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 much is Kansas cutting the state sales tax on food, and what food qualifies?
Kansas Notice 22-15 explains the phased reduction of the state sales and compensating use tax rate on food and food ingredients, enacted by 2022 House Bill 2106. The state rate, currently 6.5%, drops …
How much of a South Carolina manufacturer's property is exempt from property tax under the manufacturing partial exemption, who qualifies, and how is it claimed?
South Carolina exempts 42.8571% of the property tax VALUE of manufacturing property that is assessed at the 10.5% ratio under Code Section 12-43-220(a)(1), effective for property tax years beginning a…
If I work and spend nearly all year in Texas, am I still a New Mexico resident when I keep my New Mexico domicile ties?
Yes, on these facts. Joseph Casanova worked full time in Texas and estimated he spent no more than 10 days in New Mexico during 2018, but the Administrative Hearings Office held he remained a New Mexi…
Can a cigarette distributor avoid late-payment penalty and interest when internal communication and the TAP screen caused confusion?
Mostly no. Core-Mark's protest was denied because it missed the September 25, 2021 deadline for cigarette tax on a second August tax-stamp order. The hearing officer found negligence: internal procedu…
If I consign my artwork to a gallery and the gallery makes the sale, who owes New Mexico gross receipts tax — me or the gallery?
The artist owes it. The Administrative Hearings Office denied Dennis Champlin's protest. Champlin, a Santa Fe painter, consigned paintings to a Ruidoso gallery that sold them in 2018 and sent him 50% …
Does a utility company have to charge sales tax on utilities it sells to hotels, motels, and other transient accommodation establishments?
IT DEPENDS ON WHERE THE UTILITIES ARE USED: Applicant, a utility company, should NOT charge sales tax on utilities sold to hotels, motels, or other transient accommodation establishments when those ut…
Does a religious charity's thrift store have to charge Missouri sales tax on the new (non-donated) merchandise it buys and marks up for resale?
No -- Applicant's sales of purchased (non-donated) goods at its religious charity's thrift stores are NOT subject to Missouri sales tax. Even though about 30% of the thrift stores' sales are new goods…
Is a bundled all-inclusive sporting-event ticket (admission plus food and drink for one price) subject to Illinois Retailers' Occupation Tax, or only to local amusement tax?
It depends on proportion, not a fixed rule: if the food and drink bundled into a single ticket price are just incidental to the sporting event (the service), the transaction is treated as a sale of se…
Does South Carolina sales and use tax apply to a fuel surcharge a retailer charges when it delivers merchandise to the customer in its own vehicle?
Yes, when the sale is taxable. A fuel surcharge a retailer charges a customer for delivering merchandise in the retailer's OWN vehicle is includable in 'gross proceeds of sales' / 'sales price' and is…
What South Carolina income tax deductions can a retiree, a person 65 or older, or a military retiree claim on retirement and other income, and how do they interact?
South Carolina gives individuals three separate income tax deductions, and one person can qualify for more than one. (1) The 'general' retirement income deduction (§ 12-6-1170(A)) lets the original ow…
Are nicotine pouches, lozenges, toothpicks, and products made with synthetic nicotine subject to Louisiana tobacco excise tax?
Yes. Products made with tobacco-derived nicotine are made of tobacco, and products using nicotine from another source or synthetic nicotine are tobacco substitutes. The ruling therefore taxes all of t…
Can I still prove I abandoned my Virginia domicile if I kept my Virginia driver's license and vehicle registration the whole time I lived in another state?
Yes -- it's possible, though retaining a Virginia driver's license and vehicle registration usually works against you. Here, a taxpayer who moved to another state for an indefinite job, leased housing…
If I move out of Virginia but don't get a new driver's license, vehicle registration, or voter registration in my new state right away, has my domicile actually changed?
Not necessarily -- leasing a residence in a new state isn't enough by itself to establish a new domicile if you don't also get a driver's license, register vehicles, or register to vote there; a taxpa…
If I discover years later that I was entitled to a Virginia tax subtraction I never claimed, can I still get a refund by filing an amended return?
Only if you file within three years of the original return's due date -- a married couple who didn't realize until 2020 that they could subtract taxable Social Security income from their Virginia retu…
I excluded my 2020 unemployment benefits from my federal return under the American Rescue Plan Act -- can I also subtract them again on my Virginia return?
No -- you can't get both breaks on the same unemployment income. Virginia's income tax subtraction for unemployment benefits (Va. Code § 58.1-322.02(17)) only applies to unemployment compensation that…
If my spouse moved to Virginia to be with me but never really settled here before we both relocated together, can Virginia still tax a retirement distribution he received?
