State Tax Rulings
Free state tax letter rulings and advisory opinions with plain-English summaries, full citations, and the original source on every page.
No rulings match these filters
Try a different search term or clear the filters.
Was a student scholarship-matching service taxable, and when could its printed personal reports be bought for resale?
The matching service was taxable information service. Personal reports sent to students could be printed for resale, but reports sent to third parties and other business materials remained taxable to …
Was a computer-generated custom diet plan taxable, and were diet cookies sold as meal replacements or supplements taxable?
The custom diet plan was taxable data processing, and the Texas seller could give its out-of-state processor a resale certificate. The diet cookies were not taxable as meal replacements or food supple…
How did Texas tax a parent's formation transfer of vehicles to a subsidiary and a later sale of all subsidiary stock?
The formation-stage vehicle transfer was not taxed when the new subsidiary gave only stock; added consideration, including lien assumption, made it taxable. The letter separately said motor vehicle sa…
Was a photocopier charge based on the number of copies made taxable when it was billed separately from the machine's other rental and service charges?
Yes. The per-copy or meter-click charge was taxable as part of the photocopier rental price because it adjusted the rent according to actual use. Separate billing did not change the result.
Was the sales-tax permit fee due when the permit was issued before October 1, 1991, but the permit holder's first taxable sale occurred on or after that date?
No. The internal memorandum concluded that H.B. 11, Section 14.16(b), did not impose the permit fee when the permit itself was issued before October 1, 1991.
Which electricity used by a mobile-home park's water system was exempt, and how did Texas treat a meter serving both exempt and nonexempt uses?
Electricity used to extract water, move it to holding tanks, and process it was exempt; electricity used to transport processed water was not. A mixed-use meter required the predominant-use analysis i…
Was demographic and marketing information taxable when customers selected regions and databases but the underlying information remained available to other customers?
Yes. The information services were taxable because the information was available to multiple customers and was not proprietary to one client. Customer-selected regions and databases did not make it cl…
Did the Utah State Tax Commission decide whether vehicles bought in Utah and immediately transferred to a bottler's out-of-state subsidiaries qualify for the nonresident-purchaser sales tax exemption?
No. The Commission refused to issue an advisory opinion at all, because the taxpayer's exemption question was already pending on appeal before the Commission itself -- ruling in advance would have pre…
Was a motor-vehicle extended warranty taxable, and how did Texas treat parts, labor, and a customer deductible on repairs performed under the warranty?
The 1991 letter said the extended warranty was not taxable. Parts used for covered repairs were taxable, labor was not, and the deductible reduced the total charge. STAR now flags the cited Rule 3.359…
When was sales tax due on a financing lease entered into by a yearly filer when the transaction created more tax liability than the yearly or quarterly filing limits?
Tax was collected when the lessee took possession or when the first payment became due, whichever came first. Because the liability exceeded the stated yearly and quarterly limits, the transaction req…
Was chemically injecting trees to prevent oak wilt taxable when the provider performed no tree trimming, removal, or other ancillary landscaping?
Yes. Texas treated identifying or treating tree disease as a taxable arborist and real-property service. The entire service price was taxable, while transferred products and supplies could be bought f…
How did Texas tax installing and maintaining reverse-osmosis water equipment when the company might sell, lease, or retain control of the units?
Treatment depended on the agreement. A sale and installation or an equipment rental was taxable, with maintenance treatment varying by property type. If the company retained ownership, operation, and …
Under SC Revenue Ruling 91-14, did a coin-operated batting cage owe admissions tax and an amusement-machine license tax?
The charge to use a coin- or token-operated batting cage was subject to the historical admissions tax because the cage was a place of amusement. But a batting machine on which admissions tax was impos…
When did SC Revenue Ruling 91-13 let a machine shop buy production inputs, machinery, and electricity without sales or use tax?
A machine shop qualified when manufacturing tangible personal property for sale was regular, continuous, and a substantial part of its business. Inputs becoming components or used directly in that pro…
Which purchases by commercial vessels were tax-exempt, and did sales to individual seamen, foreign passengers, or resellers qualify automatically?
Only specified vessel purchases qualified with a complete exemption certificate. Commercial vessels over eight tons could exempt repair and component items, and qualifying interstate or foreign vessel…
Were annual hunting-rights fees and additional fees charged per bird taxable when they granted hunters a right in private real property?
