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How can taxpayers check whether a South Carolina Department of Revenue advisory opinion had been modified, superseded, or made obsolete through September 30, 2024?
Use the citator attached to SC Information Letter #24-14. It lists South Carolina Department of Revenue advisory opinions from 1987 through September 30, 2024 that the Department identifies as modifie…
I'm a commissioned sales rep — do I owe New Mexico gross receipts tax on commissions from sales between manufacturers and retailers?
Yes, on this record. Thomas Richards, a commissioned rep connecting western-wear manufacturers with retailers, was assessed $33,309.03 in gross receipts tax, penalty, and interest for 2016-2019 after …
We provide cloud-based data-processing services that translate and relay medical lab test results to physician practices and patients (some of whom can also download free mobile apps), and we've recently crossed Illinois's $100,000 economic-nexus threshold -- do any of our fees trigger Illinois Retailers' Occupation Tax, Use Tax, Service Occupation Tax, Service Use Tax, or the Telecommunications Excise Tax, and do we have to register and collect?
No on all counts, on these specific facts. The Department ruled the company's Monthly Data Processing Fees and Initial Setup Fees are not taxable because the company acts as a "serviceman" providing t…
I install and service fire alarm and sprinkler systems and mistakenly charged my customers sales tax instead of paying use tax myself -- can I get credit for the sales tax I already collected and remitted, against the use tax the Department now says I owe?
A near-twin of this corpus's P.D. 24-111 -- same legal analysis, same one-time-credit relief, different contractor. A business that installs, maintains, and inspects fire alarms, sprinkler systems, fi…
My county overvalued my personal vehicle for tangible personal property tax -- can the state Department of Taxation review that assessment for me?
No -- the Department has no jurisdiction to review it at all, regardless of the merits. Two individual taxpayers appealed a county's assessment of tangible personal property tax on their personal vehi…
Does a new company owned by the same person as an existing affiliated business still qualify for a locality's new-business BPOL tax break?
Yes, if the new business's activities are substantially different from its affiliated businesses. A third-party retirement plan administrator and a public accounting firm, both newly formed and owned …
My city assessed excessive tangible personal property tax on my personal vehicle for 2024 -- can the state Department of Taxation review that?
No -- another light companion to this corpus's P.D. 24-96-0 and P.D. 24-92-0, reaching the identical jurisdictional dismissal, this time against a CITY rather than a county. A taxpayer appealed a city…
A county assessed business tangible personal property tax on my trucking company's vehicles, and I disagreed with the situs and the tax rate used -- I wrote asking the county to explain the assessment and then appealed to the state when they wouldn't budge, but why won't the state hear it?
The Department dismissed the appeal for lack of jurisdiction -- the taxpayer never actually filed a local appeal, only asked the county for information. An interstate trucking business was assessed co…
My county overvalued my personal vehicle and didn't properly notify me of the assessment -- can the state Department of Taxation review either problem?
No, on both counts -- this is a light companion to this corpus's P.D. 24-96-0, reaching the same jurisdictional dismissal for a single individual taxpayer. A taxpayer appealed a county's tangible pers…
I petitioned Illinois to use separate accounting instead of the standard apportionment formula, but I didn't file the petition until after my return was due -- can the Department still consider it?
No -- the Department denied this petition purely on timeliness grounds and never reached the merits of whether separate accounting was actually a fairer apportionment method. The taxpayer's petition f…
Can New Mexico deny an insurer a refund of unused Medical Insurance Pool credits based on an agency bulletin rather than the statute?
Yes — Molina won. Molina Healthcare of New Mexico, a health insurer, was entitled to refunds of its unused New Mexico Medical Insurance Pool (MIP) credits for premium tax years 2018 and 2019 — about $…
My county says our theme park's rides are taxable personal property because they can technically be removed, and denied our refund for over-reported disposed assets by calling our accounting errors 'willful' -- are they right?
A win for the taxpayer on both fronts. A themed amusement park challenged its county's denial of business tangible personal property (BTPP) tax refunds for 2017-2020 on two separate issues. FIRST, the…
I provide broadband internet service and the Department denied part of my sales tax refund on equipment purchases because I sell wholesale, not retail -- but a court case said that shouldn't matter. Does my refund get reconsidered?
Yes -- the case is being sent back for reconsideration under a changed legal standard, though not every issue went the taxpayer's way. A broadband internet provider sought a refund of sales and use ta…
My county's BPOL assessment didn't count my sales reps' home offices as business locations, denied my computer-equipment resale deduction because I sold through a government contractor instead of directly to the government, and refused my out-of-state deduction for states where I could have filed a return but chose not to -- can I fix any of this on appeal?