No -- federal law reserves the right to tax a retirement income distribution exclusively to the recipient's actual state of residence at the time of the distribution, so a husband who moved to Virgini…
How does Virginia calculate, collect, and distribute the sales and use tax revenue entitlement for a qualifying sports or entertainment project like the one in Virginia Beach?
Virginia confirmed that the Virginia Beach sports and entertainment district project qualifies for a sales and use tax revenue entitlement under Va. Code § 15.2-5933, and explained how it works: after…
What wage levels must Nebraska Advantage Rural Development Act and Microenterprise Tax Credit Act applications filed in 2023 meet?
For applications filed on or after January 1, 2023: the Nebraska Advantage Rural Development Act required wage level is $16.82 per hour (up from $16.03 in 2022), and the Nebraska Advantage Microenterp…
Which Kansas sales tax return should retailers use after the ST-16 was discontinued?
Kansas Notice 22-13 tells retailers that, effective January 1, 2023, the ST-16 Retailers' Sales Tax Return should no longer be used. The ST-16 was designed for retailers reporting sales in a single sa…
How did Kansas increase the historic preservation tax credit for smaller cities?
Kansas Notice 22-12 explains changes to the Kansas historic preservation tax credit made by 2022 House Bill 2237 (Section 24), which amended K.S.A. 79-32,211. The existing credit -- 25% of qualified e…
What is the Kansas commercial restoration and preservation tax credit for older buildings?
Kansas Notice 22-11 explains the Commercial Restoration and Preservation Credit under the Historic Kansas Act, created by 2022 House Bill 2237 (New Sections 13-14), for tax years beginning after Decem…
Could an affiliated group stop filing Florida consolidated corporate income tax returns after major changes in its business and operations?
Yes. Florida found the group's substantial growth, acquisitions, market expansion, and operational changes sufficient to permit deconsolidation, subject to four conditions.
When a serviceman buys a specimen-collection kit from an out-of-state, unregistered supplier and uses it (rather than transferring it to the customer) to provide a non-taxable service in Illinois, does the serviceman owe Illinois Use Tax on the kit?
Yes. When a serviceman purchases tangible personal property at retail from an unregistered, out-of-state supplier and uses or consumes that property in Illinois rather than transferring it to service …
Does a company that sells molded pulp packaging (like protective boxes and cartons) to businesses who use it to package and ship their own products for sale owe Illinois Retailers' Occupation Tax on those packaging sales?
No tax is owed on the container sale itself, if the purchaser gives the seller a Certificate of Resale. Under 86 Ill. Adm. Code 130.2070, sellers of containers, wrapping, and packing materials to purc…
Does an out-of-state company that leases printers and copiers to a Missouri customer, and occasionally hires Missouri independent contractors to maintain that equipment, have to collect Missouri use tax as a vendor?
YES. Applicant, an out-of-state company that leases printers and copiers to a Missouri client while retaining title, is liable for collecting Missouri use tax as a vendor under Section 144.635, RSMo. …
Does an out-of-state vendor that drop ships products directly from its manufacturer to Missouri customers have to collect and remit Missouri sales tax, even if it has no physical presence in the state and its sales are under $100,000?
NO exemption: Applicant is NOT exempt from collecting and remitting Missouri sales tax on its drop-shipped orders. Even though Applicant has no physical nexus in Missouri and its sales don't exceed $1…
Is a non-needle pain medication that chemically forces its active ingredient below the skin, administered in a physician's office, exempt from South Carolina sales and use tax as an 'injectable medication'?
Yes. A non-opioid pain medication ('X') that uses a matrix system to chemically FORCE its active ingredient below the surface of the skin into the dermis — administered by a physician or under a physi…
Where can taxpayers find South Carolina Department of Revenue advisory opinions by tax topic through September 30, 2022?
Use the subject index attached to SC Information Letter #22-21. It organizes South Carolina Department of Revenue advisory opinions issued from 1987 through September 30, 2022 under administrative, al…
How can taxpayers check whether a South Carolina Department of Revenue advisory opinion had been modified, superseded, or made obsolete through September 30, 2022?
Use the citator attached to SC Information Letter #22-20. It lists South Carolina Department of Revenue advisory opinions from 1987 through September 30, 2022 that the Department identifies as modifie…
What Kansas income tax credits are available for aviation and aerospace employers and employees?
