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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How did Texas tax and register mopeds, and what happened when a merchant mistakenly collected ordinary sales tax?
A qualifying moped was a motor vehicle subject to historical motor vehicle tax at registration, although it was licensed rather than titled. If a merchant mistakenly collected ordinary limited sales t…
Did Texas rental tax apply to a manufacturer's mobile office buildings delivered to renters inside or outside Texas?
Delivery controlled. A mobile office building delivered to the renter in Texas was rented in Texas and its receipts were taxable, regardless of the rental agency's location. Delivery outside Texas—or …
Is a company that provides chemical (portable) toilets to customers renting tangible personal property, so its charges are subject to Nebraska sales and use tax?
Yes. Providing chemical toilets is a rental or lease of tangible personal property that is subject to Nebraska sales and use tax. Under Revenue Ruling 01-78-12, chemical toilets are tangible personal …
How did Texas document a federal surplus vehicle sale when the federal agency did not sign the seller affidavit?
The federal agency's Form 97-A served as its bill of sale. The purchaser completed and notarized the Seller, Donor, or Trader's Affidavit without a federal representative's signature, entering the sel…
Are a moving company's charges for packing taxable, and does the mover owe tax on the boxes, wrapping paper, and tape it uses?
A moving company's packing and moving charges are a nontaxable service, so the mover does not charge sales tax on its total service charge. But the mover owes Nebraska sales or use tax on the boxes, c…
Could a French foreign-service member assigned outside a U.S. embassy receive a Texas vehicle-tax exemption or refund?
No. The 1978 letter said Texas taxed every retail motor vehicle sale in the state and had no exemption for a foreign-service member who was not assigned to an embassy in the United States. The writer …
Who owed Texas motor vehicle tax on courtesy vehicles loaned by a dealership to a public school district?
The result depended on title. When the dealership held title and loaned the vehicles to the school district, the dealership owed historical motor vehicle sales tax on its purchase price. If the distri…
How did Texas document a dealer or lessor's fair-market-value deduction for a replacement business vehicle?
A qualifying dealer, lessor, or rental company could subtract a replaced vehicle's fair market value from a replacement vehicle's purchase price when both were titled in its name for business or perso…
Was providing sign trailers a taxable rental, and how did Texas tax the provider's trailers, signs, and materials?
Providing sign trailers was an advertising service, not a rental, because customers lacked exclusive use. The provider did not collect rental or limited sales tax from customers. It paid historical mo…
Did a Section 501(c)(3) horse-show association's ordinary sales-tax exemption also exempt its car rentals from Texas vehicle rental tax?
No. The 1978 letter said the association's limited-sales-tax exemption did not carry into the separate motor vehicle rental tax, which then had no general Section 501(c)(3) exemption. STAR now flags a…
Is a charge for grooming a pet subject to Kansas sales tax, and is there any exception?
Yes. Under a 1977 amendment to K.S.A. 79-3606(p), pet shop operators and others who perform pet grooming services must collect and remit Kansas sales tax on the gross receipts from those charges. The …
Was taking over a vehicle and its unpaid note taxable consideration even when no cash was paid to the prior owner?
Yes. Taking over the prior owner's note was consideration even though the prior owner received no cash or other property. The historical taxable amount was the debt assumed when the vehicle changed ha…
What procedures did Texas's Motor Vehicle Rental Tax Guide prescribe for rental businesses beginning September 1, 1977?
The guide created a paper-era system for retailer permits, tax-free rental-vehicle registration, gross-receipts tax, vehicle-by-vehicle minimum tax, fair-market-value deductions, exemptions, certifica…
Did Texas's historical new-resident vehicle tax apply to a former Texas resident returning with cars registered in California?
Yes. The letter treated the returning former resident as a new resident because the vehicles were brought into Texas after being registered in that person's name in California. STAR warns that the $15…
Could Washington sales tax paid on lease payments reduce Texas use tax on a vehicle leased outside Texas?
