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 an insurance marketer need a Texas sales-tax permit merely to use computers to obtain prospective-customer leads?
No. Insurance coverage was not subject to sales tax, and using computers to procure insurance leads rather than sell taxable items did not require a permit. The marketer still owed tax on buying, leas…
Can a retailer advertise and sell an item at a uniform tax-included price, and what must it do at the register?
Yes, with conditions. Amerada Hess Corporation asked whether advertising and selling Hess toy trucks at a uniform 'tax included' price would violate Tax Law § 1132(a), § 1133(d), or other provisions. …
New York Advisory Opinion TSB-A-89 (8)I: Issue raised is whether, for purposes of Article 22 of the Tax Law, the gain on the sale of a business in New York State and the subsequent purchase of another business would qualify for the exclusion of a capital gain under section 612(o) or the deferral of a capital gain under section 612(p).
No. The Department ruled that Robert Goodheart's capital gain from selling his stock in Low Surgical and Medical Supply Co. qualifies for neither the section 612(o) exclusion nor the section 612(p) de…
When could architects use resale certificates to buy blueprints and other printing or duplication work under Connecticut Ruling 89-99?
Architects could use resale certificates only for printing and duplication passed directly to clients or others in the bid process. Any other use meant the architect consumed the work and owed tax. Bl…
Were forensic-engineering investigations for insurance and legal clients taxable under Connecticut Ruling 89-101?
No. Accident investigation, component-failure analysis, and fire-cause investigation were outside the cited categories for building engineering/design and business consulting or public relations. DRS …
Did Connecticut Ruling 89-100 preserve a municipality's exemption when architectural services and building materials were purchased through a private intermediary?
No. Direct contracts between the architect, subcontractors, and exempt entity qualified, with the required certificate. A private intermediary in a turn-key project became the purchaser, so the exempt…
Who had to collect Connecticut sales tax on firearms bought at a tax-exempt charity's auction: the auctioneer or the delivery agent?
The auctioneer was treated as the retailer and had to collect and remit tax on the firearm sales. The company that only transported the firearms to buyers under firearm regulations was not required to…
Which separately contracted pipeline inspection, cleaning, testing, repair, valve, boosting, evacuation, and temporary-equipment services were taxable?
Pipeline cleaning, linalog and X-ray inspection alone, hydrotesting, capacity boosting, and evacuation were nontaxable when separately contracted directly with the provider. Repairs, digging, pipeline…
Was trash removal taxable when performed as part of otherwise nontaxable restoration of flood-damaged real property?
Yes. The Comptroller said waste-removal service remained taxable even when connected with a nontaxable restoration service following a natural disaster.
Did keeping production rooms at Class 100 or better air quality make the janitorial service exempt as necessary to manufacturing?
No. Cleaning rooms where production occurred was taxable because the janitorial service was performed on the physical facility, not directly on the manufactured product. Rule 3.300 supplied no exempti…
How did Texas tax installation and repair of refrigeration units on trucks and trailers?
Sale and installation of a vehicle refrigeration unit were taxable. Repair labor on a truck- or trailer-mounted unit was not; in lump-sum repairs the shop paid tax on parts, while with separately bill…
Did the 1989 nonprofit-publication exemption cover books, magazines, newsletters, and other writings produced and sold by a chamber of commerce?
No. The new exemption covered writings published and distributed by specified nonprofit religious, philanthropic, charitable, historical, or scientific organizations, but not civic organizations. The …
Could multiple gas suppliers rely on copies of one engineer-sealed predominant-use utility study, or did each exemption certificate need an original seal?
Copies were acceptable only when attached to a new original exemption certificate for the proper supplier and covering the same location and meter as the original study. A different meter needed its o…
Was partial interior demolition of an existing nonresidential building taxable remodeling, and was later refitting the shell taxable?
Yes. Converting a finished existing building into an unfinished shell through interior demolition was taxable nonresidential remodeling, and refitting the shell also was taxable. Only razing a buildin…
Robert F. Abend, Jr. asked whether living aboard a sailboat that will never enter New York State - while maintaining no New York abode and spending no more than 30 days a year in the state - would establish a permanent place of abode elsewhere and change his domicile away from New York for personal income tax purposes.