Kansas Notice 22-10 explains new aviation and aerospace income tax credits created by 2022 House Bill 2239 (New Sections 10-15), beginning in tax year 2022. There are three credits. First (Section 11)…
Was a newspaper publisher's combined print-and-digital subscription charge taxable even though digital-only access was not?
Yes. The combined charge covered taxable printed newspapers and digital services in one sale, so the entire sales price was taxable. Digital-only subscriptions remained nontaxable.
New Mexico wrongly told me my out-of-state services were taxable, I overpaid gross receipts tax for years, and my refund claim started as amended returns and a letter — did I file it in time?
Partly yes. The Administrative Hearings Office granted William Watson's refund protest in part and denied it in part. Watson, a forensic-science consultant selling services to out-of-state customers, …
Which Florida aircraft repair and modification sales-tax exemptions applied to a registered Florida defense contractor?
The taxpayer qualified for the exemptions in Fla. Stat. Sec. 212.08(7)(ee) and (rr) for qualifying aircraft repair labor and replacement engines, parts, and equipment installed in Florida. It did not …
Are injectable medications and injectable biologics sold for use in a hospital or an independent surgery center exempt from South Carolina sales and use tax under Code Section 12-36-2120(80)?
No — not under that exemption. The sale of an injectable medication or injectable biologic for use in a hospital or an independent surgery center is NOT exempt under Code Section 12-36-2120(80), becau…
When a South Carolina retailer delivers products into a county or city that charges a local sales and use tax, which local tax does it collect and remit, and how is it reported?
By the delivery jurisdiction. Once a retailer has nexus with South Carolina (physical presence, or economic nexus from more than $100,000 of SC sales), it automatically has nexus with EVERY local juri…
How are South Carolina sales of boats, boat motors, and boat trailers taxed — alone or as a package, by a dealer or a private seller?
It depends on WHAT is sold, by WHOM, and (for trailers) HOW the trailer is used. Boats and boat motors are 'maximum tax' items: taxed at 5% but never more than $500, and exempt from local sales and us…
When does South Carolina's casual excise tax apply to a boat, boat motor, or airplane, and how much is it?
South Carolina's CASUAL EXCISE TAX is a 5% tax (capped at $500) on the fair-market value of a boat, boat motor, or airplane, due when a South Carolina title or other proof of ownership is issued — but…
If a South Carolina retailer adds a separate 'inflation fee,' 'convenience fee,' or 'non-cash adjustment fee' (credit-card surcharge) to a sale, does the sales tax apply to that fee?
Yes. A separately stated 'inflation fee,' 'convenience fee,' 'non-cash adjustment fee' (credit-card surcharge), or similar fee that a retailer charges as part of a retail sale of tangible personal pro…
Are invoices for a licensed software subscription's continued maintenance/access, and for additional software users, subject to Illinois Retailers' Occupation (sales) Tax?
It depends on the facts, which the Department could not resolve in a GIL. Generally, canned (prewritten) software is taxable, but a software license that meets all five criteria in 86 Ill. Adm. Code 1…
If I claim a refund of Colorado's conservation easement tax credit, is there a cap—and how does it work when a partnership or S corporation made the donation?
Only when a refund is claimed. Under § 39-22-522(5)(b)(III), C.R.S., if you claim any refund of the conservation easement credit, your refund plus the credit you use to offset income tax cannot exceed…
When a business sells a combined ticket for a dinner-and-entertainment event (like a murder mystery dinner), does it owe Illinois Retailers' Occupation Tax on the food, and does that change if the caterer already charged tax on the food it sold to the business?
Caterers and sellers of meals owe Illinois Retailers' Occupation Tax on their full gross receipts from food sales, with no deduction for service or overhead costs. If a business buys catered food and …
Are subscription compliance-monitoring services that match a customer's data against a proprietary database taxable in Tennessee, or are they nontaxable information and data processing services?
Not taxable. The Department ruled that a data company's four compliance-monitoring offerings — which take a customer's uploaded employee or vendor data, continuously compare it against the company's p…
If I forgot to attach a statement (or check the federal carryback-waiver box) electing to forgo my net operating loss carryback, can Virginia still let me carry the loss forward instead?
No -- if you didn't validly elect to forgo the carryback, Virginia will carry your net operating loss back to the earlier years first, the same as federal law requires, even if that uses up the loss b…
Did South Carolina extend tax deadlines because of Hurricane Ian, and until when?
Yes — South Carolina matched the IRS and postponed affected income tax deadlines to February 15, 2023. SC Information Letter #22-19 explains that after the IRS granted Hurricane Ian relief on October …
Who got South Carolina's one-time 2022 income tax rebate, how much was it, and what was the deadline to qualify?