Yes. Texas based historical use tax on the lessor's acquisition price rather than later lease payments, but credited sales tax already paid to Washington on those payments. The operator owed the Texas…
Did merely passing through Texas in a Canadian tour bus bought outside Texas trigger motor vehicle use tax?
No, on the assumptions stated. The bus would be purchased outside Texas and would only pass through on tour without extended Texas visits or stops, so its transitory presence did not trigger historica…
Could delinquent Massachusetts taxes suspend a new Texas vehicle license and registration?
No. The letter said Texas would not suspend the license and registration for delinquent Massachusetts taxes as long as Texas registration fees and taxes were paid. Moving did not erase the Massachuset…
Was a contractor exempt from Texas motor vehicle tax when renting a mobile office trailer for a public school project?
No. The school district could qualify for exemption on vehicles it purchased, titled, plated, or rented itself, but the contractor did not inherit that exemption merely by acting on the school project…
Could tax paid to a foreign country reduce Texas use tax on a vehicle bought abroad and brought into Texas?
No. Texas granted credit for sales or use tax paid to another U.S. state on the same vehicle, but not for tax paid to a foreign country. The historical Texas use tax applied to a foreign or domestic v…
Why did Texas refund only 95 percent of a historical motor vehicle tax payment, and who refunded the other five percent?
The State refunded only the 95 percent it had received. The county had retained five percent as its collection fee, so the taxpayer had to request that portion separately from the county. In this case…
Were U.S. Department of Labor employees exempt from Texas motor vehicle rental tax while on official business?
Yes. U.S. Department of Labor employees conducting official government business were exempt from the historical motor vehicle rental tax. They had to present identification and travel orders, complete…
Did Texas refund motor vehicle tax when purchased trucks were destroyed, or exempt their replacements?
No. Historical motor vehicle tax applied to every Texas vehicle sale. The law described in the letter had no refund provision for a vehicle later destroyed and no exemption for buying a replacement, s…
When could a Texas county tax assessor accept personal checks for vehicle tax, and what happened if a check was dishonored?
A county collector could accept a personal check, but historical vehicle tax was not paid until the bank honored it. The collector avoided liability for a bad check by satisfying Ruling .035, reportin…
Did a Texas dealer owe vehicle tax while its vehicle was used in Germany before a later Texas sale or use?
No tax was due on the described vehicle while the relevant use occurred in Germany and no Texas sale or use had occurred. Motor vehicle sales or use tax would become due once a sale or use took place …
Who paid Texas tax on a vehicle purchased for lease to a common carrier, and were the lease payments taxed?
The purchaser-lessor owed historical motor vehicle sales tax on the vehicle's purchase price and paid it at titling. The later lease payments were not taxed. At the time, a lease required exclusive us…
Were mopeds subject to Texas motor vehicle sales tax even though Texas licensed but did not title them?
Yes. Texas treated mopeds as motor vehicles. The purchaser paid the historical motor vehicle sales tax to the county collector at transfer and registration. A moped did not receive title but had to be…
Were unincorporated federal agencies exempt from Texas motor vehicle rental tax, and how was the exemption documented?
Yes. The letter exempted unincorporated agencies and instrumentalities of the United States, including the Defense Department's Military Traffic Management Command, from the historical gross receipts …
Did Texas tax digger equipment under limited sales tax or motor vehicle tax when attached to a truck chassis?
It depended on the transaction. A digger sold for attachment to the customer's existing truck was tangible personal property subject to historical limited sales tax. If the seller attached it to a cha…
Are admission charges and food and drink sales on a Missouri River riverboat cruise subject to Nebraska sales and use tax, and how is the Nebraska share determined?
Admissions collected in Nebraska and charges for food and drink made on the Nebraska side of the Missouri River are subject to Nebraska sales and use tax. Under Revenue Ruling 01-77-7, riverboat board…
Do private vendors have to charge Nebraska sales and use tax on goods delivered to people living on a federally owned military housing area?
Yes. Sales and use tax applies to deliveries of tangible personal property by private vendors to people residing on federally owned military housing areas. Under Revenue Ruling 01-77-6, the federal Bu…
Does a Nebraska golf course have to charge sales and use tax on fees for cleaning and storing customers' golf equipment?
