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 a national bank owe Virginia bank franchise tax merely because it operated a trust office in the Commonwealth?
No. The bank had no Virginia principal-office charter and its acquired trust office did not accept customer deposits. Virginia treated regular deposit-taking as necessary to conduct a banking business…
Does Nebraska sales and use tax apply to charges for website design, development, and hosting?
Website design, development, and hosting are generally not taxable in Nebraska -- the tax applies only if the finished website is handed to the customer on a physical storage medium. Revenue Ruling 01…
How could a partnership successor calculate and pass through a Capital Investment Tax Credit after combining the qualifying project with another program?
Florida allowed historical-cost allocation if pro forma project income reflected actual GAAP expenses. The partnership had to separately track all project items, apportion income, report the credit to…
Did an out-of-state company's controlled network of Florida distributors create corporate income-tax nexus?
Yes. The distributors acted as company representatives under extensive sales, sponsorship, marketing, intellectual-property, and noncompete controls. Their activities exceeded protected solicitation u…
Which city recreation-department user fees were taxable under Florida sales-tax rules?
Tax applied to mandatory rental attendants, most facility rentals, unstructured admissions and memberships, all marina slips and related rent, and tangible-property charges. Structured program fees an…
Was the state-funded Energy Star appliance rebate included in the retailer's taxable gross receipts?
Yes. Because the retailer received reimbursement for the point-of-sale markdown, the rebate remained part of taxable gross receipts. In the requester's $1,000 refrigerator example with a $150 rebate, …
What historical 2010 Illinois guidance did the Department give on sales-tax nexus, software, and digital downloads?
Historical only: the 2010 GIL said repetitive delivery and installation in Illinois created physical presence and Use Tax collection duties, while an out-of-state seller without sufficient nexus left …
Could a parent claim an Illinois dependent exemption for a child based only on paying child support?
Only if the parent was also allowed the exemption on the federal return. Illinois took the number of dependent exemptions from the taxpayer's federal return, so IDOR directed the parent to federal rul…
Is a SUNY college's mandatory $30 vehicle registration fee subject to NY sales tax when the same fee also grants on-campus parking privileges?
Yes. The college charges one $30 fee that covers both registering a vehicle and the privilege of parking it on campus. Although a SUNY college is an exempt governmental entity (Tax Law 1116(a)(1)), a …
Did checking an online box satisfy Illinois's purchaser-signature requirement for an electronic resale certificate?
No. A process that merely required the purchaser to click a box did not satisfy the signature requirement. A digital signature might be acceptable, and an electronic certificate otherwise had to conta…
Did Illinois tax wireless Internet access sold alone or bundled with voice, messaging, and other services?
Not conclusively. Based on the limited facts, the Department said some services might avoid Telecommunications Excise Tax if their charges were disaggregated and separately identified from taxable tel…
Who owed Illinois tax when a janitorial company used cleaning supplies while providing services?
The janitorial provider owed Use Tax on the cost price of cleaning supplies it consumed while performing the service, and it could not buy those supplies for resale. The customer generally owed no tax…
Did Illinois sales tax apply to retail goods sold by an individual or corporation even when the business reported no profit?
For sales tax, the Department said Retailers' Occupation Tax applied to persons selling tangible personal property at retail, and the statutory definition of persons included natural individuals and c…
Did Illinois sales tax apply when an online game seller delivered only downloadable or emailed PDF files?
No Retailers' Occupation Tax or Use Tax applied if the transaction transferred only electronically delivered information or data, with no canned software and no tangible personal property. But canned …
Were a campground's rentals of tepees or tents as sleeping accommodations subject to Illinois Hotel Operators' Occupation Tax?
Yes, under the Department's 2010 general guidance. It said Hotel Operators' Occupation Tax did not distinguish permanent from temporary structures and that renting tents or tepees as sleeping accommod…
Are a sandwich manufacturer's wholesale sales of sandwiches to convenience stores subject to New York sales tax?
