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.
Are sales of title abstracts taxable in NY, at what rate, and what happens when a customer never pays?
Yes -- since September 1, 2010, an abstract of title is a taxable information service under Tax Law 1105(c)(1) (a Department policy change, TSB-M-10(7)S, to match the case law). The vendor must collec…
New York Advisory Opinion TSB-A-11(7)C: From what date does interest run on a corporate franchise tax and MTA surcharge refund based on amended returns?
Interest runs from the date the amended returns and refund claims were filed. Because the company met the section 211.3 reporting requirement (it filed amended New York returns within 90 days of the a…
Are a manufacturer's computers, vehicles, furniture, and other assets automatically excluded from Virginia local machinery-and-tools tax?
No. Classification depends on how each asset is actually used, where it is located, and whether the taxpayer documents transfers or disposals. Computers and software directly used in manufacturing can…
Was a national trust bank a bank under Virginia's Bank Franchise Tax Act even though its Virginia office did not accept deposits?
Yes. The Norfolk Circuit Court held that AMG fit the Bank Franchise Tax Act's specific definition of a bank as a national banking association doing business or having an office in Virginia. The court …
Were separately stated electric-utility charges for transformers subject to Florida sales tax or gross receipts tax?
Customer-side transformer lease charges were subject to sales tax, not gross receipts tax, when separately stated. Utility-side equipment used to deliver electricity generated gross-receipts-taxable f…
Were charges for resold wireless broadband Internet access exempt from Illinois telecommunications tax under the Internet Tax Freedom Act?
Not conclusively on the stated facts. ST 11-0028-GIL says telecommunications purchased, used, or sold by a provider to enable Internet access fell within the then-current federal tax moratorium. But n…
Did a business qualify for Illinois's enterprise-zone Gas Use Tax exemption merely by being located in a certified zone, without separate job-creation certification?
Yes, under the rule described. ST 11-0027-GIL says a business enterprise needed only to be located in an enterprise zone certified by the Department of Commerce and Economic Opportunity to claim the G…
Could a taxpayer reduce a Virginia assessment without filing the 2007 resident, part-year, or nonresident return needed to calculate liability?
Not on the existing record. The taxpayer admitted some Virginia-source income but had not filed a return or supplied enough information to determine residency and liability, so the assessment remained…
What Illinois tax and rate applied when a construction contractor bought materials from an out-of-state vendor for permanent incorporation into real estate?
The contractor was the end user and owed Illinois Use Tax on the materials' cost price. If an out-of-state supplier did not collect the tax, the contractor had to self-assess and pay the historical 6.…
Could a corporation allocate stock-sale gains outside Virginia apportionable income because the investee was not part of a unitary business?
No. Although Virginia agreed the corporation and investee were not unitary, the investment served an operational rather than passive function. The corporation licensed its technology for stock, suppli…
Could a city impose consumer utility tax when an affiliate bought natural gas and caused it to be delivered through pipelines it did not own?
Yes. Virginia treated the affiliate as a pipeline distribution company because it bought the gas and caused it to be transmitted by pipeline, even without owning or operating the pipeline. The 2001-20…
Is an auctioneer's separately stated administrative fee (buyer's premium) subject to Colorado sales tax, or is it a non-taxable service charge?
It's taxable. An auctioneer's administrative fee or buyer's premium — even when stated separately on the invoice — is included in the Colorado sales tax base, because the fee is generally not optional…
Could a Florida corporate parent stop filing consolidated income-tax returns after all subsidiaries merged into it or dissolved?
Yes. Florida granted permission because the four subsidiaries no longer existed and the parent was no longer part of an affiliated group. Future subsidiaries could reactivate or require a new consolid…
Can Virginia residents calculate the other-state tax credit before subtracting a historic-rehabilitation credit granted by that state?
No. Virginia limited the credit to the tax actually paid to the other state after that state applied its historic-rehabilitation credit. The residents could not use the higher pre-credit liability, be…
Did a federal-contract joint venture create a Virginia definite place of business merely by using a member's office address for nine months?
No. Virginia advised that merely sharing a member's Virginia office address did not create a definite place of business when the joint venture had no employees, property, phone, records, signage, adve…
Did a vehicle owner have to prove Illinois sales tax was paid on the old vehicle before using it as a trade-in?
