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.
Can an employee claim Virginia withholding credit when the employer's reported payment cannot be verified?
Yes, if the employee proves the employer actually deducted Virginia tax from wages. Va. Code § 58.1-468 protects an employee when withheld tax was not remitted, but the taxpayer had not supplied verif…
Did moving to New Jersey for work establish a new domicile when the taxpayer kept Virginia licenses and described the move as temporary?
No. The taxpayer's New Jersey home, job, and resident return favored a move, but she kept Virginia driver's, vehicle, and voter registrations and described New Jersey as temporary while pursuing New Y…
Did a married couple abandon Virginia domicile by living and working in a U.S. territory for several years?
No. Although the couple leased a home and the husband worked in the territory, they retained their Virginia house, obtained Virginia driver's licenses and vehicle registration before returning, and th…
What Virginia tax interest rates applied during the second quarter of 2017?
Virginia's second-quarter 2017 rates were 6% for tax underpayments and 6% for tax overpayments. The reduced rate for qualifying assessments under administrative appeal was 1%. Certain local delinquenc…
Could Virginia refund 2011 and 2012 overpayments when the original returns were filed after the three-year deadline?
No. Both returns were filed after the three-year refund period expired, and Va. Code § 58.1-499 D gave the Department no discretion to extend it. Disability did not suspend the deadline, and caring fo…
How should a Virginia city classify and measure a used-car dealer's BPOL receipts from fees, warranties, special orders, and trade-ins?
Processing fees and warranty or insurance commissions connected to vehicle sales were ancillary to the dealer's retail business, not a separate service business. Virginia remanded the special-order, w…
I ran my business as a sole proprietor, then converted it to an LLC and used 'LLC' on my returns. Can the state still hold me personally liable for the gross receipts tax and put a lien on me?
Yes, the owner stayed personally liable and the liens stood — the protest was denied. Richard Casias registered two businesses (R. Casias Trucking and Stars & Stripes Paving) as sole proprietorships t…
How do South Carolina sales tax and the motor fuel user fee apply to compressed or liquefied natural gas used in motor vehicles?
Qualifying compressed and liquefied natural gas used as motor fuel is exempt from sales and use tax but subject to the motor fuel user fee. A fueling station buys raw gas for resale without either tax…
Which communication and online services does South Carolina treat as taxable transmissions, and which services are exempt or nontaxable?
South Carolina taxes charges for access to or use of systems that transmit voice or messages, including many telephone, programming, streaming, email, and individual-website services. Internet access …
Were new RVs financed by a bank still the dealer's taxable inventory for Virginia merchants' capital tax?
Yes. RVs titled in the dealer's name and held by the bank only as collateral were dealer-owned inventory; true consignments would not be. Virginia upheld the county's rate but remanded because the cou…
Can a Virginia locality tax a nursery's inventory as merchants' capital and its other business property under BTPP rules?
Yes. Merchants' capital and business tangible personal property are separate property classes, so both taxes can apply. A locality may not impose both BPOL and merchants' capital tax on the same merch…
For Virginia BPOL tax, is a company that buys defaulted debt for its own account a collection agency or a financial-services business?
It was a financial-services business. The company bought discounted debt for its own account, kept any collections, and bore the loss risk. A collection agency instead collects for a client and remits…
Could a city buy construction materials tax-free for a public project through an owner-direct-purchase arrangement?
Yes, conditionally. The city could make exempt direct purchases if it executed the amended contract, ordered, was invoiced for, and paid vendors directly, took title, and retained risk of loss until t…
Could an acquired corporation stop filing its former Florida consolidated return after the old affiliated group terminated?
Yes. The unrelated stock acquisition caused the taxpayer's former affiliated group to cease existing under the federal group rules Florida follows, so the old consolidated filing could not continue.
When does Georgia sales tax apply to a rental-car reservation fee, a full advance payment, or a retained cancellation charge?
A partial reservation fee is not taxed when paid because it only preserves the chance to rent, not possession or control of a specific car. If the rental occurs, the fee becomes part of the final taxa…
Were mobile point-of-sale devices amusement machines, and how were the device and premium-content charges taxed?