No. The company manufactures sandwiches and sells them at wholesale to convenience stores in NY, NJ, and PA for off-premises resale; it provides no catering. Sandwiches are taxed under Tax Law 1105(d)…
Did a custom-sign fabricator owe sales tax or use tax when it sold or installed signs?
A sale without installation was a tangible-property sale: collect sales tax for Florida delivery and no fabricated-cost use tax. When the fabricator was responsible for installation, it owed use tax o…
Are retail sales of wood or corn used as a fuel source subject to Nebraska sales and use tax?
Wood or corn sold as fuel is exempt from Nebraska sales and use tax when more than 50% of it is used directly in a qualifying activity. Effective April 1, 2009, Revenue Ruling 01-10-1 applies Neb. Rev…
What annual cap applied to Virginia Land Preservation Income Tax Credits for calendar year 2010?
The historical 2010 cap was $106,845,000. Virginia began with the $100 million statutory annual limit and increased it by the percentage growth in the all-urban consumer price index for the 12 months …
Where did a partnership claim the Illinois subtraction for deductions disallowed under IRC Section 280C?
On Line 28 of Form IL-1065. IDOR issued this short corrective GIL because IT 10-0003-GIL had incorrectly directed partnerships to claim the subtraction modification for deductions disallowed under IRC…
Are website data-mining/warehousing reports and online advertising services subject to NY sales tax?
No -- neither is taxable. The data warehousing/mining reports relate exclusively to the client's own website and the vendor is barred from reselling them, so they qualify for the personal/individual e…
Is Pedialyte subject to NY sales tax?
No -- Pedialyte is exempt from sales tax under Tax Law 1115(a)(3) as a product consumed for the preservation of health. It is specifically formulated and sold for use (under a physician's supervision)…
When were licenses, services, and renewals for legal-management software subject to Florida sales tax?
Canned software on disks or through load-and-leave delivery was taxable; electronic-only delivery and documented customer-specific modification were not. Renewals followed the tax treatment of the ini…
How did Illinois source broadcasting-service receipts, and did the general services throwout rule apply?
The general services throwout rule did not apply to broadcasting-service receipts governed by Section 304(a)(3)(B-7). For viewer- or listener-paid broadcasts, recipients were the viewers or listeners …
Could a country club refund admissions tax on old initiation fees after giving existing members contingent purchase credits?
No. Tax was correctly fixed when each membership was sold, and the later credit depended on future purchases rather than refunding an unused admission. Discounted future purchases were taxed on their …
Did on-site product training and technical advice by an out-of-state manufacturer's employee create Florida corporate income-tax nexus?
Yes. The recurring in-person work served proper use, dealer goodwill, and future sales but did not facilitate requesting orders. It exceeded protected solicitation under Public Law 86-272 and was not …
Does a contractor owe NY tax on the waste portion of granite/marble/stone slabs used in a capital improvement?
Yes. A contractor's purchase of stone slabs to use in a capital improvement is a taxable retail purchase (sales tax if delivered in NY, use tax if bought outside and used here), and the tax is based o…
Do periodic distributions from an unfunded, nonqualified deferred compensation plan sponsored by a former employer qualify for New York's $20,000 pension and annuity income subtraction?
Yes. Because the unfunded plan's periodic payments are made after the recipient's separation from service and after he turned 59½, they constitute pension and annuity income eligible for the $20,000 s…
Did guaranteed hotel-room prepayments create use tax when a registered reseller could not sell every room?
No. Guaranteed payment and below-cost resale did not override resale treatment. Unsold rooms remained tax-free while held for resale, but any use inconsistent with resale would trigger use tax.
Did a registered dealer owe use tax on prepaid hotel rooms purchased for resale that remained unsold?
No. The dealer could buy rooms with a resale certificate and owed no tax merely because some remained unsold, as long as it continuously held them for resale and neither it nor its personnel used them…
Was an aircraft taxable when imported into Florida after more than six months of repair and restoration in California?
Yes. The buyer intended at purchase to base and use the aircraft in Florida, and claimed California treatment premised on use outside California. Repair time did not establish genuine California use.