Your 2021 South Carolina individual income tax liability, capped at $700. SC Information Letter #22-18 explains the one-time rebate created by the Comprehensive Tax Cut Act of 2022 (Act 228), funded b…
Were subscriptions for streamed online courses and paid direct messaging subject to Florida communications services tax?
The online learning platform was subject to Florida communications services tax because customers streamed or downloaded instructional videos, making the offering a statutory video service even though…
Can I appeal my county's tangible personal property tax assessment on my personal car to the Virginia Department of Taxation if I think the value is too high?
No -- the Virginia Department of Taxation has no jurisdiction to decide an appeal of a personal vehicle's tangible personal property tax value. Here, a taxpayer appealed a county's 2022 vehicle tax as…
Can I appeal my county's tangible personal property tax assessment on my personal car to the Virginia Department of Taxation if I think the value is too high?
No -- the Virginia Department of Taxation has no jurisdiction to decide an appeal of a personal vehicle's tangible personal property tax value. Here, taxpayers appealed a county's 2022 vehicle tax ass…
If a locality's tax office replies to my business tangible personal property tax dispute, but the letter isn't signed by the Commissioner of the Revenue (or their designee), can I appeal that response directly to the Virginia Department of Taxation?
No -- not yet. The Department of Taxation only has jurisdiction to decide a local business tax appeal (including business tangible personal property, or BTPP, tax) once the locality has issued a genui…
If I appeal a locality's refund decision under Va. Code § 58.1-3980, can I still bring the same dispute to the Virginia Department of Taxation instead of circuit court?
No -- which statute you use to appeal a locality's refund or assessment decision determines where your NEXT appeal goes, and you can't switch after the fact. Here, a processor appealed a city's partia…
What is the Kansas short line railroad tax credit for track maintenance?
Kansas Notice 22-05 explains a new short line railroad income tax credit created by 2022 House Bill 2239 (New Section 18), for tax years 2022 through 2031. An eligible taxpayer -- a Class II or Class …
When a vendor or caterer sells alcoholic beverages to a Colorado state university for an official function, is that sale exempt from sales tax under the government-purchase exemption?
Yes, if the government-purchase exemption applies. Sales of alcoholic beverages to a Colorado state institution of higher education for official functions are exempt from sales tax, because alcohol is…
Is a subscription rental-property advertising platform and app a taxable software product or a nontaxable advertising service in Tennessee?
Taxable. The Department ruled that a subscription online platform and mobile app that helps property managers create and manage rental-property advertising listings is taxable computer software — not …
How do solar net-metering credits and time-of-use periods affect Florida gross receipts tax on electric bills?
Gross receipts tax was based on the money the utility actually received after applying customer solar-generation credits. For time-of-use billing, peak, shoulder, and off-peak periods were netted toge…
How does Illinois tax motor vehicle sales with respect to trade-in credits, private-party (non-retail) sales, and sales to nonresidents from states without a reciprocal tax exemption?
Illinois lets retailers deduct the value of a like-kind trade-in from the taxable selling price of a motor vehicle, with no dollar cap (a $10,000 cap under P.A. 101-31 applied only from Jan. 1, 2020 t…
What is the new Kansas homestead property tax refund for seniors and disabled veterans?
Kansas Notice 22-09 explains a new homestead property tax refund program created by 2022 House Bill 2239 (New Section 17), effective for tax year 2022 and after. It refunds the amount by which a claim…
Did Kansas extend the Rural Opportunity Zone income tax credit and student loan program?
Kansas Notice 22-08 explains that 2022 House Bill 2239 (Sections 31 and 43) extended the Rural Opportunity Zone (ROZ) program. Section 31 amends K.S.A. 74-50,223 to extend the cutoff for an individual…
Can Kansas teachers get an income tax credit for buying classroom supplies?
Kansas Notice 22-07 explains a new income tax credit for teachers' purchases of school and classroom supplies, created by 2022 House Bill 2239 (New Section 16), effective for tax year 2022 and after. …
How did Kansas expand the employer child day care assistance tax credit?
Kansas Notice 22-06 explains changes to the employer child day care assistance tax credit made by 2022 House Bill 2237 (Section 23), which amended K.S.A. 79-32,190. Two changes are made. First, new su…
What is the Kansas COVID-19 Retail Storefront Property Tax Relief and who can claim it?
Kansas Notice 22-04 explains the COVID-19 Retail Storefront Property Tax Relief Act, created by 2022 House Bill 2136 (New Sections 1-13), which provides assistance to certain for-profit businesses imp…
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