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.
Did Georgia require an air carrier to pay state sales and use tax on jet fuel after the temporary statutory exemption ended June 30, 2019?
No state sales or use tax was to be collected under the law analyzed in this 2019 ruling. Although retail jet-fuel sales became taxable again on July 1, 2019 after a temporary exemption ended, the Gen…
If a disregarded telecommunications LLC is owned by a corporation in a combined Virginia filing group, is its minimum tax compared with its own hypothetical tax or the group's combined liability?
The group's combined liability controls. Although the telecommunications company was a disregarded single-member LLC, its corporate owner belonged to an affiliated group that elected combined Virginia…
Can a corporation amend its Virginia sales factor and claim a refund without also amending the related federal return when taxable income did not change?
Yes, potentially. The Department held that failing to amend the related federal return did not prevent Virginia from accepting the amended 2013 return because the taxpayer said the pass-through entity…
Were mandatory homeowners' association assessments for maintaining common recreational facilities taxable admissions?
No, if the rule's conditions were met. The assessment had to be paid directly to the homeowners' association as a condition of property ownership and used to maintain association-owned common recreati…
Did a kayak operator's reimbursement of deputy costs under a recreational-facility agreement use a different tax rate from its base rent?
No different rate applied. The deputy enforced river-navigation rules essential to the operator's exclusive recreational-facility rights, so the reimbursement was part of the consideration for using t…
Who qualified for Nebraska's temporary 2019 penalty-and-interest waiver for remote-seller sales-tax noncompliance?
Remote sellers and multivendor marketplace platforms without pre-April 2019 Nebraska presence could qualify by registering, remitting all tax due since April 1, 2019, and filing penalty and interest a…
Were an enrolled Navajo Nation member's 2012 tribal-government wages exempt from New Mexico income tax when she worked and lived on Navajo lands during the workweek but also maintained an Albuquerque home?
Yes. Jennifer Skeet was an enrolled Navajo Nation member, earned her sole 2012 income working for the Navajo Nation on tribal lands, rented and lived in a Fort Defiance home on Navajo trust land durin…
Could a headquarters Capital Investment Tax Credit project use its share of new jobs to allocate Florida income to the project?
Yes. Each year, the taxpayer would divide cumulative new-to-Florida project jobs by total headquarters jobs, including the baseline and project jobs. That percentage would be multiplied by post-apport…
How does Georgia sales tax apply to one-price subscription packages containing both taxable and nontaxable technology products and services?
A fixed, preselected package of distinct products sold for one non-itemized price is a bundled transaction even if an item is sold only in the package or no discount is offered. A customer-selected pa…
Does Illinois Private Vehicle Use Tax apply when a nominee trust holding a motor vehicle is terminated and the vehicle passes to the trust's beneficiary?
Yes. When a nominee trust holding a motor vehicle terminates and the vehicle's ownership passes to the trust's beneficiary, Illinois treats that as a taxable 'transfer,' and the beneficiary owes the P…
Could affiliated companies use a pro forma consolidated project return and allocate a Capital Investment Tax Credit among separate Florida returns?
Yes. The group could compute project income on a pro forma consolidated basis, apply a project-specific factor with Florida property and payroll, and determine the annual credit. The available credit …
Could UPS replace New Mexico's mileage-based trucking sales-factor formula with its state-to-state package-volume method because the regulatory formula grossly distorted its in-state business activity?
Yes. UPS proved by clear and cogent evidence that New Mexico's special mileage-based trucking formula grossly overstated its in-state sales and violated external consistency. Its state-to-state volume…
How did Florida tax a 99-year ground lease with an upfront payment, automatic renewal, and a $1 purchase option?
Documentary stamp tax applied to the upfront payment because the document transferred a long-term interest in Florida real property for measurable consideration. But rental sales tax did not apply: au…
Could three New Mexico RV-storage facilities deduct receipts from assigned open-air and overhead-covered parking spaces as leases of real property?
No, but the penalties were abated. Even though customers received assigned spaces under month-to-month contracts and had round-the-clock gated access, the open-air and overhead-covered spaces lacked p…
Which charges of a Georgia document-storage and information-management company are taxable, including boxes, paper records, cloud services, storage, and delivery?
Only the company's sales of boxes, cases, and packaging materials and its physically delivered record copies were taxable. Its physical storage, electronic delivery and cloud products, pickup and deli…
Does a Georgia multi-level marketer owe sales tax on hemp-extract dietary supplements and topical balms, and on the fees distributors pay to enroll and renew their status?