A mixed, multi-issue result -- a genuine win on procedure and a new doctrine opened on home offices, but losses on two deduction claims. A computer products and services business appealed county BPOL …
Is a subscription to a health/fitness coaching app (with SaaS-style content, trackers, and a downloadable app) subject to Illinois sales tax?
No, not on the facts this taxpayer described. The Department ruled that the subscription fees for the taxpayer's Member Services (personalized health content, coaching, and in-app trackers) and Person…
I manufacture personalized debit and credit cards and ship them directly to cardholders on a dealer's instructions, and the dealer gave me a resale certificate after the fact -- can I get a refund of the sales tax I already collected and remitted?
Mixed, sent back for further review rather than decided outright. A manufacturer of personalized debit and credit cards sold its products to a dealer, which directed the manufacturer to mail the finis…
My company ships products to third-party distributor warehouses that then reship them elsewhere -- for Illinois sales-factor purposes, do I source the sale to where I deliver the goods, or to wherever the distributor eventually sends them?
You source the sale to where delivery to the distributor's warehouse terminates, not to any later destination the distributor chooses. If the third-party distributor warehouse (or a new hub-style ware…
I fabricate and sell vinyl fencing and decking, but I also install it myself for customers -- how does Virginia decide whether I owe sales tax as a retailer or use tax as a contractor, and can I get credit for sales tax I mistakenly collected?
A dual-role fabricator of vinyl fencing, decking, pergolas, and screen porches was reclassified from retailer to real property contractor, because the primary purpose rule looks at where MOST of a fab…
I filed an appeal of old Virginia income tax assessments years late, claiming the 1099s the Department relied on were the result of fraud by the company that issued them -- can the Department still fix my assessments?
No relief on any front -- the appeal was years too late, no valid protective claim existed, and even on the merits the taxpayer had no proof. A Virginia resident was assessed individual income tax for…
I fabricate and sell vinyl fencing and decking, but I also install it myself for customers -- how does Virginia decide whether I owe sales tax as a retailer or use tax as a contractor?
A near-twin of this corpus's P.D. 24-87 -- same legal analysis, same audit period, same day, a different taxpayer. A fabricator of vinyl fencing, decking, pergolas, and screen porches that both sold f…
I filed my Qualified Equity and Subordinated Debt Investments Tax Credit application a couple weeks late because I thought the deadline was April 15 -- can the Department still grant the credit?
No -- the deadline is strict and doesn't bend for an honest mistake about the date. An individual invested in a qualified business venture during 2023 and applied for Virginia's Qualified Equity and S…
I invested in a qualified Virginia business but didn't get the required certification paperwork from the company in time -- can I still get the equity investment tax credit if I attach my documents to my income tax return instead of filing the separate credit application form?
No on both counts -- the deadline is strict, and attaching supporting paperwork to your income tax return doesn't substitute for filing the actual credit application. An individual invested in a quali…
I filed my Qualified Equity and Subordinated Debt Investments Tax Credit application a couple weeks late because I thought the deadline was April 15 -- can the Department still grant the credit?
No -- this is a byte-for-byte twin of this corpus's P.D. 24-84, same day, same outcome, a different taxpayer. An individual invested in a qualified Virginia business during 2023, filed Form EDC for th…
Does Illinois sales tax apply to on-premises enterprise software sold under a license agreement, and how does that differ from cloud-based (SaaS) software?
It depends on the license terms. Illinois generally taxes sales of "canned" (prewritten) computer software as tangible personal property, but a software license is exempt from Retailers' Occupation Ta…
Does Illinois sales tax, service occupation tax, or telecommunications excise tax apply to cloud-based practice-management software sold to healthcare providers?
The Department did not issue a yes/no ruling on this taxpayer's specific facts (that requires a binding Private Letter Ruling), but it confirmed the general framework: canned computer software is taxa…
Is equipment used to manufacture prototype products under a federal contract exempt from Illinois sales and use tax?
It depends on what happens to the finished product. Machinery and equipment used primarily to manufacture tangible personal property that will be sold or leased at wholesale or retail is exempt from I…
If an out-of-state vendor already charged sales tax on equipment shipped to Illinois, does the buyer still owe Illinois Use Tax on it?
Usually not in full. To prevent double taxation, Illinois gives a credit for tax already properly paid to another state on the same purchase: if that other-state tax was at a rate of 6.25% or greater,…
Does an online food-ordering app have to collect Missouri sales tax on restaurant orders, or does the restaurant handle it?
The Missouri restaurant itself, not the online ordering platform, is responsible for sales tax on orders from Missouri restaurants to Missouri diners -- but the platform, as a Marketplace Facilitator,…
Can a nonprofit fraternal order buy hotel rooms, meals, and printed programs tax-free for its annual meeting?
