comptroller declined to approve a cost-ratio method. A Texas corporation that analyzed blood samples - pe…
Were printed materials transferred between related companies taxable when payment occurred only through internal accounting entries?
Yes when the printed materials were delivered in South Carolina. The companies' accounting entries established consideration even without a paper invoice or cash transfer. Seller-required delivery out…
Does a resort owe hotel occupancy tax on its separate self-contained housekeeping units, given that it already collects tax on its adjoining motel rooms?
It depends entirely on rental length and services provided, not on what the resort does with its motel rooms next door. Weekly (or longer) rentals of the resort's self-contained housekeeping units — w…
Is a New York-organized corporation eligible for franchise tax exemptions, and what must it do to claim Empire Zone wage credits and become a QEZE?
A New York-organized corporation (SLIC) cannot use the section 209.2 exemptions, which apply only to foreign corporations, so it is subject to Article 9-A. The Empire Zone wage tax credit (section 210…
Is an out-of-state life insurer that invests in New York mortgages through a partnership and receives orphan premiums subject to Article 33 instead of Article 9-A, and what is its tax?
It is subject to Article 33, not Article 9-A, and its computed tax is zero but it must still file. The insurer is doing business in New York through a partnership that invests in New York-secured mort…
Is an out-of-state life insurer that invests in New York mortgages through a partnership and receives orphan premiums subject to Article 33 instead of Article 9-A, and what is its tax?
It is subject to Article 33, not Article 9-A, and its computed tax is zero but it must still file. The insurer is doing business in New York through a partnership that invests in New York-secured mort…
Is an out-of-state life insurer that invests in New York mortgages through a partnership and receives orphan premiums subject to Article 33 instead of Article 9-A, and what is its tax?
It is subject to Article 33, not Article 9-A, and its computed tax is zero but it must still file. The insurer is doing business in New York through a partnership that invests in New York-secured mort…
Is an out-of-state life insurer that invests in New York mortgages through a partnership and receives orphan premiums subject to Article 33 instead of Article 9-A, and what is its tax?
It is subject to Article 33, not Article 9-A, and its computed tax is zero but it must still file. The insurer is doing business in New York through a partnership that invests in New York-secured mort…
For the brownfield redevelopment tax credit, do new buildings built on a remediated site count toward the tangible property credit, can LLC partners claim their share on their personal income tax returns, and do cleanup costs paid before the credit's 2005 effective date still qualify?
Yes to all three questions, as long as the underlying conditions are met. New buildings and their structural components built on a remediated brownfield site can qualify as tangible property under Tax…
Was an affiliated real-property distribution and leaseback a taxable commercial lease or a nontaxable financing arrangement and mortgage?
It was a financing arrangement, not a taxable lease. The special-purpose titleholder existed solely for the lender's structure, rent matched debt service, the operating company bore ownership risks, a…
Did a monthly Florida magazine made up primarily of advertising qualify for the sales-tax exemption for free-circulation shopper publications?
Yes for copies distributed free. The monthly magazine was regularly published, mostly distributed without charge by mail and other circulation methods, and 59% advertising. Based on the submitted samp…
How did South Carolina Revenue Ruling 04-6 apply the deed recording fee to common real-estate transfers?
This historical ruling applied a $1.85 fee per $500 or fraction of $500 of realty value and answered 59 transaction questions. RR 15-3 expressly superseded it, and RR 24-1 now incorporates the January…
Does a South Carolina medical professional charge sales tax for copies of a patient's medical records?
Usually not when the medical professional provides the copies to a patient as part of medical services. Copies sold to a third party were exempt only when the transaction qualified as a casual or isol…
Was an amended Louisiana individual income-tax return a “final return” for calculating refund interest?
No. An amended return was a claim for refund, not the tax year's final return. Refund interest on an amount claimed by amended return was computed under La. R.S. 47:1624 rather than La. R.S. 47:115.
Could a Florida county buy materials for an airport public-address and emergency-annunciation project tax-exempt under its direct-purchase procedures?
Yes. The county could buy project materials tax-exempt if it issued purchase orders with its exemption number, received vendor invoices, paid vendors directly, took title and liability at job-site del…
Could a corporation stop filing Florida consolidated corporate income-tax returns after an acquisition ended its former affiliated group?
Yes. The acquisition ended the taxpayer's former affiliated group and placed it in a new federal consolidated group that was not eligible to file the same Florida consolidated return. The Department f…
Were a breeder's retail sales of chinchillas and exotic birds kept as pets exempt as direct farm sales of livestock or poultry?
