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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Are welding gases, cylinders, regulators, hoses, and related supplies exempt from New York sales tax when sold to farmers who use them to repair and maintain farm production equipment?
Mostly yes, but item-by-item. Welding gases, gas cylinders (sold, rented, or leased), and welding accessories (regulators, gauges, hoses, torches, tips, flashback arresters) are exempt from New York s…
Are furnished apartments leased to business travelers for a month or longer, with only occasional weekly maid service and no front desk, subject to New York's hotel occupancy tax?
No. A company that leases furnished residential apartments to business travelers under a genuine landlord/tenant agreement — minimum one-month terms, security deposits, formal eviction procedures, a m…
Does a nonprofit educational organization have to collect sales tax on course manuals, CD-ROMs, and merchandise sold by mail, over the Internet, and by order-taking at traveling seminars, versus on-site sales at its occasional New York conventions?
No collection required for mail-order sales, Internet CD-ROM sales, or orders taken (without merchandise displayed) at traveling seminars — none of these count as sales by a 'shop or store,' the only …
Are convertible bonds and credit linked notes held by an international banking facility treated as loans for Article 32 IBF purposes?
Yes, as loans -- but eligibility of the income is left open. Both convertible bonds and credit linked notes (CLNs) invested in by an international banking facility (IBF) are treated as loans under sec…
Was a utility's sale-leaseback of gas meters a financed purchase or a taxable operating lease?
It was a taxable operating lease. The lessor retained federal tax depreciation and the purchase options were not nominal, so the arrangement did not qualify as a conditional-sale lease. Each rental pa…
Were separate monthly charges for a DSL package that consumers could use only for Internet access subject to Louisiana sales and use tax?
No. The package combined the physical DSL connection with Internet features, but consumers received only Internet access, not voice service. Its essence was Internet access protected from state sales …
Does a church qualify for the Kansas sales tax exemption for religious organizations, and how must its exempt purchases be made?
Yes. A church that is exempt under I.R.C. 501(c)(3) and is carrying out the ministry of the church meets the criteria (set out in Notice 98-05) to be extended the Kansas sales tax exemption for religi…
Are a publisher's electronic (online, CD-ROM, Internet) versions of its 111 subscription publications exempt from New York sales tax as periodicals, the same as their print counterparts?
It depends on each title. New York's periodical exemption extends to an electronic edition only if there's also a genuine printed edition and the electronic version is identical to it (aside from adve…
Did merging two out-of-state LLCs that jointly owned mortgaged Florida property trigger documentary stamp tax on the merger?
No. The Florida real property vested in the surviving Georgia LLC by operation of law, so the merger itself did not trigger documentary stamp tax. A contemporaneous new mortgage was a separate taxable…
Are a corporate aviation division's purchases of jet fuel, fueling/defueling services, and grease and other maintenance supplies for its aircraft exempt from New York sales tax?
Yes, if the aircraft qualifies as 'commercial aircraft' — meaning over 50% of its use is compensated transportation of others and the company retains dominion and control over its own aircraft. Once t…
Which of a research-and-advisory firm's various services — subscription research, white papers, reprints, teleforums, in-person presentations, and strategic consulting — are subject to New York sales tax when delivered to a customer in New York?
It splits by service. The subscription 'Continuous Advisory Service' (research notes and access to the online research library, shared identically with many clients) is a taxable information service, …
Is blended biodiesel (about 20% biodiesel, 80% petroleum diesel) subject to Connecticut's motor vehicle fuels tax, and if so at what rate?
Yes. Blended biodiesel -- here about 20% pure biodiesel mixed with 80% petroleum diesel and usable in most diesel engines -- is subject to Connecticut's motor vehicle fuels tax at the DIESEL FUEL rate…
Was a country club's separately stated annual service charge subject to Florida sales tax?
Yes. The mandatory annual service charge was used to compensate food-and-beverage personnel and benefited the club. Florida treated it as a service included in the sales price of members' food and bev…
Was a country club's mandatory annual prepaid gratuity subject to Florida sales tax?
Yes. The club's mandatory annual prepaid gratuity helped fund service-staff compensation and was a service included in the sales price of members' food and beverages. The club had to collect tax when …
Was synthetic gas sold for electric generation subject to gross receipts tax and sales tax?