No. The Comptroller treated both the annual hunting-rights charge and the per-bird charge as payment for a personal license or profit a prendre in private real estate, not as taxable sales.
Is each fund of a multi-fund regulated investment company (mutual fund) a separate corporation for Connecticut corporation business tax?
Each fund is treated as a separate corporation. A multi-fund regulated investment company (a RIC -- essentially a mutual fund with several 'series' funds) asked how Connecticut's corporation business …
Is delivering video programming to consumers by microwave or satellite a 'community antenna television service' subject to Connecticut sales tax?
Yes -- it is a 'community antenna television' (CATV) service. A company delivered video programming directly to consumers by microwave or satellite, with customers using descrambling equipment. DRS ru…
Is deeding land from co-tenants to their newly formed partnership a taxable contribution of partnership assets under Connecticut's conveyance tax?
Taxable. Three people held two parcels as tenants-in-common since 1983 and filed partnership tax returns, but didn't sign a formal partnership agreement until 1990 -- and that agreement described thei…
Does incorporating a farm void the individual farmer's tax exemption permit, and can the new corporation use the farmer's sales history to qualify?
Two traps. A farmer with a Connecticut Farmer Tax Exemption Permit planned to transfer his farm to a newly formed corporation in exchange for its stock. DRS ruled: (1) the transfer makes the farmer's …
Were marine mechanical-breakdown policies taxable when sold for pleasure boats, and did the answer change for large vessels used exclusively in commerce?
The policies were taxable when sold for sport-fishing or other pleasure vessels. They were not taxable for vessels of at least eight tons fresh-water displacement used exclusively for commercial purpo…
Did contract language immediately vesting title in the United States make overhead materials used by a federal service contractor tax-free purchases for resale?
No. Texas treated overhead materials used or consumed by the service provider as taxable to the provider despite contract language vesting title in the federal government. Resale required both title a…
Was a map-based flood-zone certification service for mortgage lenders taxable when it involved no on-site survey and was insufficient to rate flood insurance?
No. The service was neither surveying nor insurance on the stated facts, so the provider did not collect tax. It did owe tax on the certificates and other materials used to perform the service, includ…
Was an hourly service that searched for scholarships, grants, student loans, and other financial aid taxable, and which inputs could be bought for resale?
Yes. Texas treated the educational consultant's search as a taxable information service. The consultant paid tax on consumed supplies but could buy transferred property and the search database for res…
Could a hotel manager make tax-free purchases for Resolution Trust Corporation property by showing vendors only the RTC's general tax-exemption form letter?
No. The RTC form letter alone was insufficient. The manager needed proof that title to the hotel transferred to the RTC and a written agreement appointing the manager as RTC's purchasing agent before …
Are medical billing, payment processing, collection, and customer-service functions subject to New York sales tax?
No. Datamedic Corp. provides medical practices with billing, insurance-claim/payment processing, collection, and patient customer-service functions (coding claims, submitting them to carriers, posting…
Is an on-line financial news service an exempt newspaper/periodical, or a taxable information service, and is the delivery equipment taxable?
Taxable information service, not an exempt newspaper or periodical. Market News Service's 24-hour on-line international financial news is delivered as an electronic readout/display on a screen, not in…
Is a banquet gratuity charge subject to sales tax when the operator keeps part of it instead of paying the entire gratuity to the banquet employees?
Yes — the entire gratuity charge is taxable. A separately stated, gratuity-designated charge escapes sales tax only if ALL three conditions in 20 NYCRR § 527.8(l) are met, and the third is that all of…
On an automobile lease with a purchase option, is sales tax due on the down payment, and who is responsible for collecting the tax on the full lease price?
For this pre-June-1, 1990 automobile lease with a purchase option, sales tax was due on the FULL lease price and had to be collected on each payment made under the lease — and the lessor/vendor (the l…
Was a computerized service that called patients or clients to remind them of appointments taxable when it sent customers only a list confirming completed calls?
Yes. Texas taxed the entire appointment-reminder charge as a telecommunications service. Printed call lists transferred to customers could be bought for resale, while other supplies and equipment rema…
Did a natural-gas marketer have to collect Texas tax when pipeline title and possession passed outside Texas, and what changed when both passed in Texas?