Were commissions paid to independent truck-rental dealers taxable as payments for a license to use the dealers' real property?
No. The commissions rewarded rental performance and dealer services, not space. The truck company had no access, control, fixed area, or occupancy right at dealer locations.
Could the Whitehursts use their personal income tax refund to satisfy their LLC's late 2004 corporate tax and avoid penalty and interest?
No. The Whitehursts and their LLC were separate taxpayers under separate personal and corporate income tax statutes and account numbers. Their $1,937 personal refund could not automatically satisfy th…
Did equipment used by an Internet-service parent and subsidiary qualify for Virginia's ISP sales-tax exemption?
Yes. Virginia found the group supplied Internet access, email, and proprietary content developed and owned by the providers, including qualifying web-page or screen content for messaging, directories,…
Did Mekko Miller prove that his Pueblo legal-counsel wages were exempt because he worked and lived within Tesuque Pueblo in 2004 through 2006?
No. Miller proved that he was an enrolled Pueblo of Tesuque member and that his legal-counsel income derived wholly from Pueblo resources, satisfying two elements of the exemption. But he did not over…
Are free college textbooks/review copies sent to professors and critics exempt as promotional material, or is use tax due?
Use tax is due. Free books distributed in NY to authors, book critics, professors, awards committees, and exhibitors don't qualify for the printed-promotional-material exemption in Tax Law 1115(n)(4),…
What portions of ground-lease and master-lease rent for a hotel were subject to Florida sales tax?
Using guest-use square footage, 0.68% of ground-lease rent and 0.46% of master-lease rent were taxable. Guest rooms and principally guest common areas were exempt dwelling-unit space.
Were detention charges paid by truckers for keeping intermodal shipping containers beyond free time taxable rentals?
No. Truckers possessed and used the containers without taking title, but that alone did not create a taxable lease. The Uniform Intermodal Interchange and Facilities Access Agreement governed equipmen…
How does an estate or trust recompute the 2009 federal credit for prior year minimum tax to determine the Nebraska minimum tax credit on a 2009 fiduciary income tax return?
Estates and trusts recompute the federal prior-year minimum tax credit for Nebraska, then take 29.6% of it. Revenue Ruling 23-09-2 tells 2009 fiduciary filers to recalculate the federal credit for pri…
How does an estate or trust recompute the 2009 federal alternative minimum tax to determine the Nebraska minimum tax on a 2009 fiduciary income tax return?
Estates and trusts recompute the federal AMT using Nebraska's adjustments. Revenue Ruling 23-09-1 tells 2009 fiduciary filers to recalculate the alternative minimum tax from Federal Form 1041, Schedul…
Which preventive maintenance, repairs, and equipment replacements qualified for Florida's printing-machinery exemption?
Preventive and corrective work qualified if it kept eligible equipment operating without materially adding value or prolonging life. Integrated components could qualify when irreparable; stand-alone r…
Did Illinois approve a medical-practice software license and maintenance contract as exempt from Retailers' Occupation Tax?
No specific approval was issued. The Department declined the requested Private Letter Ruling and gave general rules: prewritten software was taxable unless a license met all five Section 130.1935(a)(1…
How did Virginia's 2010 bulletin apply the new military-spouse residency law to income and local property taxes?
The historical bulletin required the spouse and service member to share the same non-Virginia domicile; a spouse could not simply elect the member's state. Qualifying service income, including some lo…
How is the 2009 federal alternative minimum tax recomputed to determine the Nebraska minimum tax on a 2009 individual income tax return?
Recompute the federal AMT using Nebraska's adjustments. Revenue Ruling 22-09-1 -- a corrected ruling -- tells 2009 individual filers to recalculate the alternative minimum tax (AMT) from their federal…
Was a sale of LLC membership interests subject to Florida's conduit-entity documentary stamp tax when the LLC acquired its real property before July 1, 2009?
No. The LLC was not a conduit entity for the pre-July 1, 2009 property it retained, so selling all membership interests was not taxed under that rule. A new LLC receiving property later without full t…
Are the hourly fees customers pay to sit at a gaming center's computers and play video games subject to New York sales tax?