It was subject to gross receipts tax but exempt from sales tax. Florida treated gas made from solid fuels as manufactured gas, outside the natural-gas gross-receipts exclusion, while the separate sale…
Were five types of already-installed hospital imaging systems movable tangible personal property or immovable component parts under Louisiana Civil Code article 466?
All five were immovable component parts. They were hardwired electrical installations, two also connected to plumbing and cooling, and removal of every modality would substantially damage the equipmen…
When did the state-tax exemption for events and transactions at a parish-owned arena begin after local authorities adopted public-facility tax exemptions?
It began with the original 2001 ordinances because parish-owned facilities were then the only publicly owned facilities in the jurisdiction. The 2002 amendments covering all publicly owned facilities …
Are labor charges for repairing the roof of a commercial building subject to Kansas sales tax?
Yes. Commercial roof-repair services were taxable under K.S.A. 79-3603(p) and (q) because the work installed new roofing materials and repaired existing materials that formed part of the real estate. …
Was a separately charged DSL service used only for Internet access taxable during the federal Internet-tax moratorium addressed in PLR 03-2?
No, for the historical period addressed. The Department did not impose sales or use tax on the described DSL Internet-access charges from October 1, 1998 through November 1, 2003 because of the federa…
How did South Carolina apportion a corporation's royalty income from licensing FCC intangibles?
The corporation used South Carolina's single-factor gross-receipts method. On the stated facts, royalties from FCC licenses used to serve markets outside South Carolina were sourced outside the state,…
Which dinner-cruise meal costs had to be included when computing Florida use tax?
The dinner-cruise operator had to compute use tax on production costs attributable to the meals, including food, paper products, and kitchen labor. Indirect electricity, gas, and water overhead was ex…
Which student lodging, homestay, camp, and school-space charges were taxable in Florida?
Ordinary dormitory, villa, and off-campus lodging was taxable unless an exemption applied. Homestay payments were not transient rent; qualifying full-time postsecondary students and custodial-camp lod…
Which parts of a mixed interior and exterior landscape-maintenance contract were taxable?
The interior and cafe potted-plant maintenance was taxable as work involving tangible personal property. Exterior landscape maintenance was an improvement to real property, so the contractor did not c…
Are the gross receipts for installing a building's overhead door exempt under the Kansas manufacturing machinery and equipment exemption?
No. The gross receipts for installing a building's overhead door are taxable and do not qualify for the Kansas manufacturing machinery and equipment exemption in K.S.A. 79-3606(kk). Although that exem…
Does a custom reprographics/imaging business (blueprinting, diazo copying, CAD plotting) qualify for the Kansas manufacturing (integrated plant) exemption on its equipment and repair parts?
No. A custom reprographics and imaging business (blueprinting, diazo and plain-paper copying, mapping, CAD plotting, mounting/laminating) is treated as a retailer, not an industrial manufacturer, so i…
Is the first-time sealcoating of newly installed asphalt pavement, applied months after the paving job, part of the original capital improvement (and therefore exempt from sales tax) or a separate taxable repair/maintenance service?
It can be exempt, but only under specific conditions. If a contractor can show the initial sealcoating relates directly to asphalt it installed as a genuine capital improvement, and the sealcoating ha…
Are the fees an amusement-park game operator charges to play carnival-style games for a chance at a prize subject to New York sales tax as an admission charge, and are the prizes themselves taxable?
No, the game fees themselves aren't taxable — courts have held that paying to play a game of chance for a prize isn't an 'admission charge' to a place of amusement, since there's no separate charge ju…
When a seller of art lets a buyer pay for a multimillion-dollar purchase in installments over 18 months but hands over possession at the first payment, is sales tax due on the full contract price right away, or only on each installment as it's paid?
The full amount, all at once. New York's sales tax is a 'transactions tax' that attaches at the moment title or possession transfers — not a payment-by-payment tax. Because the buyer here received pos…
Is a 15-year lease of a sightseeing vessel used for Statue of Liberty harbor tours exempt from New York sales tax as a commercial vessel engaged in interstate commerce, and if not, when is the tax due?
It depends on facts the Department couldn't verify from the petition alone. A vessel leased out to run sightseeing tours can meet the 'commercial vessel' definition (transporting people for hire), but…
When a New York S corporation shareholder moves out of state partway through the year, must her pro rata share of the corporation's capital gain be prorated between the resident and nonresident periods?