Yes. Because the organization is a recognized 501(c)(10) civic/fraternal organization and the hotel rooms, meals, and printing costs are paid directly by it for its annual and special meetings on char…
Does a sports complex owe sales tax on rental fees it charges teams to use the fields, on top of spectator admission?
Yes. Fees a baseball field complex charges to teams and organizations for practices, games, and events are taxable in the same way as spectator admission fees, because both are fees paid to a place of…
Can a contractor buy consumable supplies and rent equipment tax-free on a tax-exempt university construction project?
Split ruling: rented machinery and equipment like lifts and construction fencing stay fully taxable even on a tax-exempt university project, but true consumables that get used up on the job, like plyw…
Is a company's service of reviewing and approving or denying medical pre-authorization requests for an insurer, using proprietary software staffed by medical professionals, a taxable insurance, data processing, or information service in Texas?
No. Texas ruled that a company's service of reviewing medical pre-authorization requests for an insurer — deciding coverage using proprietary software plus licensed medical staff — is not taxable. It …
When a multinational company routes goods through a chain of intercompany sales inside a Texas bonded warehouse before a U.S. customer imports them, are those in-bond sales taxable, and does merely taking title to the goods there create Texas nexus for the out-of-state entities involved?
Split ruling. Texas held that the chain of sales occurring while goods sit in a Texas bonded warehouse are exempt from sales and use tax under the constitutional Imports and Exports Clause, because th…
The employee who handled my New Mexico taxes underreported and took my records — how much of the gross receipts tax assessment can I actually beat?
Partly. Lobo Tech, a New Mexico plumbing subcontractor, was assessed $64,973.13 in gross receipts tax, penalty, and interest for 2015-2018 after an employee underreported and then left with the compan…
How did Florida TAA 24A-012 treat concession fees paid for licenses to use real property?
The fees were taxable commercial-rental payments. Paying the tax directly to the associations satisfied the taxpayer's payment obligation, and adequate records of payment protected the taxpayer if an …
What South Carolina tax interest rate applies through December 31, 2024, and what rate is paid on eligible refunds?
The listed South Carolina interest rate for tax underpayments and overpayments is 8% for the period October 1, 2023 through December 31, 2024. Interest is compounded daily, except that simple interest…
If our out-of-state manufactured products are already sold to customers outside Illinois but pass through a third-party distribution center in Illinois for a few days to be consolidated onto other trucks, do those sales count as Illinois sales for our sales-factor apportionment?
No -- the Department ruled that a brief, functional stop at a third-party-operated Illinois distribution center, used only to consolidate and reroute already-sold shipments to their predetermined out-…
Is a service that disassembles, removes, and disposes of a company's used office furniture during a move or remodel subject to New York sales tax?
Yes. Disassembling, removing, and disposing of used office furniture from a New York building is taxable as maintaining/servicing real property under Tax Law § 1105(c)(5). Trash and garbage removal is…
If a Colorado manufacturer sells goods to the U.S. Government for delivery out of state but stores them in Colorado until the government is ready, are those sales sourced to Colorado for income tax apportionment?
No. The receipts are not Colorado receipts. Goods sold to the U.S. Government are sourced to where they're delivered or shipped to the purchaser — outside Colorado — regardless of f.o.b. point or othe…
My company paid royalties to an affiliate that were taxed in other states -- can I exclude the FULL amount from Virginia's intangible expense add-back, or only the portion that was actually apportioned and taxed there?
Only the portion actually apportioned to and taxed by another state -- not the full royalty amount, even if all of it was included in the affiliate's taxable income elsewhere. A corporation paid royal…
My auto repair shop charges customers separately for diagnostic testing before we fix their car -- is that diagnostic charge taxable if we also sell replacement parts in the same job?
Yes for this audit period -- a byte-for-byte twin of this corpus's P.D. 24-78, same audit period (July 2019-June 2022), same day, a different auto dealership with a repair shop. Diagnostic testing bil…
My auto repair shop charges customers separately for diagnostic testing before we fix their car -- is that diagnostic charge taxable if we also sell replacement parts in the same job?
Yes, for this audit period -- but a 2023 law change now exempts these charges going forward. An auto dealership's repair shop separately charged customers for diagnostic testing performed before repai…
I have exemption certificates from my customers, but they're either in a slightly different business name or dated after the sale -- can I still get my sales tax refund?
It depends on whether the Department can independently verify the customer actually qualified -- a name mismatch or a certificate dated after the sale doesn't automatically kill the exemption, but it …
Can a contractor expanding a municipal water-treatment plant buy the treatment piping exempt from Tennessee sales and use tax as industrial machinery?
