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.
Is a service that automatically pulls, compiles, and reports a client's own internet-advertising performance data subject to New York sales tax?
No. The service is an information service, but it falls within the 'personal or individual' exclusion: each client receives reports built only from its own advertising data, not shared with or compile…
Does a building-supply retailer's lumber mill shop qualify for the industrial manufacturing exemption when milling is only 12-15% of the business?
No exemption. A business that sells building materials at retail and also runs a lumber mill shop making custom millwork asked whether its mill equipment qualifies for the industrial manufacturing exe…
Can a Virginia resident who works remotely from Virginia for an out-of-state employer claim a credit for tax paid to the employer's state?
Denied. A wife who moved to Virginia and worked remotely from her Virginia home for an employer based in another state reported that income to the other state and claimed a Virginia credit for the tax…
Can a corporation reduce late-payment penalty and interest by carrying back a later net operating loss, and is a two-year-late appeal timely?
Denied as untimely. A corporation filed its 2016 return but did not pay, so the Department assessed the tax plus a late-payment penalty and interest in November 2017. The company later carried a 2017 …
Can taxpayers reopen assessments after exhausting appeals, and do photographs prove the value of donated items for a charitable deduction?
Denied across the board. On reconsideration of P.D. 18-144, the Commissioner upheld every assessment. The 2010 year had already been decided in prior determinations and would not be revisited. The 201…
Could Virginia consolidate a parent with its subsidiary and attribute partnership sales to the parent without proving Virginia destination sales, nexus, or income distortion?
No, not on the audit record developed here. Although Va. Code § 58.1-446 allows equitable adjustments for arrangements that improperly reflect Virginia income, the auditor did not establish a rational…
What happens when a taxpayer supplies, on appeal, the audit documentation it could not produce during the audit itself?
Closed and referred back. The taxpayer's whole appeal turned on documentation it could not provide during the audit. Because it supplied that documentation on appeal, the Department referred it to the…
Is cloud-delivered software exempt from Virginia use tax, are out-of-state-shipped purchases exempt, and can a third-generation audit's compliance and amnesty penalties be waived?
Mixed, with relief. This government contractor's use tax audit was adjusted on several fronts. Software from two vendors was cloud-based software-as-a-service, so it was electronically delivered and e…
Which Virginia tax payments received an automatic interest waiver during the 2020 COVID-19 crisis, and what deadlines and exclusions applied?
Virginia automatically waived interest and penalties on certain 2019 individual, corporate, fiduciary, estimated, and composite income-tax payments if paid by June 1, 2020; extension filers generally …
How did Florida correct the final consolidated and first separate filing periods after an acquisition ended the taxpayer's old group?
Florida corrected its earlier ruling to require two short-period filings: a final consolidated return under the old election, followed by separate returns for the former parent and affiliates aligned …
Could a film company claim credits for a late 2015 application and a timely 2016 application supported by paid invoices but no matching canceled checks?
Only for 2016. Working Boy Productions' last 2015 qualified invoices were paid December 7, 2015, making December 7, 2016 the mandatory one-year application deadline. Its documented October 9, 2017 fil…
Did the COVID-19 national emergency automatically prevent Nebraska Advantage Act incentive recapture?
No. The March 13, 2020 national emergency was a qualifying trigger, but a project holder still had to prove that forces beyond its control directly caused the failure to maintain employment or investm…
What does Illinois General Information Letter ST 20-0008-GIL conclude about Manufacturing Machinery & Equipment?
Since July 1, 2019, Illinois' manufacturing machinery and equipment sales tax exemption also covers 'production related tangible personal property' -- consumable supplies like drill bits, tooling chem…
Are monthly charges for contractor-owned standby generators at Virginia grocery stores taxable equipment leases or exempt power services?
They were exempt service charges. The contractor owned, installed, monitored, maintained, fueled, and ultimately removed the generation systems; the grocery operator never possessed or could buy them …
Does a contractor's continuous work at a Virginia military facility create a definite place of business subjecting its service receipts to county BPOL tax?
Yes. Fourteen employees worked exclusively and continuously at the client's military facility for more than 30 consecutive days, creating a definite place of business under Va. Code § 58.1-3700.1 even…
When is a Virginia income-tax appeal timely and complete, and may a taxpayer appeal while the audit is still being completed?