No. ST 11-0025-GIL says the trade-in rules did not require the old vehicle to have been bought or taxed in Illinois, or even titled or registered in Illinois. The original purchase's taxation did not …
Who owed Illinois tax when an out-of-state facilities manager hired Illinois construction contractors and service providers for retail stores?
Construction contractors were end users of materials permanently incorporated into Illinois real estate and owed Use Tax on their cost. When subcontractors acted as construction contractors, the gener…
How did Illinois tax media postproduction, film or videotape duplication, and electronic transmission services?
Pure services without a transfer of tangible personal property were outside Retailers' Occupation, Use, Service Occupation, and Service Use Tax. When film, videotape, or other tangible media was trans…
How did Illinois tax equipment placed in a rental fleet, property bought for resale, and vehicles brought into Illinois?
For a true lease, the lessor generally was the end user and owed Use Tax on the equipment's cost price; Illinois imposed no sales tax on the rental receipts. A conditional sale was different, and all …
How did Illinois treat repair parts for material-handling equipment, dyed diesel used off highway, and an excavator leased for manufacturing work?
Repair or replacement parts incorporated into exempt manufacturing machinery could qualify when the machinery was used primarily—more than 50%—in manufacturing, but equipment used mainly before or aft…
How did Illinois tax a separately billed wireless phone-replacement program, replacement phones, and customer deductibles?
The Department said the described phone-replacement program appeared to be sold separately from the phone. A separately sold maintenance agreement was not itself a taxable transaction, and the custome…
Did unreimbursed loyalty-point and coupon discounts reduce Illinois taxable receipts for retail goods and wireless telecommunications?
Generally yes. ST 11-0019-GIL says an unreimbursed retailer discount reduced taxable gross receipts to the amount actually received. If a manufacturer, distributor, or other source reimbursed the disc…
How can taxpayers check whether an older South Carolina advisory opinion was modified or superseded (per SC IL #11-5)?
Use the citator attached to SC Information Letter #11-5. It helps you determine what effect newer South Carolina advisory opinions have on previously published ones — whether an opinion was modified, …
After moving away, would sellers owe Virginia tax on contingent payments from an S-corporation sale and installments from their Virginia home?
It depended on the federal character of each payment. Gain or interest from selling S-corporation stock as an intangible not used in a Virginia business generally would not be Virginia-source after th…
Did nonmedicated Breathe Right nasal strips qualify as medical appliances for Illinois's reduced tax rate?
Generally no. ST 11-0018-GIL says an Illinois medical appliance had to be intended by its manufacturer to directly substitute for a malfunctioning part of the human body. Products that simply improved…
Did an Illinois seller that drop-shipped air purifiers from Canada have to collect Illinois tax when it kept no inventory or storefront?
Unresolved. ST 11-0017-GIL says the Department did not make nexus determinations in PLRs or GILs because an auditor was better positioned to gather the necessary facts. It gave general 2011 rules for …
When may an Illinois contractor buy materials tax-free for work performed under a contract with an exempt organization?
Conditionally. ST 11-0016-GIL says an Illinois construction contractor normally is the end user and owes Use Tax on materials incorporated into real estate. The contractor may buy materials tax-free w…
Were subscription digital certificates and authentication services taxable as computer software in Illinois?
Generally no for the digital certificate, authentication, and resolution services themselves. ST 11-0015-GIL says a digital signature or identification was not computer software and electronically tra…
Did Illinois classify a trade-show company's service, lease, telecom, and catering revenue items as taxable or nontaxable?
Not item by item. ST 11-0014-GIL declined the requested taxable-or-nontaxable classifications and supplied general rules. Pure services without transferred tangible property were outside Service Occup…
Would Illinois approve a private handbook's description of tax exemptions for nonprofit and governmental organizations?
No. ST 11-0013-GIL says the Department does not approve the accuracy of private legal publications. Instead of validating the handbook excerpt, it directed the publisher to Illinois statutes, administ…
Did Illinois decide whether a satellite-TV installation company owed sales or use tax on equipment reimbursed by the service provider?
No. ST 11-0012-GIL says the Department could not determine the exact arrangement between the installation company and satellite service provider, so it gave no specific sales-tax, use-tax, or registra…
Did liquor filling change Illinois's 2011 State tax rate for a product that otherwise qualified as candy?