No collection was required when both title and possession passed outside Texas; any later Texas use-tax duty belonged to the customer. When title and possession passed in Texas, the marketer had to co…
Did an out-of-state software company create Texas tax obligations by sending employees into Texas for customer training, and which software charges were taxable?
Yes. Employee training visits made the company engaged in business in Texas, requiring a permit and use-tax collection. Software, installation, and support were taxable; separately stated training was…
How did Texas tax software delivery, installation, support, programming, and hardware sales when bank customers were located inside or outside Texas?
Texas taxed software and hardware delivered in Texas, installation of the seller's software, and support for Texas customers. Direct out-of-state delivery was not taxed. Contract programming was nonta…
Could a food-service subsidiary buy disposable meal-service items tax-free when it transferred them with taxable prepared meals to its carrier parent?
Yes. The subsidiary was a separate food-service retailer and could use a resale or exemption certificate for nonreusable items transferred with taxable meals. The vendor could refund tax within the fo…
How should a Texas printer tax one invoice covering signs delivered to stores in both Texas and New Mexico, and what records were required for a refund?
Only signs delivered in Texas were taxable, but a lump-sum mixed-state invoice was presumed fully taxable. The printer had to separately state Texas and out-of-state charges and retain shipping record…
When did live operator answering services become taxable in Texas, and were automated answering and voicemail services already taxable?
Live operator answering services were nontaxable when the letter was issued but became taxable October 1, 1991. Automated answering and voicemail were already taxable telecommunications services and r…
Who owed Texas vehicle tax when a financing seller understated the sale price on the county tax receipt?
The seller remained responsible. Documents showed a $5,950 sale and $458.80 collected for tax, title, and license, but only a $595 price and $35.70 tax were reported. Repossession did not remove the s…
Were customer charges for drug testing and drug screening services subject to Texas sales tax?
No. The Comptroller concluded that performing drug tests and drug screening was not a service subject to Texas sales tax on the facts presented.
How did the 1991 guidance say contractors and subcontractors should document separated material and service charges for exempt-entity work?
Contractors needed permits and resale certificates. A subcontractor qualified for exemption when material costs were separated from service costs; the contractor issued a resale certificate to the sub…
Could a waste hauler buy roll-off boxes for resale, and was its total charge for placing, picking up, dumping, and returning the boxes taxable?
Yes to both. The company could buy the roll-off boxes tax-free with a resale certificate and seek a vendor refund for six previously taxed boxes. Its entire customer charge for collecting and removing…
Is equipment installed at an IDA-financed facility exempt from sales/use tax when purchased as the IDA's agent with title passing to the IDA?
Exempt — but only if two conditions hold. American Linen installed a Memtek wastewater treatment system as replacement equipment at a Buffalo plant financed under a 1978 industrial revenue bond lease …
Could a Texas provider of a nontaxable service add a 'Texas Price Adjustment' to recover sales tax paid on consumed items?
Yes. The Comptroller said the adjustment did not violate Rule 3.324(b)(4) because it recovered the provider's own tax cost without representing the amount as sales tax imposed on the customer.
How did Texas's 1991 motor-vehicle-repair change treat separately stated consumable supplies and lump-sum repairs?
A repair shop separately stating parts and labor could buy qualifying consumable repair materials tax-free for resale and collect sales tax on the itemized customer charge. A lump-sum repairer instead…
Were services performed under insurance policies for unauthorized or surplus-lines insurers taxable Texas insurance services?
Yes, when performed in Texas for an insurer doing insurance business in Texas. The Comptroller treated unauthorized insurers engaged in insurance as insurance carriers and required the provider to pre…
Is a fireworks-display contract taxable, and is selling fireworks outright to an exempt organization that runs its own display taxable?
It depends on which of two arrangements is used. (1) When Auburn Fireworks contracts to PUT ON a fireworks display — providing the pyrotechnics, crew, and insurance — the customer never takes title or…
Was writing 'Paid by cash' on a customs-broker export certificate and obtaining the customer's signature enough to document a Texas sales-tax refund?
No. The receipt also had to state the cash amount, identify it as a tax refund for specifically exported items, show the refund date, and include the purchaser's name, address, and signature.
Were full-time peace officers acting as independent contractors required to collect Texas sales tax on guard services?