A complete appeal must be filed within 90 days after the assessment is mailed. This taxpayer's appeal was postmarked more than 90 days after the June 6, 2019 assessments, and a letter saying only that…
If a manufacturer stores machinery and equipment in Georgia only temporarily before using it on projects outside Georgia, is that storage a taxable use in Georgia?
No. If the machinery and equipment qualify for Georgia's manufacturing exemption, storing it in Georgia is also exempt from sales and use tax -- even when the equipment is ultimately used on projects …
Which South Carolina COVID-19 tax deadlines were moved to July 15, 2020, and which other state taxes remained due June 1?
South Carolina moved covered income-tax, franchise-tax, and corporate-license-fee filings and payments originally due from April 1 through July 15, 2020 to July 15. The same date applied to estimated …
Can New Mexico residents both allocate Arkansas pass-through income outside New Mexico and claim a credit for Arkansas tax paid on that same income?
No. Dennis and Kerry Miller allocated their Arkansas LLC's billboard-rental income and real-estate capital gain to Arkansas on New Mexico Form PIT-B. That allocation reduced New Mexico tax by $5,314 b…
May a Virginia business appeal a city BPOL assessment directly to the Department before first obtaining the city's final determination?
No. An assessment created an appealable event, but the taxpayer still had to appeal to the city first. The city employee's same-day explanation of the assessments was not a final local determination, …
How did Virginia implement the July 1, 2020 cigarette-tax increase, including stamp limits, the floor tax, and transition deadlines?
Virginia's cigarette tax doubled on July 1, 2020 from 1.5 to 3 cents per cigarette -- from 30 to 60 cents for a pack of 20. These guidelines limited old-stamp purchases during April-June 2020, barred …
How could taxpayers check the status of South Carolina advisory opinions through March 31, 2020?
SC Information Letter #20-7 attaches the Department's citator for advisory opinions issued from 1987 through March 31, 2020. It identifies opinions the Department knew to be modified, modifying anothe…
Where can taxpayers find South Carolina Department of Revenue advisory opinions by tax topic through March 31, 2020?
Use the subject index attached to SC Information Letter #20-6. It organizes South Carolina Department of Revenue advisory opinions issued from 1987 through March 31, 2020 under administrative, alcohol…
Can a Virginia cigarette wholesaler defeat a sales-tax assessment with resale certificates and invoices obtained only after the audit began?
No. The wholesaler obtained two resale certificates only after the audit started, so they were not treated as accepted in good faith and required independent validation. Both customers' registrations …
Could two restaurants overturn estimated Virginia sales-tax assessments based on income returns and comparable businesses when they lacked verifiable sales records, and did first-audit penalties apply?
The estimated tax stood, but the compliance penalty was waived. Because the restaurants lacked adequate records and their reported figures were inconsistent or unverifiable, the auditor reasonably use…
When may a Virginia equipment distributor rely on cable-television and resale exemption certificates, and which purchases remain taxable?
Mixed. The distributor properly accepted a cable customer's Form ST-20 in good faith for equipment used to broadcast, amplify, transmit, or distribute cable signals, and properly accepted a facially v…
Must an out-of-state trucking company with Virginia routes file a Virginia corporate income tax return?
Yes. An out-of-state trucking company whose trucks pick up and deliver in Virginia has a positive Virginia apportionment factor (vehicle miles in Virginia), and Virginia treats that as creating income…
What happens when a Virginia taxpayer first supplies documents supporting a sales-tax refund claim during the administrative appeal?
The Department closed the appeal and referred the new documents to field audit staff to review the refund claim and revise it as appropriate. If issues remained after the refund audit revision, the ta…
How long does a Virginia taxpayer have to request reconsideration of a final Tax Commissioner determination?
Forty-five days under 23 VAC 10-20-165 F. The taxpayer asked on September 18, 2019 to reconsider P.D. 19-49, issued May 8, 2019, well after the deadline. Further review was barred, P.D. 19-49 remained…
What happens when a Virginia sales-tax taxpayer first provides supporting audit documentation during its administrative appeal?
The Department closed the appeal and sent the newly supplied documentation to field audit staff for review and any appropriate audit adjustments. If issues remained after the auditor revised the audit…
Can partners in a partnership divide up Illinois's River Edge Historic Preservation Credit however they agree, instead of strictly according to their partnership ownership percentages?