No. A golf course operator's charges for cleaning and storing golf equipment are not subject to Nebraska sales and use tax. Under Revenue Ruling 01-77-11, cleaning golf equipment and storing equipment…
Did returning an unsatisfactory car qualify for a Texas tax refund when the dealer kept about $400 for two months of use?
No. A historical refund for a nonconsummated vehicle sale required the seller to take back the vehicle and return the entire purchase price. Because the dealer kept about $400 for two months of use, t…
Was a court-ordered vehicle transfer with no consideration, such as under a divorce decree, a taxable sale?
No. The internal memorandum said a court-ordered vehicle transfer with no consideration, including a transfer under a divorce decree, should not be treated as a sale for historical motor vehicle sales…
What did Texas House Bill 1976 propose for county tax collectors accepting checks and handling dishonored payments?
The bill text allowed, but did not require, county tax collectors to accept checks for listed taxes and fees. Payment remained conditional until the bank honored the check. Collectors obtained maker i…
When a reservation Indian and a non-Indian jointly own and register a motor vehicle on a Nebraska Indian reservation, is any Nebraska sales and use tax due?
Sales and use tax is due, but only on the non-Indian owner's share. Under Revenue Ruling 01-76-27, when a motor vehicle registered on a Nebraska Indian reservation is owned by a reservation Indian and…
Can an employer rent motel rooms for its employees free of Nebraska sales and use tax when it just pays a daily rate with no 30-day contract?
No. An employer that rents motel rooms for employee use at a daily rate, with no oral or written contract guaranteeing a minimum room rental for at least 30 days, must pay Nebraska sales and use tax o…
Did Nebraska's statutory deadline for tax-refund claims apply to reservation Indians?
Yes. A reservation Indian seeking a refund of erroneously paid state tax had to file within the period set by the applicable tax law. The Department or other taxing authority could not consider a clai…
How did Nebraska treat an Indian tribal council for state-tax purposes?
A tribal council received the same state-tax treatment as a reservation Indian when it consisted of reservation Indians and was chartered as the ruling body of a federally recognized American Indian t…
Who qualified as a reservation Indian for purposes of Nebraska's state-tax exemption?
A reservation Indian was a person who met Revenue Ruling 99-76-1's definition of an Indian and resided on a Nebraska Indian reservation as defined in Revenue Ruling 99-76-2. Both status and residence …
Who does Nebraska consider to be an 'Indian' for purposes of exemption from state taxation?
For purposes of exemption from Nebraska state taxation, an 'Indian' is a person of at least one-fourth Indian blood, or a person presently enrolled as a member of a recognized American Indian tribe. R…
Could a Nebraska water-pollution-control facility obtain a sales-and-use-tax refund for chemicals consumed in its operation?
No. The refund act covered approved materials and equipment incorporated into and becoming part of the pollution-control facility. Operating chemicals did not become part of the facility, so tax paid …
Was steam heat sold through a closed system subject to Nebraska sales and use tax?
No. When a utility piped steam through a customer's heating system and the condensed water returned to the utility, the transaction transferred heat rather than tangible personal property, and steam h…
How did Nebraska sales tax apply when a carpet dealer bought samples for display and later sold the obsolete samples?
The dealer owed sales or use tax on the samples' purchase cost because they were used to promote carpet sales, not bought for resale. If the dealer later sold obsolete samples at retail, it also had t…
What did Texas's 1975 bulletin require for non-street-legal motorcycles and motor-assisted bicycles?
Beginning September 1, 1975, the bulletin required non-street-legal motorcycles to be titled and subjected post-sale title applications to the historical motor vehicle tax. Previously owned units titl…
Did Kansas withdraw its earlier guidance about charging sales tax on debt-service-retirement charges on rural water district bills?
Yes. In this notice dated December 18, 1974, the Kansas Department of Revenue told Kansas rural water districts to disregard the Department's earlier notice of November 25, 1974, which had addressed a…
Did an unintentional 20-day overrun turn a planned 31-day Texas vehicle rental into a lease?