No. Chinchillas sold as pets were rodents, not statutory livestock, and exotic birds sold as pets were not poultry raised for eggs or meat. Their breeders therefore were not farmers producing exempt l…
Which amounts could a New Mexico craftsman remove from gross receipts tax when his federal Schedule C mixed business receipts with stock-sale proceeds and he lacked records for other claimed deductions?
The Department had already removed $6,978.89 of out-of-state sales and was bound by its hearing stipulation to remove tax, penalty, and interest on $11,832 of stock gain. Terry Wolff received no furth…
Was a prepackaged software program modified to a customer's unique specifications exempt as customized software?
Yes, if the modification and license were one transaction. The vendor analyzed the customer's unique processing needs, developed and repeatedly tested a modified version, and charged once for the cust…
Was a separately stated newspaper carrier-delivery charge exempt from Florida sales tax when subscribers could avoid it by choosing pickup or mail?
No tax applied to the carrier-delivery charge if subscribers were told at the initial subscription or renewal about carrier and mail charges, were told they could avoid the charge by pickup or mail, a…
Did a golf-tournament sponsor owe sales tax on goods and services included in an amateur pro-am package when the participant fee itself was exempt?
Yes. Although the amateur participation fee was exempt because spectators paid a taxable admission, the sponsor was the end consumer of the food, drinks, gifts, favors, greens fees, preview outing, an…
Must a not-for-profit wellness facility collect Kansas sales tax on membership dues if its property-tax exemption comes from K.S.A. 79-201a?
Yes. The not-for-profit must keep collecting Kansas sales tax on its membership wellness dues. K.S.A. 79-3603(n) taxes dues that entitle members to use recreation or entertainment facilities, and it e…
Could a practitioner charge a contingent fee for South Carolina tax-return or refund-claim work?
Not for preparing or advising on an original return. The ruling allowed a contingent fee for an amended return or refund claim only when the practitioner reasonably expected substantive review by the …
Is a motor vehicle sold and delivered in Kansas to a bona fide resident of another state subject to Kansas sales tax?
No, if the conditions are met. A motor vehicle sold and delivered in Kansas to a bona fide resident of another state is exempt from Kansas sales tax under K.S.A. 79-3606(k), provided the vehicle will …
Could a greatly expanded corporate group stop filing Florida consolidated income-tax returns because its business circumstances had changed since the election?
Yes. The group had changed substantially since its original election through capital raising, public ownership, new business lines, broader geography, and growth in subsidiaries, assets, employees, an…
Is an automated external defibrillator (AED) or its training system exempt from Utah sales tax when sold with a prescription?
No, both the defibrillator and its training system are taxable, regardless of a prescription. To qualify for Utah's home medical equipment exemption (pre-July 1, 2004, Utah Code § 59-12-102(12)) or it…
How did Kansas tax telephone, sewer, refuse, electricity, water, natural gas, and other utility services for homes and businesses?
Telephone services were generally subject to state and local sales tax, while sewer and refuse services were not taxable. Electricity, water, natural gas, and other fuel for residential noncommercial …
Are water and natural gas used to make steam for required sanitation at slaughterhouses and food-processing plants exempt as consumed in production?
No. Water and gas used to create steam for cleaning and sanitizing slaughterhouse, meat-packing, or food-processing equipment were taxable, even when USDA rules required the sanitation every 16 produc…
Can a Texas dealer obtain title to a vehicle tax-free for resale, and when does registration or a manufacturer's certificate trigger tax?
A licensed dealer could title a vehicle tax-free for resale only while holding it exclusively for resale and leaving it unregistered. Registration created a presumption of taxable use. New MCO vehicle…
How did a Louisiana individual obtain relief when using IRC § 1341's federal tax-credit method for repaying more than $3,000 of previously reported income?
The taxpayer could deduct the repayment on Louisiana Schedule E in the same year the federal § 1341 credit was taken. The federal deduction method needed no special Louisiana adjustment.
Does an online travel-booking intermediary have to collect New York hotel occupancy tax on payments consumers make through its website?
No — not under the facts described here. The hotel operator, not the online booking company, is the one required to collect and remit New York hotel occupancy tax, because the booking company never op…
How did Louisiana's 2004 ruling tax software maintenance agreements containing consultation, bug fixes, upgrades, updates, enhancements, canned software, or custom software?
Consultation-only support was not taxable, while updates, modifications, and enhancements were treated as software sales. Bundles were taxed at the highest rate unless lower-tax items were separately …
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