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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What statewide per capita income figure does South Carolina list for tax incentive tests?
South Carolina lists $65,396 as its most recently available state per capita income figure in Information Letter 26-24, dated October 5, 2026. Several state tax incentives use state or county per…
What major South Carolina tax changes did the 2026 legislative session produce?
Act 110 changed individual income tax to two brackets for tax years after 2025, starting with federal adjusted gross income and a new state deduction. Other 2026 acts added a service-provider…
Can a South Carolina internet or communications provider recover sales tax paid on equipment and electricity?
Yes, if the provider and purchases qualify. Under Act 242, eligible internet access and communications providers may seek a refund of South Carolina state and local sales and use tax paid on…
Which Missouri auction sales and buyer's premiums did the Department say were taxable?
The auction company must collect state and local sales tax on items it bought from estates or storage units, consigned items, and buyer's premiums on taxable Missouri sales. The ruling excepted the…
Are transfers of video-game cosmetic items and paid online-software access taxable in Missouri?
No. Missouri treated the digital cosmetic items as intangible and the optional software access as a non-enumerated service. On these facts it required no marketplace-facilitator collection for the…
Is the full price of installed smoke detectors and a fire extinguisher taxable in Missouri?
Yes. The Department treated the detectors and extinguisher as tangible products and taxed the full price, including installation labor. It also said the installer was not the final consumer of these…
Could the company use a historical average of Illinois sales percentages to apportion gain from the sale of its business?
The Department could not grant this petition on the record submitted. It said the sale receipts may qualify for exclusion from both sides of the sales factor under the existing rule if the sale…
Does an Illinois craft grower pay medical cannabis cultivation tax when selling to a medical or dual licensed dispensary?
A craft grower pays the Cannabis Regulation and Tax Act cultivation tax on cannabis sold to a dual licensed dispensary. It is not licensed as a medical cultivator. Since July 1, 2026, the medical…
What changed in South Carolina individual income tax for tax years beginning after 2025?
Act 110 replaced three brackets with two, set 2026 rates of 1.99% and 5.21%, began the state calculation with federal AGI, replaced specified federal deductions with a new state deduction, capped…
Are AI-assisted reports delivered through an online dashboard taxable in Rhode Island?
Yes. Rhode Island classified the one-time report product as taxable vendor-hosted prewritten computer software because customers used the same online dashboard to submit questionnaire data and…
Are nicotine pouches sold to federal prisons in Illinois subject to Tobacco Products Tax, and what records must a distributor keep?
Sales to a federal prison that is a U.S. government entity are generally exempt from Illinois Tobacco Products Tax if documented as sales to the federal government. The letter also explains…
When will South Carolina waive a civil tax penalty, and how does a taxpayer request and appeal a waiver?
A complete waiver requires reasonable cause; a partial waiver may rest on significant mitigating factors. Waivers are discretionary, fact-specific, and apply to penalties rather than interest.…
Did 16 listed mobility, bathroom, and daily-living aids qualify for Missouri's durable-medical-equipment sales-tax exemption?
No. Missouri applied the federal Medicare definition in force on January 1, 1980, which listed iron lungs, oxygen tents, hospital beds, and wheelchairs. None of the 16 products fit those categories…
Were charges for furnishing electronic medical records on a CD subject to Missouri sales tax?
No. The true object was the medical records and the service of retrieving, reviewing, converting, and reproducing them. The CD was merely an incidental means of delivery, not the finished product…
What South Carolina tax interest rate applies from July through December 2026, and what rate is paid on eligible refunds?
The listed South Carolina tax interest rate is 7% from July 1 through December 31, 2026. Interest is compounded daily, except simple interest applies to underpayments of declaration of estimated…
When can Illinois Aircraft Use Tax apply to a homebuilt plane, and do taxes paid on its parts offset a later Aircraft Use Tax bill?
Illinois distinguishes tax on retail kit and parts purchases from Aircraft Use Tax on an aircraft acquired by gift, transfer, or non-retail purchase. A completed, FAA-certified homebuilt plane can…
Can California return money that FTB overcollected after the ordinary refund-claim deadline, and does the taxpayer receive interest?