Yes. Following McNulty, Wertheimer, and Greig, the shareholder's pro rata share of the S corporation's income for the year residency changes must be prorated by the number of days in each period. The …
Which parts of an executive office-suite company's flat monthly membership fee (office space, mailbox, phone lines, secretarial services, conference rooms) and its separate 'a la carte' add-on services are subject to New York sales tax?
The flat monthly membership fee bundles taxable items (locked mailbox storage, dedicated phone lines, voice mailbox, live-answer tele-secretarial service, high-speed DSL, and photocopier/fax rental) w…
Did Florida treat the aircraft synthetic lease as a taxable operating lease or a conditional sale?
Florida treated the aircraft agreement as a conditional sale, provided the implicit interest rate matched the lessor's regular loan rates. Tax was due when the agreement began, but the later principal…
Is a transaction called a lease but structured as a financing arrangement taxed as a lease, or as a sale, under Kansas sales tax?
It depends on the buyout. A transaction called a lease but reported as a sale/purchase for federal income tax is not taxed as a lease under K.S.A. 79-3603(h); if it transfers tangible personal propert…
Does the requesting organization qualify as an exempt 'educational institution' under the Kansas Retailers' Sales Tax Act?
No. After reviewing the materials submitted, the Department concluded the organization does not qualify as an 'educational institution' as defined by the Kansas Retailers' Sales Tax Act, so it cannot …
Were percentage-based usage fees paid to an equipment owner taxable lease or rental payments when the owner retained control and was paid only if the equipment reached a customer?
No. The Department treated the arrangement as revenue sharing, not a lease or rental to the leasing company, because the owner retained control and granted no enjoyment for a certain time. It also fou…
Did Florida documentary stamp tax apply to the bank's unsecured credit-line forms?
No. The application, agreement, approval notice, and access check were not subject to documentary stamp tax because, as unsecured credit-line documents, they did not contain an unconditional written p…
Can an out-of-state seller deduct sales of sales-tax-exempt health care supplies from Texas receipts when the goods are shipped to Texas reps and sold to hospitals only later on a consignment basis?
No, not on these facts. A corporation may deduct from Texas receipts the sales of health care supplies that are shipped from outside Texas and are exempt from sales and use tax under Tax Code Sec. 151…
Could the banking group stop filing Florida consolidated corporate income tax returns?
Yes, subject to three stated conditions. Florida allowed the banking group to discontinue consolidated returns because banking-law changes, considered together with the group's major growth and change…
Can a church-operated thrift shop stop collecting Kansas sales tax because all of its sales proceeds are donated to charity?
No. A church-operated thrift shop must continue to collect and remit the applicable Kansas state and local sales tax on its retail sales, even though all of the proceeds are donated to local charities…
Could Burlington Northern Santa Fe apply AT&SF's 1974 special New Mexico allocation agreement to all 1997 income of the larger railroad created by AT&SF's merger with Burlington Northern?
No. The surviving railroad inherited AT&SF's rights by operation of merger law, but it could not enlarge a taxpayer-specific equitable agreement to cover Burlington Northern income. The merged company…
Are federal and state motor fuel taxes a seller collects from customers included in the Texas franchise tax gross receipts factor?
Yes, based on the facts - and the test is revenue recognition, not who the tax is imposed on. This amended ruling keeps the earlier conclusion (motor fuel taxes are included in gross receipts) but cha…
Does a foreign corporation that only holds title to - or only holds a lien on - Texas real property have Texas franchise tax nexus?
It depends on title versus lien. Holding title to real property in Texas is 'doing business' (Rule 3.546(a)(5)), so an out-of-state corporation that holds title to Texas property is subject to both co…
How did Program Two CAPCO credits affect Florida insurance premium tax returns and installments?
Assuming timely allocation and investment, an investor could claim 10% of its certified investment annually against 2003-2012 premium tax. The April and June 2004 installments ignored the credit, whil…
If an advertising agency produces catalogs for a tax-exempt customer, does the customer's exemption cover the agency's purchases of photography, film production, and printing?
No. An advertising agency that buys photography, film production, and printing to produce catalogs is the consumer of that tangible personal property and those services, so it owes Kansas sales tax on…
Did Florida sales tax apply after a New Jersey-leased vehicle was moved to and registered in Florida?
Yes. Florida sales tax applied to monthly lease payments once the vehicle was brought into and registered in Florida. No credit was allowed for New Jersey tax because that tax was legally imposed on t…
Are the sign-up fee and recurring monthly charges for a health discount card (giving members discounts from medical providers and retailers) subject to Kansas sales tax?