The devices were not coin-operated amusement machines because their predominant use was point-of-sale functionality. But the provider's device charges and patrons' premium-content fees were both taxab…
Are vitamins, dietary supplements, and similar products taxed at Illinois's low 1% food/drug rate or the general 6.25% sales-tax rate?
Vitamins, food supplements, and meal-replacement drink mixes are generally taxed as food at Illinois's low 1% rate (plus local taxes), because they are consumed for human internal consumption. They ar…
What is South Carolina's tax interest rate for underpayments and overpayments for the period ending June 30, 2017 (per SC IL #17-5)?
4%. SC Information Letter #17-5 sets South Carolina's interest rate on tax underpayments and overpayments at 4% for the period April 1, 2016 through June 30, 2017. Interest is compounded daily, except…
Could D-Trix exclude claimed private oilfield-road miles and report only loaded government-road miles for New Mexico weight-distance tax?
No further reduction was allowed. Weight-distance tax required reporting all New Mexico highway miles, loaded or empty; qualifying one-way haulers received a reduced rate rather than omitting empty mi…
Could a new owner of a pass-through entity use distributed Nebraska Historic Tax Credits for a year before becoming an owner?
No. Type B historic credits distributed through a pass-through entity could not offset tax for a year before the recipient became a member, partner, or shareholder. The Act allowed unused credits to c…
Are a social clubs fees charged to non-members for lessons, camps, sing-alongs, and facility rentals taxable?
Mostly no. A clubs member dues are taxable, but fees charged to non-members are not taxable just because of the clubs status — each activity is judged on its own nature. Tennis lessons are non-taxable…
Were a vehicle-retail integration provider's separately stated electronic credit-reporting charges subject to Florida sales tax?
No. The separately stated monthly charges were nontaxable credit-reporting services, and their electronic delivery did not constitute a sale of tangible personal property or a taxable information serv…
Were separately stated monthly charges for electronically delivered credit-reporting services subject to Florida sales tax?
No. The separately stated monthly credit-reporting charges were nontaxable both as separately stated credit-reporting services and as electronically furnished information that was not tangible persona…
Was the full price of a laser-tag party package taxable when it included pizza, beverages, and party services?
Yes. Because each package included food and beverages, the entire charge—including laser tag, the room, invitations, paper goods, and cleanup—was taxable. Standalone admission remained exempt, and tax…
When does an out-of-state seller have enough connection ('nexus') with Illinois to owe Retailers' Occupation Tax or to have to collect Use Tax from Illinois customers, and how does Illinois treat related issues like software, cloud computing, drop shipments, and short-term rental platforms?
Illinois could not give a simple yes/no answer to a multistate nexus survey because nexus determinations are too fact-specific for a General Information Letter. Instead, the Department outlined its ge…
Does providing cloud-based software (like software as a service, an API, or a remote access agent) trigger Illinois Retailers' Occupation, Use, or Service Occupation Tax, and can an Illinois-based automated call-center service create sales tax nexus for its out-of-state clients?
A provider of software as a service acts as a serviceman: if nothing tangible is transferred to the customer, the service generally is not subject to Retailers' Occupation, Use, Service Occupation, or…
Did a custom oral device that advances the jaw to keep a sleep-apnea patient's airway open qualify as an Illinois medical appliance?
Yes. Based on the described operation, IDOR ruled that the physician-prescribed, dentist-custom-fitted device directly substituted for or corrected a malfunctioning body function by moving the jaw for…
Could Chesterfield County tax Verizon cable set-top boxes, and could it raise an appeal-timeliness objection for the first time in circuit court?
No on both issues. The Supreme Court of Virginia held that Verizon's cable set-top boxes were intangible personal property not subject to local tax. Chesterfield County also waived its 2008-2009 timel…
Is an online service that turns users photos and clips into videos taxable as prewritten software in New York?
Yes. The company sells online access to a web interface that lets customers turn their photos and clips into videos: customers choose content, order, music, logos, text, and style, and proprietary vid…
Can a taxpayer increase his New York basis in out-of-state municipal bonds by the premium paid, when New York taxes the interest but allowed no deduction for the amortized premium?