Yes. FTB says an amount collected in excess because of its mechanical or clerical error is an overcollection, not a tax overpayment, so the refund-claim statute of limitations does not prevent its…
Does an Illinois indoor playground charge sales tax on open-play admission, party-room rental, snacks, drinks, or bundled party packages?
Generally, no tax applies to open-play access or a true party-room rental when no tangible personal property is transferred. Snacks and drinks sold separately are taxable. If incidental food is…
How can a federally exempt nonprofit show Illinois vendors that its purchases qualify for a tax exemption?
The organization may apply for an Illinois exemption certificate using Form STAX-1, explain its federal status, and present an approved E-number to vendors. The letter identifies federal-law…
Does temporary storage in Illinois exempt a seller's shipment of materials that will later go to an out-of-state jobsite?
Temporary storage can exempt Illinois Use Tax only when the same sale leaves the seller with no Retailers' Occupation Tax liability. The separate building-materials exemption applies to a registered…
Does a South Carolina Chapter 44 FILOT automatically terminate if the sponsor places no project assets in service by the three-year deadline?
No. SC Revenue Ruling #26-4 says a Chapter 44 fee-in-lieu-of-property-tax agreement does not automatically terminate merely because the sponsor has not placed project assets in service by the last…
Is a home rehabilitation equipment arrangement an Illinois taxable lease or a service, and can its equipment get the 1% medical appliance rate?
Illinois says the true object of each arrangement decides whether a leased device is a retail lease or part of a service. A qualifying medical appliance gets the 1% state rate, but general…
Are direct-to-consumer sales of drug-free adhesive nasal strips exempt from Florida sales tax because they support breathing or post-surgical recovery?
No exemption applied. Florida taxed the seller's drug-free nasal strips because they had no Rx label, were sold directly to consumers, were not shown to be on the DR-46NT nontaxable list, and were…
What interest rate will Nebraska apply to delinquent state taxes and special assessments during 2027 and 2028?
8% per year. Nebraska will apply 8% annual simple interest to delinquent state taxes and special assessments from January 1, 2027 through December 31, 2028. The same rate schedule applies to…
Can Illinois tax or withhold on disability payments to a former Illinois employee who now lives elsewhere?
Yes, disability payments based on prior Illinois employment can be Illinois-source compensation even after the employee moves away. The letter applies a presumption that pay for past service was…
May an Illinois gas station deduct federal gasoline taxes passed through in its fuel price from taxable gross receipts?
No. The Department says upstream federal gasoline taxes are business costs, not taxes legally imposed on consumers. Passing their cost into the retail price does not make them deductible from gross…
Are separately billed freight charges for a contractor's materials subject to Iowa sales tax?
No. Iowa held that this contractor's separately stated freight charges were not taxable because they did not represent the sales price of a taxable sale or service.
Do human tissue allografts and amniotic or placental wound-care products qualify for Illinois's reduced medical-appliance tax rate?
Possibly, but IDOR did not decide these products. A product qualifies for the reduced medical-appliance rate only if it directly substitutes for a malfunctioning, lost, or diminished body part;…
Did Illinois approve a publisher's proposed 2027 vehicle-tax explanation?
No. Illinois declined to approve the third-party publication and warned that its sales-tax explanation may need revision because a June 2026 law incorporated Use Tax Act exemptions into the Vehicle…
Could a corporation add 50% of its GILTI amount to the Illinois sales-factor denominator through alternative apportionment?
Not on the petition submitted. IDOR denied the request because the taxpayer merely asserted distortion from including 50% of GILTI in income without a corresponding factor. It did not provide the…
Does Illinois's tax on leases of tangible personal property apply to permanently anchored storage-container units rented on the owner's land?
Not if the rented units are real property or fixtures permanently attached to the land. Illinois's post-2024 lease tax applies to tangible personal property, not real property; IDOR listed room,…
What penalties does South Carolina use for alcoholic-beverage licensing violations beginning January 1, 2026?