Yes. The hourly play fees are subject to sales tax under Tax Law § 1105(a). The video games are prewritten computer software, which § 1101(b)(6) deems to be tangible personal property, so charging cus…
How is the 2009 federal credit for prior year minimum tax recomputed to determine the Nebraska minimum tax credit on a 2009 individual income tax return?
Recompute the federal prior-year minimum tax credit for Nebraska, then take 29.6% of it. Revenue Ruling 22-09-2 tells 2009 individual filers to recalculate the federal credit for prior year minimum ta…
Did renting hearses, limousines, and flower cars (with a driver) to funeral homes stop being taxable once New York's June 2009 livery-transportation tax took effect?
They stay taxable. Renting hearses, limousines, and flower cars (with a driver) to funeral homes is a taxable rental of tangible personal property under Tax Law § 1105(a), not a transportation service…
Who collected Virginia sales tax when a catering platform took orders, arranged delivery, marked up meals, and received customer payments?
The platform vendor was the retail seller. It advertised menus, took and routed orders, arranged delivery, approved credit, collected customer payments, and added markup and service fees. It therefore…
How are South Carolina counties ranked for the job tax credit for 2010, and which counties qualify for the fee-in-lieu and tax moratorium (per SC IL #10-1)?
SC Information Letter #10-1 publishes South Carolina's county rankings for the job tax credit for 2010, together with the counties that qualify for a reduced minimum investment under the fee in lieu o…
Were free advertising messages printed on cash-register tape exempt from Florida use tax?
No. The tape was handed to shoppers with receipts, not mailed in envelopes; it was not exclusively advertising; and the company did not establish regular distributions containing ads from at least ten…
When may a South Carolina beer or wine wholesaler replace a retailer's damaged or outdated inventory without giving prohibited free product?
A wholesaler may replace beer or wine with an identical like product when damage occurred before or during delivery or was caused by the wholesaler's employee. Beer wholesalers also had limited outdat…
Could Virginia review a local mobile property assessment when the taxpayer appealed more than a year after the county's final determination?
No. The county issued its final determination on August 23, 2007, so the taxpayer had to appeal to the Tax Commissioner by November 21, 2007. He did not file until November 2008, after paying the 2003…
Did a retiree change his domicile from Virginia by maintaining a home, voter registration, and resident returns in another state?
No. The taxpayer had established Virginia domicile while working at a university and did not prove that he abandoned it after retirement. His other-state home, voter registration, and resident returns…
Did a mortgage refinancing qualify for Virginia's same-lender recordation-tax exemption after the original lender merged into the new lender?
Yes. The original mortgage lender had merged into the refinancing lender, so the successor became the same lender for the existing debt. Virginia recordation tax therefore applied only to the portion …
Did a notice of intent and incomplete protest preserve Virginia's 90-day deadline for appealing a sales-tax assessment?
No. The June 2, 2009 assessment required a complete administrative appeal by August 31. The taxpayer sent a notice of intent and an August protest without supporting documentation or statutory grounds…
Could a Virginia church appoint its construction contractor as purchasing agent so project materials used the church's sales-tax exemption?
No. Virginia's church exemption covered building materials only when the qualifying church installed them itself through staff or volunteers and did not contract for installation. Naming the contracto…
Was a nominal hotel fee for cancelling after a deadline subject to Virginia retail sales tax?
No. Additional charges connected with an actual room rental were taxable, but this customer cancelled, never paid the room price, and never obtained a right to possess the room. The nominal charge was…
Did a hotel buy guest toiletries for resale, and could it redact federal credit-card numbers to only the last four digits?
The hotel was the user and consumer of toilet paper, tissues, shampoo, and similar room amenities, so it had to pay tax when buying them even though guests paid tax on lodging. For federal-government …
Did a third-party yearbook ordering service collect Virginia sales tax when acting for public or nonprofit schools?
For public schools, no tax applied when the school gave the manufacturer Form ST-12; the third-party order service acted as the school's agent and could collect student payments without tax. A private…
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