No. ST 11-0011-GIL says the law that moved candy to the 6.25% State general-merchandise rate did not distinguish between candy with liquor filling and candy without it. Under the definition quoted, a …
Were a restaurant tenant's permanently attached leasehold improvements real property rather than taxable business tangible personal property?
Yes. Concrete, masonry, doors, windows, plumbing, HVAC, electrical work, trim, and built-in furnishings were annexed and adapted to the premises, and the lease showed attached improvements became the …
Are scuba-tank compressed-air fill-ups taxable sales of tangible personal property in Virginia?
Yes. Virginia treated the measured, filtered, and compressed air placed into scuba tanks as tangible personal property and the compression process as fabrication. The customer's true object was the co…
Was Virginia's projected sales-and-use-tax audit sample valid when its error factor included deposit payments from outside the sample month?
No. The one-month sample's error factor included deposit payments made in earlier periods, so those transactions were not part of the sample population. Their inclusion invalidated the percentage of e…
Was a Virginia facility that assembled raw materials into prefabricated home components a manufacturer for local property-tax purposes?
Yes. The facility transformed wood, steel, insulation, concrete, and other raw materials into substantially different foundation walls, trusses, wall panels, and interior walls. Its manufacturing acti…
Could a retired partner subtract partnership payments reported federally as interest and capital gain from Illinois income?
No. IDOR said the Illinois subtraction for retirement payments to retired partners applied only to payments excluded from federal net earnings from self-employment under IRC Section 1402(a)(10) and Tr…
If my equipment lease requires me to reimburse the lessor for the personal property tax on the equipment, is that reimbursement subject to Colorado sales tax — even when it's billed separately?
Yes. When a lease requires the lessee to reimburse the lessor for the personal property tax on the leased equipment, that reimbursement is a taxable 'lease payment' and is included in the Colorado sal…
Is RBOB (reformulated gasoline blendstock for oxygenate blending) a 'motor fuel' subject to NY's excise, petroleum business, and prepaid sales taxes?
Yes. RBOB -- reformulated gasoline blendstock for oxygenate blending -- is a 'motor fuel' for purposes of the Article 12-A excise tax (and petroleum testing fee), the Article 13-A petroleum business t…
How could an Illinois resident avoid double tax if Iowa taxed Conservation Reserve Program payments from Iowa farmland?
Illinois taxed the resident's Conservation Reserve Program payments because residents allocated all base income to Illinois, regardless of whether the farmland was in Iowa or Georgia. Illinois could n…
Is a law firm's certified abstract of title (or certified continuation) a taxable information service in NY?
No -- it's not taxable. Although the sale of an ordinary abstract of title became a taxable information service on September 1, 2010, a 'guaranteed title search' is treated as an insurance product, no…
Is a certified abstract of title that guarantees the correctness of its search a taxable information service in NY?
No -- it's not taxable. The sale of an ordinary abstract of title became a taxable information service on September 1, 2010, but a 'guaranteed title search' is treated as an insurance product instead.…
Is Texas motor vehicle tax due when a taxicab owner adds the cab company to the title solely to satisfy an operating agreement?
No. Under the submitted Dual Title Agreement, the individual kept beneficial ownership and added the cab company only to satisfy operating and financial-responsibility requirements, with sole title re…
Which purchases and sales of a Virginia marketing firm qualified for advertising or out-of-state printed-material exemptions, and could it limit the audit?
Virginia removed only one purchase backed by an invoice showing shipment to Washington, D.C. It upheld tax on promotional crayons and stickers, administrative supplies, and printed materials lacking p…
Were Tindall's completed concrete prison cells taxable construction services or deductible property sold to New Mexico counties?
Mostly deductible. Tindall manufactured complete 25- to 30-ton concrete prison cells in Georgia and delivered them as single relocatable units requiring only placement, leveling, dowel rods, grout, an…
Which replacement fluids, tools, and machine parts qualified for Florida's industrial-machinery repair exemption?
Fluids incorporated into a machine's mechanical operation and replacements for original machine components qualified. Cutting or grinding fluids, quench oil, short-lived tools, wheels, brushes, and re…
Must a Colorado combined report include both financial-institution and non-financial affiliates, and how is the group's income calculated when the two use different apportionment rules?