No. The Department ruled that living aboard a sailboat, even one that never enters New York and is used to cruise the southern US coast, the Bahamas, and the Caribbean, doesn't create the kind of fixe…
Were firearm sales subject to Connecticut sales tax under Ruling 89-96, or did the right to bear arms prevent the tax?
Firearm sales were taxable because firearms were tangible personal property and no stated exemption applied. The ruling also concluded that imposing sales tax on firearms did not tax or infringe the c…
Did an out-of-state auction avoid Texas sales tax when the equipment stayed in Texas and buyers took possession there?
No. The seller had to collect Texas sales tax because the equipment was in Texas and buyers took possession in Dallas, subject to a valid resale certificate.
Are wheelchair wheel covers exempt as medical equipment, and are the maker's production and subcontracting costs also exempt?
Yes — the covers are exempt, and so are the related production costs. New Directions International Inc. manufactures plastic wheelchair wheel covers that clip over the spokes to keep the occupant's fi…
Can a customer's purchase orders serve as sales-tax exemption certificates if they include only part of the ST-120 or ST-121 form?
No — the purchase orders are not valid exemption certificates. Edward Joy Co. received purchase orders from General Electric that contained only portions of the information required on Form ST-120 (Re…
When were services of temporary contract personnel treated as work performed by the customer's own employees rather than a purchased taxable service?
The treatment applied when the work was normally performed by the customer's employees, the customer supplied all equipment and supplies, and the workers were under its direct or general supervision. …
Were a university press's biography sales exempt, and did one weekend of sales in another city require a temporary outlet or return adjustment?
No publication exemption applied because Section 151.312 expressly excluded educational organizations. The letter said Belton and Temple then had the same 7.5% combined rate, and one weekend of Temple…
Was the South Carolina minority-business income-tax credit applied separately to each eligible subsidiary in a consolidated return, or once to the consolidated group as a whole?
Separately to each eligible subsidiary. A subsidiary holding the state contract could claim up to the lesser of $25,000 annually or its allocated share of consolidated tax liability. Each subsidiary h…
Were fees to design and administer a Section 125 cafeteria benefit plan taxable as insurance or data-processing services?
No. Designing, presenting, enrolling employees in, and administering the plan were nontaxable insurance services. Preparing account-status documents with a computer was not data processing because the…
A demolition and excavation contractor that also hauls debris and leases trucks/machinery wants to switch from filing as an Article 9 transportation corporation to Article 9-A — which of its many revenue streams count toward the 50%-of-receipts "principally engaged" test, and can the Department just decide the classification in an advisory opinion?
Carting/hauling of others' debris and soil is Article 9 transportation revenue; hauling the company's own property is neither Article 9 nor Article 9-A revenue; material sales, disposal service, machi…
Was a subscription service taxable when it listened to radio contests and phoned a subscriber if the subscriber's number was called?
No. The Comptroller said the service did not furnish general or specialized news or other current information under Rule 3.342; it merely told the subscriber whether that subscriber had a winning numb…
Were charges to remove combustible material from electrical cable trays taxable, and could scheduled-periodic maintenance treatment apply?
Yes. Because the cable trays were improvements to realty, removing material from them was taxable janitorial service and waste collection under Rule 3.356(a)(1). Rule 3.357's scheduled-periodic-servic…
How did Texas tax repair or maintenance of automatic fire systems and periodic grease removal from kitchen exhaust systems?
Repair or maintenance of a fire system treated as tangible personal property was taxable, as was repair, restoration, or remodeling of a realty improvement in a nonresidential building. Scheduled prev…
Were charges for searching national computer records and providing a person's current address taxable Texas information services?
Yes. The company furnished current information under Rule 3.342(a)(2). The service did not qualify for Rule 3.342(d)(1)'s exemption because the address information was not proprietary and could be sol…
Was scheduled bowling-lane resurfacing a taxable repair, and did per-lane billing change the result?
No. Periodic, scheduled lane resurfacing was nontaxable maintenance, and charging by the lane did not change that status. Work performed only as needed or after something broke was taxable repair, inc…
Did Connecticut Ruling 89-94 include a lessee's property-tax reimbursement in the lessor's taxable gross receipts?