SC Revenue Procedure #26-3 supplies the Department's penalty guidelines for administrative violations involving beer, wine, and alcoholic liquor beginning January 1, 2026. Some penalties are fixed…
Must an out-of-state wholesaler file an Illinois corporate income tax return when it only sells tangible goods to one Illinois reseller?
Possibly not, but IDOR would not make a binding nexus determination. On the stated facts, the wholesaler might be protected by Public Law 86-272 and therefore owe no Illinois income tax or return,…
Which purchases for Colorado marijuana manufacturing and cultivation qualify for sales or use tax exemptions?
The Department exempted qualifying manufacturing machinery, farm-marketed fertilizers and agricultural compounds, and certain irrigation equipment and fertilizer sprayers under the stated…
Does Iowa's manufacturing exemption cover ASIC hardware used to mine Bitcoin?
No. Iowa held that SITBIT's Bitcoin-mining operation was neither processing nor manufacturing: it produced intangible cryptocurrency rather than tangible personal property or prewritten computer…
Could a truck-and-trailer repair shop use Form RUT-7 to buy repair parts tax-free even though it was not a motor carrier?
Not on the record described. Illinois said Form RUT-7 was inapplicable to parts-supplier and repair-shop transactions using the first three serviceperson methods. Incorporated parts may instead be…
Are wound dressings, bandages, gauze, and skin-closure products bought by a Colorado healthcare provider exempt from sales tax?
Yes, if the products are intended to be furnished by a practitioner as part of professional services to patients. The exemption covered Rx-only antimicrobial dressings, nonmedicated dressings,…
Are prescribed wound dressings, medical solutions, and diagnostic test kits bought by Tennessee healthcare facilities exempt from sales and use tax?
The prescribed wound dressings and medical solutions described in this ruling are exempt, but the COVID-19 and RSV diagnostic kits are taxable. The Department said the dressings and irrigation,…
Are Illinois subscription charges for health-and-fitness content delivered through a free mobile app taxable as computer software?
The Department did not decide whether this provider's paid subscriptions or free apps are taxable. It stated that remote-only SaaS generally is not taxed, while an app supplied to access a…
Can I reopen a New Mexico tax assessment I already lost by protesting the state's later seizure notice or tax lien?
No — once an assessment has been protested, decided, and affirmed on appeal, you generally cannot relitigate it by protesting the collection steps that follow. William Gardner, representing himself,…
How does Florida tax an arm's-length property sale when the parties allocate the purchase price among real estate, tangible property, and intangible property?
Florida accepted the amount the parties agreed before closing to allocate to the real property as the deed's documentary-stamp-tax consideration. The tangible-property portion was exempt as an…
Did Iowa decide whether labor for egress windows, sump pumps, foundation-wall replacement, and foundation braces is subject to sales tax?
No. Iowa refused to decide the taxability of the four labor services because the petition lacked enough service details, specific legal provisions, and exemption information.
What South Carolina tax guidance is listed in the Department's advisory-opinion index through June 30, 2026?
SC Information Letter 26-18 is a research index, not a substantive tax ruling. It catalogs South Carolina Department of Revenue advisory opinions issued from 1987 through June 30, 2026 under…
How should taxpayers use South Carolina's advisory-opinion citator, and what legal changes does the citator not track?
Use the citator as a research aid to see which South Carolina advisory opinions the Department identifies as modified, obsolete, superseded, modifying, or superseding through June 30, 2026. Do not…
Can Virginia disallow both Schedule C business expenses and Schedule A itemized deductions on an audit, and uphold the resulting assessment, if the taxpayer never sends in records to support them?
Yes. Virginia starts its individual income tax computation from federal adjusted gross income (FAGI), and the Department has authority under Va. Code §§ 58.1-219 and 58.1-310 to examine and adjust…
When does a California resident beneficiary of a fully discretionary trust become noncontingent, and who owes California tax when income or corpus is distributed?