No. The Comptroller said their guard-service charges were not taxable because the statutory security-service definition covered services requiring a license, and full-time peace officers did not need …
Were translation services taxable, and did the tax treatment of a hired typist depend on whether the typist used a word processor or a typewriter?
The described translation services were not taxable. A hired typist's charge was taxable data processing when a word processor was used, but ordinary typing performed with a typewriter was not taxable…
Was a separately stated fuel charge taxable when machinery was supplied with a service, with an operator, or as a bare rental?
It depended on the arrangement. Fuel was taxable as part of a taxable service and as part of an equipment rental with an operator, but a separately stated fuel charge was not taxable when the equipmen…
Did vehicles received instead of foreclosure qualify for Texas's sale-for-resale exemption when they would be used before resale?
No. A vehicle titled for resale could not be driven, and the requester planned to use the vehicles while holding them, so the resale exemption did not apply. The letter said no other exemption covered…
Our cooperative housing corporation ended up owning back its own unsold shares (for 8 vacant and 22 occupied units) after a messy chain of foreclosures and a bank settlement, paying the bank $1,215,000 for the first mortgage, second mortgage, and all the unsold shares combined. When we eventually resell those unsold units, is that subject to New York's Real Property Transfer Gains Tax, and what's our original purchase price?
Yes, future sales of the unsold cooperative shares will be subject to the gains tax if their combined consideration reaches $1 million, and the cooperative corporation's original purchase price for th…
Was a separately stated charge for a technical specialist's future installation advice taxable with the sale of an oil-well packer?
Yes. The specialist's advice was requested with the packer and accompanied its sale, so Texas treated the service as part of the taxable sale even though it was separately stated and performed after t…
Which parts of a credit consultant's work were taxable debt collection, and which were nontaxable consulting services?
Work on actual past-due accounts was taxable debt collection, while general credit procedures, staff training, and advice unrelated to specific delinquent accounts were nontaxable unrelated services. …
Was a boat broker's commission subject to Texas sales tax when the principal's boat sale qualified as an occasional sale?
No. If the business acted as a disclosed broker and the principal was not a seller and qualified for occasional-sale treatment, the boat sale was not taxable and the broker's commission was not subjec…
Could an exempt nonprofit homeowners association buy member services tax-free and recover sales tax it had paid in error?
Yes. The association could issue exemption certificates for purchases related to its exempt function when it did not separately charge members, and it could request supplier refunds for tax paid in er…
Which seller-financed mortgage-servicing activities were taxable in Texas when billed through setup and monthly service fees?
Coupon books, delinquency notices, and computer-produced account or IRS reports were taxable; document storage, payment verification and remittance, and recording a lien release were not. A lump-sum f…
Were sales of microbial odor neutralizers for municipal, industrial, and agricultural wastewater uses subject to Texas sales tax?
Generally yes. The seller had to collect tax unless the customer supplied a valid resale or exemption certificate; cities and utility districts could qualify for exempt-function purchases, some manufa…
Were charges for balancing and changing the stroke of an oilfield pumping unit subject to Texas sales tax?
Yes. Texas treated an oilfield pumping unit as tangible personal property and classified balancing and bore-stroke modification as taxable remodeling, making the entire charge taxable.
Are ophthalmic (eye) surgical suture materials exempt from New York sales tax as prosthetic aids or as drugs/medical supplies?
Exempt as medical supplies under Tax Law § 1115(a)(3), not as prosthetic aids under § 1115(a)(4). Alcon's ophthalmic sutures (silk, dacron/nylon, polypropylene, polyester) are used to close surgical e…
Is a company that copies and sells certified hospital medical records selling taxable tangible personal property or an exempt service?
Taxable. A company copied certified hospital medical records and sold the copies to attorneys, insurers, peer-review organizations, government agencies, and individuals. DRS ruled this is a taxable SA…
How these rulings are useful
- See how the rule applies: A letter ruling shows how a state revenue department actually applied the tax law to a specific business and set of facts.
- Plan with confidence: Find a ruling with facts close to yours before you charge, remit, or claim an exemption.
- Binding only on the requester: A ruling is binding on the department only for the taxpayer who asked. It is persuasive, not a substitute for your own ruling or professional advice.
- Research across states: Compare how different states treat the same issue, from SaaS and food exemptions to nexus and contractor purchases.