Yes for the products, no for the fees. Georgia has no sales-tax exemption for dietary supplements, so an MLM's hemp-extract oils and powder (labeled with a 'Supplement Facts' box) and its topical hemp…
Is specialized modular farm equipment (and its software, installation, and warranties) subject to Tennessee sales tax when sold and installed for a farmer?
Four answers for a portable, modular farming-equipment 'System' sold and installed by dealers. (1) The equipment is TANGIBLE PERSONAL PROPERTY, not an improvement to real property — it's standardized,…
How is a monthly car-subscription service taxed in Tennessee — is the whole fee a taxable motor-vehicle lease, and does the 3% rental car tax apply?
Two answers. First, the car-subscription service is a taxable lease of a motor vehicle, and ALL of its fees — the one-time activation fee, the monthly subscription fee, hold (suspension) fees, late fe…
Could two UNM sports-marketing affiliates reduce their New Mexico tax assessments for trademark sublicenses, national radio advertising, bad debts, or a supposedly mailed pass-through payment?
No. Lobo Sports Properties and Iceberg Ventures did not prove that sponsorship receipts came from sublicensing UNM trademarks, reliably identify qualifying national radio-advertising receipts, or docu…
Does an aircraft purchased in Illinois and leased to a foreign commercial airline that flies only between Illinois and a foreign country (never touching another U.S. state) qualify for Illinois's rolling stock sales/use tax exemption?
Yes -- the Department agreed that flights in foreign commerce (Illinois to a foreign country) count as flights in "interstate commerce" for purposes of the rolling stock exemption, so routes limited t…
Can I appeal a county's business tangible personal property tax assessment directly to the Virginia Department of Taxation without first appealing to the county?
No. The Department lacked jurisdiction because the taxpayer appealed the county's 2018 vehicle assessment directly to the state without first filing a local administrative appeal. A BTPP taxpayer must…
Did a worker domiciled in another state become a Virginia resident by keeping a Virginia home for at least 183 days, and could he claim credit for tax paid elsewhere?
Yes. Although the worker remained domiciled in another state, he maintained a Virginia place of abode for at least 183 days in 2015 and was therefore a Virginia actual resident subject to tax on his i…
Was a military spouse a Virginia resident in 2014, and could she avoid the assessment because Department live-chat advice told her not to file?
Yes on residency, but the assessment had to be abated. The taxpayer's Virginia license, vehicle registrations, long-term Virginia home, prior resident return, and weak evidence of a continuing domicil…
How did Virginia resolve a corporate audit involving an ineffective NOL carryback waiver, fixed-date conformity, and disputed property, payroll, and sales factors?
It was a mixed result. The Department upheld its NOL carryback and carryforward adjustments because the corporation had not attached the required statement electing to forgo the two-year carryback, an…
Was a Virginia cable, internet, and telephone provider entitled to a sales-and-use-tax refund for thousands of equipment purchases without item-specific proof of exempt use?
No. Cable-television and internet amplification, transmission, and distribution equipment could qualify for Virginia's exemption, but telephone-service equipment did not qualify after the public-servi…
Are easy-return-label fees, logo setup and embroidery, combined shipping-and-handling charges, and a resale sale taxable in Virginia?
Mostly yes. Easy-return-label fees were taxable because they paid for purchaser-to-seller return delivery, not exempt seller-to-purchaser transportation, and remained tied to the original merchandise …
Can a corporation treat income from its 17% interest in an operating LLC as a passive investment, exclude the LLC's factors, and allocate the income outside Virginia?
No. The Department held that the corporation had to include the retail LLC's income or loss and its appropriate property, payroll, and sales factors in the corporation's Virginia apportionment calcula…
Can a city split ownership of a qualified hotel project — city owns the convention center, a local government corporation owns the hotel — and still qualify for the Chapter 351 tax rebate, and what exactly does a city need to submit to actually collect the rebate?
Yes. A city's convention center hotel project qualified for the Chapter 351 tax rebate even though the new convention center is owned directly by the city while the adjoining hotel is owned by a city-…
Does a mid-size city's downtown hotel-and-convention-center project qualify for the Chapter 351 'qualified project' rebate program, and how do ownership, financing, leasing, and the 10-year entitlement work?
Yes — the Comptroller answered nineteen questions and confirmed the project qualifies. A city of 110,000–135,000 spread across two counties each under 135,000 is an eligible municipality under Section…
Could Virginia assess the bank's 2013 franchise tax late, include minority interests in 2014 capital, and deny subsidiary-surplus deductions and credit carryovers?
No, not as audited. The Department held the 2013 bank franchise tax assessment untimely. For 2014, it reversed the addition of noncontrolling minority interests because those interests were not among …
Did Kansas give corporate filers penalty relief for 2018 income tax returns?