No. The charges for a health discount card — both the initial sign-up fee and the recurring monthly charges — are not subject to Kansas sales tax. Kansas taxes sales of tangible personal property and …
Does an out-of-state retailer get Utah sales tax nexus if a Utah-based company markets its products, processes the sales, and handles returns on its behalf?
Yes. When a Utah-based company (Company B) markets an out-of-state retailer's (Company A's) products on its own website, processes and approves the sales under its own name, collects payment, and hand…
Could the public authority buy bridge-construction materials directly without Florida sales tax?
Yes. The authority's direct material purchases were exempt when it issued the purchase orders, gave vendors its exemption certificate, was invoiced and paid directly, took title, and bore the risk of …
Can a corporation amend a Texas franchise tax report to include excise/motor-fuel taxes in gross receipts when its own books excluded them, arguing GAAP would also allow inclusion?
No, not without proving the original reporting was an error. Under Rule 3.547(c)(5)(A), an amended report may correct an accounting error - a mathematical mistake, a mistake in applying accounting pri…
How should an out-of-state provider of password-based online database access allocate its taxable receipts between New York and out-of-state customers when it bills a New York address but can't track exactly where each password-holder is physically located?
New York sales tax is a 'destination tax,' so only the portion of an online database service actually accessed by users physically located in New York is taxable — but the provider can't use Form ST-1…
Could Red Mesa Construction avoid gross receipts tax penalty and interest by saying its accounting service omitted about $55,000 of receipts and the Department responded slowly to a misaddressed protest?
No. Red Mesa could not show the preparer's qualifications, what facts were disclosed, or any informed advice that the omitted receipts were nontaxable; the shortfall appeared to be oversight or mathem…
Is a single-member LLC that is a 'disregarded entity' for federal income tax still subject to the Texas franchise tax?
Yes. Being a 'disregarded entity' for federal income tax does not exempt an LLC from the Texas franchise tax. Every LLC organized under Texas law, or doing business in Texas, is subject to the franchi…
Was a crewed sport-fishing charter charged by boat and trip exempt from Florida sales tax?
Yes. The crewed charter was solely for fishing and charged a flat rate per boat trip regardless of whether one to four fishermen participated. Because it did not charge per person like a head boat or …
Were hourly professional golf lessons and the included range balls subject to Florida sales tax?
No. The professional golf lessons were exempt, and range balls included without a separate charge were an inconsequential part of that service. The golf-course operator still owed tax when it bought t…
Must a nonprofit that holds an annual fundraising banquet and gun auction collect Kansas sales tax on admission tickets, food, and auction sales?
Yes. A nonprofit chapter that holds an annual fundraising banquet with a gun auction is making recurring sales, so it must register and collect Kansas sales tax on admission tickets, on food and sales…
Are recording-studio services, delivery of the master tape, and duplication of customer tapes subject to Kansas sales tax?
Studio recording services were not taxable, and transfer of the original master tape was incidental to that nontaxable service. The studio therefore paid sales tax on everything it bought to operate a…
Is a company's business of processing clients' customer invoices, statements, and collection letters — including address verification, formatting, and mailing — subject to New York sales tax as a taxable service?
No, the processing service itself is not taxable. Preparing and mailing collection letters, customer invoices, and statements — including verifying addresses and phone numbers, checking state-specific…
Does the installation of durable epoxy resin flooring systems over existing concrete floors qualify as a nontaxable capital improvement to real property, or is it treated like taxable 'floor covering' installation?
Yes, generally. Centimark's epoxy flooring systems — troweled onto concrete in a thick, chemically-cured coating that bonds permanently and can't be removed without destroying the floor — are 'floorin…
Which dental-lab materials were exempt in Florida, and what documentation did the seller need?
Materials that became part of dental products dispensed to a patient were exempt, including qualifying Rx-only items. Other non-Rx sales needed a resale certificate or patient-incorporation affidavit.…
Are a residential contractor's installations of built-in kitchen appliances, duct-work humidifiers, and a motorized awning capital improvements exempt from sales tax, and does trash removal from the contractor's own shop dumpster qualify for the same capital-improvement exemption as job-site debris removal?
Split results. Built-in appliances fitted into custom cabinetry (dishwasher, refrigerator, sink, hood, cooktop) and duct-work humidifiers are capital improvements — installation labor is exempt, thoug…
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