Both, by subgroup. A Colorado combined report must include affiliated financial institutions and non-financial corporations that meet the three-of-six combination criteria in § 39-22-303(11)(a) — ther…
Did an independent truck driver owe city BPOL tax when he lived there but leased and drove his tractor for an out-of-state motor carrier?
Yes, he conducted a licensable business, and because he had no other definite place of business, Virginia treated his city residence as the business situs. The motor carrier's exemption did not automa…
When a qualified data center expands with new capital investment and new jobs, how does Tennessee's franchise and excise job tax credit treat positions temporarily filled by contract employees, multi-facility job counts, and prior-round jobs that shouldn't double-count?
An 8-part ruling on Tennessee's franchise and excise (F&E) job tax credit (Tenn. Code Ann. Section 67-4-2109(b)) as applied to a major data center expansion. Key holdings: the company qualifies for bo…
When a qualified data center makes a large new capital investment in Tennessee, what counts toward the 'required capital investment' for the enhanced industrial machinery franchise and excise tax credit, does custom software qualify, and how much of the company's F&E tax bill can the credit offset?
A 5-part ruling on Tennessee's enhanced industrial machinery franchise and excise (F&E) tax credit (Tenn. Code Ann. Section 67-4-2009(4)(I)), which scales from 3% to 10% of qualifying purchase price d…
When a company operating a Tennessee qualified data center expands its facilities with a new round of investment, does it qualify again for the headquarters-facility sales/use tax credit, and can it keep using its existing industrial machinery exemption certificate for the expansion?
Yes to all four questions, assuming statutory requirements are met. The Department ruled that the Taxpayer's planned facility expansion will be treated as a new 'qualified headquarters facility' under…
Was a jockey agent's percentage of her clients' race purses exempt from gross receipts tax as jockey or horseman income?
No. Baldwin performed taxable services by marketing jockeys, securing mounts, negotiating purse percentages, and handling client administration. Section 7-9-40 exempted race-purse receipts of horsemen…
Must a Virginia circuit-court clerk use assessed value for deed recordation tax when an appraisal and consideration indicate a lower market value?
No. Assessed value carried a strong presumption, but the clerk could rely on clear and cogent appraisal or other reliable evidence showing it did not reflect fair market value on the transaction date.…
Did a used-car dealer owe use tax on cutoff devices installed in financed cars before transferring the devices to a sister company?
Yes. The customer contract said the device remained dealership or assignee property, and the dealer controlled and maintained it as a delinquency deterrent. Installing the device was a taxable use bef…
Did a married couple prove their interest, dividends, and pension income was exempt because the tribal-member spouse lived on a reservation?
No. Although the wife was a tribal member and the couple lived on the reservation, Virginia found no evidence that the disputed interest or dividends came from reservation pursuits or that the pension…
Did a tribal member prove that interest, dividends, and pension income were exempt because he lived on an Indian reservation?
No. Virginia said reservation residence alone did not exempt the disputed income. The taxpayer did not show that the interest or dividends came from reservation-based institutions or pursuits, or that…
Could Loranger deduct resold installation services when the buyer supplied the correct NTTC only a few days after the 60-day deadline?
No. Loranger obtained timely valid NTTCs for all 2005 receipts and part of 2006, so those assessments were abated. But for the remaining resold installation services, the buyer first supplied the wron…
New York Advisory Opinion TSB-A-11(6)C: Are receipts from selling a company's entire inventory as part of selling its whole business and ceasing operations included in the Article 9-A receipts factor?
No. Receipts from a one-time sale of the company's entire inventory as part of selling its whole business -- after which it only wound down and distributed to shareholders -- are not business receipts…
Did a registered-agent service avoid Illinois income-tax nexus when it had no employees or owned property in Illinois?
IDOR did not make a definitive nexus determination because nexus was fact-specific. It said the service's paid arrangement—providing an Illinois address and using a local law firm to receive and trans…
How did Illinois treat forklifts held for sale but temporarily rented or demonstrated before resale?
The Department did not decide the audited forklift distributor's specific transactions. It explained that a true-lease lessor was generally the end user and owed Use Tax on cost while rental receipts …
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.