Kansas Notice 19-05 explains that the Department gave late-filing penalty relief for 2018 corporate income tax returns. The extended Kansas due date of October 15, 2019 matched the federal return; to …
Does the July 1, 2019 expansion of Illinois's manufacturing machinery and equipment exemption cover propane fuel for forklifts, earplugs, protective gloves, quality-control gloves, and nitrogen used in a steel stamping press die?
The Department did NOT individually confirm or deny each of the taxpayer's five specific items. Instead, it restated the general July 1, 2019 rule -- production-related tangible personal property is e…
Did a contractor's previously denied real-estate construction contracts appear eligible for Virginia's refund of the 0.3% state sales-tax increase that took effect July 1, 2013?
Potentially yes. The Commissioner found that the contracts submitted on appeal appeared dated before April 3, 2013 and bona fide, so the auditor had to review the contracts and invoices. Refund eligib…
Could a corporation obtain Department review of 2015, 2016, and 2018 county business-personal-property assessments after filing its local appeal in November 2018 and adding new software and equipment issues?
Only partly. The 2015 and 2016 local appeals were filed after their one-year deadlines, so the Department lacked jurisdiction over those years. The 2018 appeal was timely, but because the taxpayer rai…
How must a Virginia locality calculate the BPOL out-of-state deduction when a multistate service business first situses contract receipts among offices using direct labor?
First situs each contract's receipts to a definite place of business using direct labor. Then, from receipts assigned to the Virginia locality, deduct specifically identifiable amounts attributable to…
Could a Florida consolidated group deconsolidate after major shifts in business strategy, composition, growth, acquisitions, and divestitures?
Yes. Florida found reasonable cause because the group's business focus, external reporting, membership, acquisitions, divestitures, growth, and geographic footprint had changed substantially since the…
Was manufacturing machinery subject to a Virginia city's machinery and tools tax merely because it was on site on tax day, even though it was not yet operational or producing goods?
No. The Department's advisory opinion said the machinery was not yet being used in manufacturing while it remained nonoperational and produced no products. Until it became operational in the manufactu…
Does a Georgia electric-vehicle charging-station operator collect sales tax when it bills drivers by charging time or by kilowatt-hour?
Time-based EV charging was not a taxable retail sale of electricity, so the operator did not collect sales tax from drivers and instead owed tax on property it consumed in providing the service. If pr…
Are a smart-farming company's irrigation control components — pump controls, flow meters, soil probes, weather stations, network equipment, and software — taxable tangible personal property, exempt agricultural equipment, or realty improvements when sold to Texas farmers?
It depends entirely on how each component is physically installed. Parts that stay removable without substantial damage (pump controls, flow meters, most probes/stations) remain tangible personal prop…
If a Florida Capital Investment Tax Credit project increases its expected investment to at least $100 million, does its project-income method change, and can unused credits carry over?
The project-income method did not change. If cumulative capital investment reaches at least $100 million, credit unused because of insufficient tax liability may be used in years 21 through 30 after o…
Could a New Mexico salon deduct its independent contractors' weekly booth and room payments as receipts from leases of real property?
No. Solutions Salon did not prove that it surrendered exclusive dominion and control over its booths and rooms. Contractors could use assigned spaces only for salon services, generally only during bus…
If I move to Maryland but keep my Virginia driver's license, have I abandoned my Virginia domicile for income tax?
She did not abandon it. A taxpayer who moved to Maryland still owed Virginia tax as a domiciliary resident for 2015 because she couldn't prove she had truly given up her Virginia domicile. To change d…
Can a Virginia resident claim the out-of-state tax credit for the D.C. Unincorporated Business Franchise Tax, and is denying it unconstitutional double taxation?
No. Virginia's credit for taxes paid to another state (Va. Code § 58.1-332) applies only to a broad-based income tax similar to Virginia's -- and the District of Columbia's Unincorporated Business Fra…
If a person is not a Virginia resident but works part of the week in Virginia, does he still owe Virginia income tax on his Virginia earnings?
Yes -- even as a nonresident he owed Virginia income tax on his Virginia-source income. The IRS flagged that the taxpayer may have had to file a 2016 Virginia return; when he did not respond to the De…
If the IRS never adjusted my return, can Virginia still deny my business expense, itemized, and alimony deductions?
Yes -- Virginia can adjust your deductions even if the IRS never touched your federal return. In an audit, the Department denied a taxpayer's business expense and itemized deductions for 2016 and 2017…
Did a taxpayer who kept Virginia ties and never answered the Department's domicile questionnaire remain taxable as a Virginia domiciliary resident?