Yes, within limits. The Department ruled that under 35 ILCS 5/221(d), partners may allocate the River Edge Historic Preservation Credit pursuant to an executed agreement documenting an alternative dis…
If a partnership or LLC receives Illinois Historic Preservation Tax Credits, can the partners divide up those credits by agreement instead of strictly by their partnership interests?
Yes. The Illinois Department of Revenue ruled that under the Historic Preservation Tax Credit Act, a partnership (here, an investment fund structured as an LLC taxed as a partnership) may allocate its…
Did Kansas waive penalty and interest on first-quarter 2020 estimated tax payments?
Kansas Notice 20-02, prompted by the COVID-19 pandemic, explains that the Director of Taxation will waive any applicable penalty and interest for first-quarter 2020 estimated tax payments that were du…
Was a mobile concrete batch plant's per-yard mixing fee taxable for the requesting road contractor?
No. On the stated facts, the true object was a concrete-mixing service, so the mobile batch plant operator's per-cubic-yard fee was not subject to South Carolina sales tax. The road contractor bought,…
Who owed South Carolina sales tax on the requesting company's peer-to-peer vehicle rentals?
The requesting platform was the retailer responsible for remitting South Carolina sales tax on all of its peer-to-peer motor vehicle rentals of 30 days or less in the state. It qualified as a marketpl…
What Louisiana income-tax deadline and penalty relief did RR 20-002 provide during the 2020 COVID-19 emergency?
The ruling created temporary 2020 relief: a first- and second-quarter estimated-tax penalty safe harbor, timely treatment for specified late 2019 pass-through elections, and a 30-day extension for cer…
What does Nebraska accept as a valid signature on tax forms, and which forms still require a handwritten signature?
For most forms, any mark counts -- but three documents still need a handwritten signature. Revenue Ruling 99-20-1 says that, unless fraud is indicated, the Nebraska Department of Revenue (DOR) will ac…
How did SC IL #20-4 change South Carolina's COVID-19 tax deadlines, and did income tax and other taxes get the same date?
SC Information Letter #20-4 (March 23, 2020) restated and updated the COVID-19 relief in #20-3 by splitting the deadlines. Income tax: conforming to the IRS (Notice 2020-18), South Carolina moved 2019…
Did Kansas extend the 2019 tax filing and payment deadlines during COVID-19?
Kansas Notice 20-01, prompted by the COVID-19 pandemic, explains that the Director of Taxation extended several 2019 filing and payment deadlines. Homestead or property tax relief refund claims (norma…
Did South Carolina allow curbside sales of beer and wine during COVID-19, and under what conditions (per SC IL #20-5)?
Yes, temporarily. SC Information Letter #20-5 explains that Governor McMaster's Executive Order No. 2020-12 (effective March 21, 2020) temporarily suspended SC Regulation 7-702.5 — which otherwise bar…
Were multipacks of individually wrapped ice cream and frozen novelty items exempt when their combined weight exceeded 16 ounces?
No exemption. Florida treated each package as multiple units of individually wrapped ice cream or frozen novelties, which remain taxable whether sold separately or in multiple units. A combined packag…
Could a Florida consolidated group discontinue filing after substantial changes in business focus, growth, acquisitions, and international reach?
Yes. Florida found reasonable cause because the group's business focus had shifted and its size, acquisitions, research investment, international activity, and geographic footprint had changed substan…
Were free lodging and meals at a company-owned training facility subject to Florida sales, surtax, or tourist taxes?
Generally no, when the company bore the entire cost and charged nothing. Free accommodations for its partners, employees, and designated clients were not subject to sales, discretionary surtax, or tou…
Was a staffed autonomous-shuttle agreement a nontaxable transportation service or a taxable vehicle rental?
A nontaxable service to the customer. The provider retained ownership and control, supplied an attendant on every autonomous shuttle, and used those attendants to operate the vehicles if needed. The c…
Did a couple who moved abroad for work change their Virginia domicile, and did rent from their retained Virginia home remain taxable?
Yes, they changed domicile before 2015. Their initially temporary 2012 assignment became indefinite in 2014; they leased a foreign residence, obtained local driver's licenses, registered a vehicle, di…
How does Virginia treat a taxpayer who is a California actual resident but retains Virginia domicile, and where is the California tax credit claimed?