Not necessarily. The contract intended a 31-day rental, and the customer unintentionally returned the car 20 days late. Because historical article 6.01 focused on whether the intended rental period ex…
Who owed Texas use tax on out-of-state leased vehicles operated by a Texas carrier solely in interstate commerce?
The Texas resident lessee and operator owed the historical use tax, not the nonresident lessor holding legal title. The vehicles were bought outside Texas and brought into and used within Texas, and s…
Did Texas impose use tax when a Texas resident registered an out-of-state interstate vehicle that might never enter Texas?
Yes. The 1974 opinion treated a Texas registration application as prima facie evidence that the out-of-state vehicle would enter and use Texas highways, so use tax was due on original consideration. I…
Who remained liable when a vehicle seller collected tax from the buyer but failed to remit it to the county?
Both faced consequences. A seller that properly completed the joint affidavit and retained sale records ordinarily had no tax liability. But if it accepted the buyer's tax money and failed to remit it…
Are freight and transportation charges on a taxable sale delivered to a Kansas customer part of the taxable selling price?
Yes. Since July 1, 1971, both interstate and intrastate freight and transportation charges made in connection with the taxable sale of tangible personal property, for delivery to the ultimate user or …
Do growers of Christmas trees have to collect Kansas sales tax when they sell trees directly to consumers?
Yes. Producers of Christmas trees are liable for collecting Kansas retail sales tax on all trees sold directly to the final consumer. A common misinterpretation is that items produced and sold on the …
What sales must Kansas private and public clubs collect sales tax on — dues, bingo, admissions, concessions, food, and merchandise?
Kansas private and public clubs must collect and pay sales tax on: membership dues that entitle the member to use club facilities for recreation or entertainment (effective July 1, 1971); gross receip…
Does the Soldiers and Sailors Civil Relief Act exempt a serviceman from Kansas sales tax when titling a car in Kansas?
No. The Kansas Department of Revenue determined that the Soldiers and Sailors Civil Relief Act does not grant relief from Kansas sales tax on a serviceman's purchase of an automobile. A serviceman may…
How did Texas distinguish a portable building from a mobile home, and did removing trailer equipment change mobile-home tax?
A portable building was movable on skids or a frame but never equipped to operate as a trailer, so limited sales tax applied. A mobile home was built to move as a trailer and was subject to historical…
Does Kansas sales tax apply to a utility late-payment charge, and how do prompt-payment discounts affect the taxable amount?
Yes. Effective July 1, 1971, when a customer pays an additional amount for failing to pay within a prescribed period for a taxable sale of gas, water, electricity, or heat, Kansas sales tax applies to…
Did Texas credit motor vehicle sales tax paid to a city or other political subdivision of another state?
Yes. The division and Legal Section read the historical statute to require a deduction not only for motor vehicle sales tax paid to another state, but also for sales tax paid to a political subdivisio…
How did Texas move large mobile-home sales from limited sales tax to motor vehicle tax on July 1, 1971?
Effective July 1, 1971, mobile homes exceeding eight feet in width and 36 feet in length moved from historical limited sales tax to motor vehicle sales and use tax collected by the county assessor-col…
Was a vehicle still a gift when the recipient placed a new lien after receiving it, and what if the recipient assumed an old lien?
A bona fide gift stayed a gift when the recipient placed a new lien on the vehicle after ownership changed, so the historical $10 gift payment sufficed. If the recipient instead assumed an existing li…
How did Texas document and register a dealer vehicle loaned free to a public school driver-training program?
The dealer and school filed a joint affidavit stating that the vehicle was loaned free for an approved driver-training program and no other use. The school obtained an exempt plate, returned it for ca…
When does a Kansas school have to collect sales tax, and when are its own purchases exempt?
It depends on whether the school is selling to others or buying for itself. This Department memo tells Kansas schools to collect and report sales tax on sales to students of books, manuals, workbooks,…
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