Yes -- the assessment was upheld and the taxpayer remained a Virginia domiciliary resident. After the IRS flagged that the taxpayer may have owed Virginia tax for 2014 and no return was on file, the D…
Are Universal Service Fund, Dual Party Relay, and 911 charges taxable on South Carolina phone bills?
A Universal Service Fund surcharge passed through by a local exchange carrier, VoIP provider, or commercial mobile radio provider is generally part of taxable telephone-service gross proceeds, except …
When are purchases by government employees, diplomats, and nonprofit employees exempt from South Carolina tax?
A federal employee's official purchase is exempt only when the federal government is the purchaser—such as direct government billing, a centrally billed government card, or a federal check. An employe…
Could a physical-therapy practice seek administrative costs and professional fees in a new refund claim after receiving its tax refund and unconditionally withdrawing the original protest?
No. Rio Rancho Physical Therapy received its full gross receipts tax refund plus interest, then unconditionally withdrew the protest without requesting or reserving administrative costs and profession…
How did Nebraska report, deduct, and apportion IRC section 965 transition-tax income for the 2017 tax year?
Federal section 965(a) income entered Nebraska returns and the allowed section 965(c) deduction also carried through, but the net inclusion was not a deductible foreign dividend. For the specified pre…
Is selling and installing a modular cleanroom subject to Tennessee sales tax — and how do you tell whether an installed item stays taxable personal property or becomes a nontaxable fixture?
Yes — selling and installing a modular cleanroom is subject to Tennessee sales and use tax, because the cleanroom REMAINS tangible personal property (TPP) after installation rather than becoming a fix…
Can a Texas fleet lessor retitle retired out-of-state vehicles as 'Title Only' and use their value to reduce tax on replacement vehicles?
Retitling the retired vehicles as Texas 'Title Only' caused no use tax because they would not use Texas highways. But their value could not reduce tax on new fleet vehicles because the retired vehicle…
If a marketplace seller sells exclusively through a registered Illinois marketplace facilitator, does that seller still need to register for an Illinois sales tax permit and file returns, or can it cancel an existing registration?
The Department did NOT answer either question. A sales tax consulting firm asked whether marketplace sellers who sell exclusively through registered marketplace facilitators must still register and fi…
Can a Virginia resident claim the foreign pension credit for withholding on returned foreign retirement contributions, and does following the tax form instructions protect them?
No, on both points. Virginia's foreign pension credit (Va. Code § 58.1-332.1) applies only to a foreign country's tax on genuine pension or retirement income included in your federal adjusted gross in…
Can a cigarette wholesaler avoid use tax on resale purchases when its exemption certificates are incomplete or belong to another supplier?
Partly. A cigarette wholesaler assessed use tax on exempt resale purchases wins relief only for sales it can properly document. The Department accepted the wholesaler's sales invoices (rejecting the a…
Did a Texas wooden-pallet manufacturer owe New Mexico gross receipts tax when New Mexico business customers traveled to its Texas location and picked up the pallets there?
No. Eduardo Aguirre lived, worked, manufactured wooden pallets, and completed customer sales at his Texas business. His New Mexico customers traveled to that location and picked up their pallets; his …
When several financial institutions jointly fund a loan to refinance affordable housing in Tennessee, which of them can claim the franchise & excise community investment tax credit, and how is it divided?
It depends on the loan structure. The 'community investment tax credit' (Tenn. Code Ann. § 67-4-2109(h)) lets a financial institution offset its Tennessee franchise & excise tax when it makes a qualif…
Can a New Mexico company's CEO avoid personal liability for unpaid employee withholding tax by delegating all financial work to a CFO during Chapter 11 bankruptcy?
No. Drew Markell was Santa Fe Medical Group's CEO, controlled wage payments and finances, could sign checks, hire and fire staff, approve large expenditures, and signed bankruptcy reports identifying …
May a Florida senior-living community that is licensed in part under chapter 429 buy and furnish meals tax-free to all of its residents?
Yes. Because the community was licensed in part under chapter 429, it qualified as a home for the aged, and meals furnished to all residents—including extra resident meals—were exempt. Guest and other…
IDOC's inmates fund 'offender debit accounts' by paying money at prison commissaries, and IDOC forwards that money to its telecom vendor to pay for phone service. Does that arrangement make IDOC a 'reseller' of telecommunications services -- entitled to give the vendor a certificate of resale -- and does a separate statute capping per-minute inmate calling charges relieve the vendor of its own Telecommunications Excise Tax liability?
No on both counts. IDOC is not acting as a retailer or reseller of telecommunications services merely because it collects money from inmates at commissaries and forwards it to the telecom provider, so…
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.