A resident beneficiary whose interest is subject to a trustee's sole and absolute discretion remains contingent until the trustee decides to distribute a specific amount. Current-year income or…
When is South Carolina's 2026 sales tax holiday, and which items are tax-free?
South Carolina's 2026 sales tax holiday runs from 12:01 a.m. Friday, August 7, 2026 through midnight Sunday, August 9, 2026. During that 72-hour window, eligible clothing and accessories, footwear,…
What South Carolina tax interest rate applies from July 1 through September 30, 2026, and what rate is paid on eligible refunds?
The listed rate for South Carolina tax underpayments and overpayments from July 1 through September 30, 2026 is 7%. Interest is compounded daily, except that simple interest applies to underpayments…
How does Illinois tax a cloud learning subscription, a free mobile access app, and separately emailed PDF guidebooks?
The Department says cloud-only SaaS generally is not taxed when no software is downloaded; a genuinely separate free app downloaded from out-of-state servers can avoid Use Tax; and electronic…
Is Kansas participating in the new federal tax credit for donations to scholarship granting organizations?
Yes. Kansas Notice 26-10 explains 2026 Senate Bill 361, by which the State of Kansas elects to participate in the new federal tax credit for individuals' contributions to scholarship granting…
Which Kansas income, privilege, and premium tax credits did 2026 Senate Bill 82 repeal?
Kansas Notice 26-09 explains 2026 Senate Bill 82, which deletes or repeals five income, privilege, and/or premium tax credits effective July 1, 2026. Section 2 amends K.S.A. 65-7107 to delete the…
Does Kansas give an income tax subtraction for portable benefit plan contributions for independent contractors?
Yes, beginning with tax years after December 31, 2026. Kansas Notice 26-08 explains 2026 House Bill 2602, which defines a "portable benefit plan" for independent contractors and amended K.S.A.…
Can Kansans deduct health care sharing ministry payments and shares on their state income tax?
Yes, beginning with tax years after December 31, 2026. Kansas Notice 26-07 explains 2026 Senate Bill 368 — enacted over the Governor's veto — which created the Health Care Sharing Ministries Tax…
Does Kansas offer an income tax credit for buying gun and ammunition storage?
Yes. For tax years 2026 through 2028, a Kansas resident individual can claim a credit against Kansas income tax equal to 25% of what they spend to buy lockable storage designed primarily for guns…
Does Kansas give employers a tax credit for childcare expenses?
Yes. Kansas has an income and privilege tax credit for employers that help pay for their employees' child care, and 2026 Senate Bill 82 expanded it (applies to tax years beginning on or after…
Does Kansas give fuel retailers a tax credit for selling higher ethanol blends?
Yes. A new Kansas income tax credit, created by 2026 Senate Bill 82 and added to K.S.A. 79-32,201 as subsection (h), lets a retail dealer claim $0.05 for each gallon of "higher ethanol blend" it…
Did Kansas extend its angel investor, Eisenhower Foundation, Cedar Crest, and aviation tax credits?
Kansas Notice 26-03 explains 2026 House Bill 2464, which extends four Kansas income tax credits. The angel investor credit (K.S.A. 74-8133) is extended through tax year 2031, and starting in tax…
My will leaves a farm in trust and charity gets it only if the trustees end the trust. Is it exempt?
No. The will left a Pennsylvania farm in trust to family trustees, who could terminate the trust but did not have to — and only if they did would trust assets go to charities they would themselves…
Does Colorado sales tax apply when a client pays for a photoshoot and online-gallery photo license, or when a third party buys a separate extended-use license?
Generally yes under the Department's analysis. Online-gallery photographs are taxable digital goods, a photoshoot charge can be included in the taxable price when the photos are expressly bargained…
Could oil, gearbox lubricant, and grease used in a tugboat qualify as exempt rolling-stock repair parts, and could earlier tax be refunded after a late Form RUT-7-A?
Potentially. Oil and grease generally qualify when they become physical components of watercraft that qualifies as rolling stock used by an interstate carrier for hire. The GIL did not decide the…
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