The taxpayer remained a Virginia domiciliary resident because her California employment began as temporary and she retained Virginia property, voter registration, vehicle registration, and a driver's …
Can a Virginia taxpayer challenge old nonfiler assessments and recent self-reported tax bills with a general statement that the amount owed is disputed?
No. An appeal postmarked September 12, 2019 was too late for assessments issued from 2009 through 2015, because Va. Code § 58.1-1821 allows 90 days. The Department had jurisdiction only over 2017-2018…
May Virginia individual owners claim fixed-date-conformity bonus-depreciation subtractions shown on their pass-through entities' VK-1 forms when no prior addition appears on their personal returns?
Yes on these facts. The couple accurately reported 2015-2016 FDC subtractions shown on asset reports and VK-1 forms from two pass-through entities for assets placed in service earlier with federal bon…
Could Virginia tax an individual as a domiciliary resident for 2016 after a prior ruling had already concluded she did not re-establish Virginia domicile until 2017?
No. P.D. 19-83 had already concluded in the taxpayer's 2015 case that she could not have re-established Virginia domicile until she returned to the United States and began residing in Virginia in 2017…
Did working in another state and spending fewer than 183 days in Virginia change a consultant's Virginia domicile when he stayed in a hotel and kept Virginia ties?
No. The husband may not have been an actual resident under the 183-day test, but he remained a Virginia domiciliary resident. His hotel in the work state was not a permanent or indefinite residence, a…
What COVID-19 filing and payment relief did South Carolina announce in SC IL #20-3, and until when?
Until June 1, 2020. SC Information Letter #20-3 (March 17, 2020) announced special COVID-19 filing and payment relief: returns and payments for taxes administered by the Department that are due betwee…
What records must Virginia taxpayers provide to substantiate charitable gifts, unreimbursed employee expenses, and Schedule C business deductions?
They must provide records sufficient to verify each deduction under the federal rules Virginia follows. This couple failed to substantiate charitable gifts, unreimbursed employee expenses, and expense…
How can a Texas hotel pass tourism public improvement district (TPID) assessment costs on to guests as a separately stated fee without triggering trust-tax liability under Section 111.016 — and is that fee subject to hotel occupancy tax?
A hotel can pass tourism public improvement district (TPID) assessment costs on to guests as a 'tourism public improvement district recovery fee' without triggering trust-tax liability under Section 1…
Could Virginia rely on federal W-2 data to add omitted wages to nonresident, part-year, and resident returns when the taxpayer offered no contrary evidence?
Yes. Wages are generally income under IRC § 61 and flow into Virginia taxable income. For 2015, Virginia could rely on the W-2 showing Virginia wages absent proof they were not Virginia-source compens…
Did Virginia's deduction for 'long-term health care insurance' also cover premiums for ordinary health insurance?
No. The phrase covered long-term care insurance for extended nursing-home or in-home care, not general medical insurance. Legislative history used 'long-term care insurance' and 'long-term health care…
Did a couple change domicile from Virginia during a two-year move when they initially stayed with a relative and retained Virginia property, licenses, and vehicles?
Yes. Although the move took two years and the couple retained Virginia ties during the transition, the evidence showed a continuing process of establishing domicile in the new state: living there, att…
When did South Carolina's casual excise tax apply to private sales of boats, boat motors, and airplanes under RR 20-1?
Under the law covered by RR 20-1, the purchaser in a private or other nonretailer sale paid casual excise tax when South Carolina issued title or proof of ownership and sales or use tax had not alread…
Was a mandatory student fee for parking access and campus shuttle service taxable, and could part be allocated to transportation?
Partly. Paying the mandatory fee gave each student a parking permit, creating a taxable license to use real property. Because the same fee also funded shuttle transportation, Florida accepted a reason…
Did maps, clothing lists, and phone-payment logs substantiate unreimbursed employee expenses for mileage, work clothes, laundry, phone, and internet?
No. The maps lacked exact addresses and conflicted with the employment record; the clothing list had no receipts and the contract imposed no uniform requirement; and the phone and internet logs did no…
How should Virginia taxpayers report claim-of-right income received in one year and repaid in a later year?
They should follow their federal IRC § 1341 treatment on the Virginia return for the repayment year, not revise the year the income was received. If a repayment over $3,000 qualifies, they may use the…
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.