Yes, generally. A lessor's gross receipts included all amounts paid by the lessee, including property-tax reimbursement. The ruling identified an exclusion only for property-tax reimbursement under a …
When were housekeeping services in a private home exempt as temporary employee replacement rather than taxable maid-company service?
A housekeeper from a temporary employment service was exempt when supplementing or replacing the household's own employee who was sick or on vacation. Maid-company service was taxable, as was temporar…
What information did the Comptroller require before processing this direct payment permit application?
The applicant had to clarify its construction contract and building ownership, complete officer and affiliate details, show it met the $800,000 annual taxable-purchase threshold, promise certificates …
Were two-way-radio equipment, installation, and delivery charges taxable when the system served offshore rigs in federal waters?
Onshore equipment and installation were taxable because the radios did not themselves perform mineral exploration or production. Equipment rented and installed on a rig in federal waters was exempt wh…
When did Connecticut Ruling 89-91 impose sales tax on a gift certificate transaction: at purchase or redemption?
The gift certificate purchase was not taxable. The certificate became consideration when redeemed, and sales or use tax then applied to the total sales price of taxable merchandise purchased with it.
Was electricity sold for use in the municipal tax district described in Connecticut Ruling 89-90 taxable?
No. The ruling said electricity used in the municipal tax district qualified for the residential-dwelling exemption. DRS says the information is not current and PS 94(3) superseded the ruling.
Did Connecticut Ruling 89-89 exempt electricity supplied through one meter to an apartment building used predominantly as residential dwellings?
Yes. Electricity sold to the single-meter apartment building was exempt if the building and its electricity use were predominantly for residential dwelling purposes. DRS says PS 94(3) superseded the r…
Were construction staking, locating and certifying buildings, and delineating wetlands taxable under Connecticut Ruling 89-88?
Yes. The ruling classified those functions as taxable land-surveying services under the cited statute. DRS says the information is not current and AN 94(3) obsoleted the ruling.
Were diet and weight-control counseling services taxable when a Connecticut weight-loss center provided no athletic or exercise facilities?
No. The ruling treated dieting and weight-control counseling by a weight-loss center without athletic or exercise facilities as nontaxable. DRS says the information is not current and AN 95(3) obsolet…
When did Connecticut Ruling 89-85 exempt electricity used by a bakery to manufacture baked goods?
The electricity was exempt if at least 75% was consumed in the bakery's production process. DRS says the information is not current and PS 94(3) superseded the ruling.
Did Connecticut Ruling 89-84 exempt real-estate appraisal charges for both homeowners and financial institutions?
Yes. Charges for real-estate appraisals were exempt under Conn. Gen. Stat. § 12-412(11), regardless of whether the appraisal was performed for a homeowner or a financial institution.
Did Connecticut Ruling 89-83 exempt electricity and gas sold to laundromats and dry-cleaning establishments as manufacturing utilities?
No. The ruling said laundromats and dry cleaners were not industrial manufacturing plants, so their electricity and gas were taxable and did not qualify for the cited manufacturing exemptions. DRS say…
Were a consultant's survey-coordination and interview-oversight services for marketing research companies taxable under Connecticut Ruling 89-82?
Yes. The consultant's hourly charges and reimbursed expenses were taxable, even though marketing research services themselves were exempt. Services for out-of-state clients were not taxable when their…
Did Connecticut Ruling 89-81 exempt charges for rendering a real-estate appraisal?
Yes. The ruling said a charge for rendering a real-estate appraisal was exempt from sales or use tax under Conn. Gen. Stat. § 12-412(11).
Did Connecticut Ruling 89-80 treat land surveyors as consumers of the property and services used in their work?
Yes. Land surveyors were the final consumers of tangible personal property and services purchased for use in performing surveying services, so they paid sales or use tax on taxable purchases.
Did Connecticut Ruling 89-79 exempt electricity used by printers in printing operations?
Yes, when at least 75% of the electricity was consumed in fabricating printed material. The official page says the information is not current and PS 94(3) superseded the ruling.