Yes — the process piping is exempt. A municipal water utility that draws river water and treats it into drinking water sold to customers is a 'manufacturer' for Tennessee tax purposes (water is tangib…
Is installing a permanent gutter protection (gutter guard) system onto a house's existing gutters a tax-exempt capital improvement?
Yes. Installing a permanent gutter protection system onto existing gutters is a capital improvement and not subject to sales tax. It meets all three prongs of Tax Law § 1101(b)(9)(i): it prolongs the …
Are paid 'discount memberships' that let customers buy at a discount subject to New York sales tax, and what happens when an exempt organization buys one?
A paid membership that entitles the holder to buy goods or services at a discount is generally taxable, because it's treated as a prepayment for discounted property or services. But when the buyer is …
Is replacing a hot water hydronic coil and altering the ductwork in a heating system a tax-exempt capital improvement, or a taxable real-property repair?
Capital improvement — not taxable to the customer. Although replacing a heating-system coil is normally a taxable repair of real property, here the coil replacement required fabricating new ductwork a…
Are admission fees to an escape room or 'mystery room' interactive game subject to New York sales tax?
Yes. Charges to enter and use an escape room or mystery room to play an interactive game are taxable admissions to a place of amusement under Tax Law § 1105(f)(1). An employee playing a part in charac…
Does a pharmacy charge New York sales tax on human prescription drugs (like allergy medicine) that are dispensed for use on an animal?
It depends on the buyer and the animal. Human-use prescription medication dispensed for an animal is EXEMPT only when sold to a licensed veterinarian, or a farm-production-eligible person, for use on …
Does a 35-foot motor coach qualify for New York's sales-tax omnibus exemption if the operator holds a certificate of authority?
No. New York's omnibus exemption (Tax Law § 1115(a)(32)) requires the bus to weigh at least 26,000 pounds AND measure at least 40 feet long, and be used to transport persons for hire under a DOT/feder…
How did 2024 Senate Bill 410 change Kansas's SALT Parity Act for pass-through entities?
Kansas Notice 24-15 explains 2024 Senate Bill 410, which amended the Kansas SALT Parity Act (K.S.A. 79-32,284 through 79-32,289) effective for tax years beginning on or after January 1, 2022. The Act …
For a service delivered to a New York customer but invoiced to an out-of-state address, does New York sales tax follow the delivery location or the billing address?
The delivery location. New York sales tax is a destination tax: if a seller has nexus and delivers a taxable service in New York, it must collect tax at the combined State and local rate where deliver…
Can an individual subtract a CARES Act federal net operating loss carryback on the Kansas return?
Kansas Notice 24-17 explains 2024 Senate Bill 410 (Section 18), which amended K.S.A. 79-32,117 to add subsection (c)(xxix), a subtraction modification for individual taxpayers who carried back certain…
Does a New York jeweler have to charge sales tax on repairing, cleaning, resizing, or engraving customers' own jewelry and watches?
Yes. Receipts from repairing, cleaning, polishing, resizing, gemstone setting, battery and crystal replacement, and similar work on a customer's own jewelry or watch are taxable as servicing/repairing…
Are fees a website charges professionals to be listed in its online directory taxable as an information service, or are they exempt advertising?
Not taxable. Fees charged to representatives for listing their profile and contact information in an online directory are excluded from New York sales tax as advertising services, not a taxable inform…
Is propane delivered to a New York homeowner's tanks — for a detached garage, the house, and a back-up generator — exempt from sales tax if no business is run on the property?
Partly. Propane used for residential purposes — heating the home, heating a detached garage with no business activity, and running a back-up generator for the home — qualifies for New York's zero perc…
Is a powdered coffee-based beverage mix, sold unheated in grocery stores and online to be mixed with water at home, subject to New York sales tax?
Generally no. A coffee-based beverage mix sold unheated for off-premises consumption — in grocery stores or online — is exempt food and beverage under Tax Law § 1115(a)(1); it is not a soda, fountain …
If a New York marina buys floating cement docks and installs them with its own employees, is the purchase a tax-exempt capital improvement or taxable tangible personal property?
Taxable. Because the marina bought the floating cement docks uninstalled and installed them using its own employees, it purchased only tangible personal property — not a capital-improvement installati…
My facility uses chemicals along with certified pollution control equipment to treat wastewater -- are the chemicals themselves exempt from sales and use tax?
Yes, but only for the chemicals the taxpayer could show were actually certified as pollution control property -- and only because of that certification, not automatically. A paper mill with an on-site…
Can I subtract wages that federal law disallowed when I claimed a federal jobs credit on my Kansas return?
Kansas Notice 24-18 explains 2024 Senate Bill 410 (Section 18), which amended K.S.A. 79-32,117 to add a subtraction modification tied to federal jobs tax credits. When a taxpayer claims certain federa…
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.