Were landscaping and related pond-excavation charges taxable under Connecticut Ruling 89-78?
Yes. Landscaping for new construction and existing residential or commercial property was taxable, including pond construction. Related excavation was taxable unless sold to the landscaper with a bona…
Did Connecticut Ruling 89-77 exempt electricity used by printers in printing operations?
Yes, when at least 75% of the electricity was consumed in fabricating printed material. The official page says PS 94(3) obsoleted the ruling and the information is not current.
Did Connecticut Ruling 89-76 exempt electricity used to store harvested fruit and produce in a farmer's cold-storage facility?
Yes. The ruling treated the cold-storage electricity as directly used in agricultural production because the farmer stored harvested fruit and produce there until sale. PS 94(3) later obsoleted the ru…
Did Connecticut Ruling 89-75 exempt electricity and gas used by greenhouse and nursery florists?
Yes, when the utilities were used directly in greenhouse or nursery agricultural production. Florists that merely bought cut flowers and made arrangements owed tax on their utility bills. PS 94(3) obs…
How did Connecticut Ruling 89-74 distinguish exempt engineering from taxable design or drafting services?
A licensed engineer's development of new engineering concepts and original product designs was exempt. Design or drafting services using the engineer's concepts, designs, and specifications were taxab…
Did Connecticut Ruling 89-73 exempt electricity for common-area lighting in predominantly residential apartment buildings?
Yes. When an apartment building was predominantly rented for residential dwelling purposes, electricity for inside hallway lights and exterior lighting was exempt. PS 94(3) later obsoleted the ruling.
Was electricity used to repair and recondition printed circuit boards taxable under Connecticut Ruling 89-72?
Yes. The ruling taxed electricity sold for use by repairers and reconditioners, including a business repairing and reconditioning printed circuit boards for key telephone systems. PS 94(3) superseded …
When were washed, drained, screened, graded, or crushed sand and related delivery charges taxable, and could customers receive refunds?
Washing, sorting, grading, screening, and letting water drain off left sand unprocessed, so the material and delivery were nontaxable. Crushing or mixing was processing, making both material and bille…
Was a city's separately stated $1.10 administration charge taxable as part of a $7.20 garbage-collection bill?
Yes. The total amount charged for garbage collection was taxable, including the $1.10 city administration cost. Separately listing the fee did not remove it from the taxable service charge.
Were postage and carrier charges taxable when a check printer mailed taxable checks directly to bank depositors?
Yes. The charges were connected to taxable checks and the depositor was the relevant customer rather than a third-party recipient, whether the bank acted as agent or reseller. A reseller bank needed a…
We operate a famous oceanfront resort under New York's Innkeepers Law as a transient lodging facility, not a residence -- our rooms mostly lack kitchens, and we're contractually required to keep operating as a hotel for decades. We're selling 51-week annual time-share interests in the resort as cooperative shares to the public, with no single buyer ever acquiring a controlling interest. Since we're a hotel, not a residential cooperative, are these timeshare sales exempt from New York's Real Property Transfer Gains Tax?
Taxable -- selling cooperative timeshare shares triggers the gains tax on cooperative-plan transfers regardless of whether any single buyer ever gets a controlling interest, and regardless of whether …
Was labor to install an above-ground pool on residential property taxable under Connecticut Ruling 89-71?
No, if the installation-labor charge was separately stated on the invoice. The ruling exempted the separately stated labor used to install or apply the above-ground pool sold.
Were conferences for the general public treated as business analysis and management services under Connecticut Ruling 89-70?
No. The Department said general-public seminars that provided specialized information did not fall within the cited business analysis and management services regulation. The ruling is obsolete and sup…
Could a condominium-management company continue prorating taxable gross receipts instead of taxing its full fee?
Yes under this historical ruling. The company could prorate its condominium-association management receipts by the ratio of leased, rented, or investment units to total units. DRS marks the ruling not…
Could a manufacturer obtain a sales-tax refund on an inactive electricity account after changing utility suppliers?
Yes, if the electricity qualified for exemption and the manufacturing operations had not changed. The manufacturer had to give the previous utility supplier properly completed exemption certificates a…
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