No. New York determines bond basis under federal law. Because the taxpayer must amortize the premium on tax-exempt bonds and reduce basis each year (IRC § 171; § 1016(a)(5)), and no New York Tax Law p…
Is a lump-sum distribution from a federal employee's Thrift Savings Plan (TSP) exempt from New York income tax?
Yes. The lump-sum TSP distribution attributable to contributions made by the federal employee and his federal employer is exempt from New York income tax under the federal-employee pension subtraction…
Does a German employer pension qualify for Illinois's income tax subtraction for retirement income?
No. The Illinois Department of Revenue concluded that a pension paid by a private German employer under Germany's Betriebsrentengesetz does not qualify for the Illinois retirement-income subtraction, …
Can a partnership use IITA Section 304(f) alternative apportionment (specific accounting) to change how business income is allocated among its nonresident partners under Section 305(a)?
No. The Illinois Department of Revenue concluded that Section 304(f) only lets a taxpayer petition for an alternative method of allocating and apportioning its own business income to Illinois when the…
Does New York sales tax apply to a free app that lets users pay to use restrooms at participating venues?
No, on both counts. The app is prewritten software, which is taxable tangible personal property when sold — but a sale requires a transfer for consideration, and here the app is given to users free of…
Could a taxpayer take a BPOL dispute to the Virginia Department before filing a complete local appeal?
No. The county's audit letter was not a final appeal determination, and the taxpayer had not filed a complete local appeal. The Department lacked jurisdiction until that process was completed, but the…
Is subscription access to an online secure board-document file-sharing portal taxable as software in New York?
Yes. The petitioner sells subscription access to online applications that let corporate boards store, annotate, approve, collaborate on, and share secure documents. Giving customers access to this pre…
Could Hydrotech avoid IFTA tax and IRP penalties after a departing employee and office move left fleet fuel and mileage records unavailable during audit?
Only the IFTA penalty was waived. Hydrotech did not timely produce the trip, mileage, jurisdiction, fuel-purchase, and vehicle records required by IFTA and IRP, and later documents were too incomplete…
Was a business that bought, rehabilitated, and resold real estate a contractor for Virginia BPOL tax even when independent contractors did the work?
Yes. A business constructing or improving property for its own account for sale can be taxed at the contractor rate even when it hires others to perform the work. Virginia upheld that classification b…
Was a facility that sold steam but earned most of its revenue from electricity primarily engaged in producing electricity for resale under Georgia's energy exemption?
Yes. Considering the integrated operation as a whole, the Department found the facility primarily engaged in producing electricity for resale. Key facts included that electricity generated more than h…
Can a printer qualify as a Georgia manufacturer, and can its purchase or lease of a copier receive the manufacturing machinery exemption?
A printer may be a qualifying manufacturer if it manufactures tangible personal property for sale or further manufacturing at a manufacturing plant. A copier may then qualify if it is machinery or equ…
Are separately stated electronics extended warranties, repair service fees, and enrollment in a device-upgrade program subject to Georgia sales tax?
A separately stated optional extended warranty is a nontaxable service. But when a covered repair is performed for one non-itemized fee covering parts and labor, that repair fee is taxable. Free enrol…
Are internet-delivered course licenses, online hosting, software customization, and translation services subject to Georgia sales tax?
No, on the described electronic-only transactions. Online course licenses and hosting were not taxable when customers received no software in a tangible medium and no right to receive it that way. Sof…
Could Wells Fargo claim New Mexico renewable energy production credits for 2011 when facilities produced energy that year but eligibility certificates issued in 2012?
No. Preliminary approval of a facility's application package reserved priority but did not authorize the tax credit. Section 7-2A-19 required the taxpayer to submit the Energy Division's certificate o…
Can an LLC buy an aircraft tax-free as a sale for resale and lease it back to its own parent company, and does later using the aircraft itself trigger sales tax?
Yes, with a one-year condition — a company that buys an aircraft to lease it to another party (even a related party, like its own parent) qualifies for the sale-for-resale exemption from sales/use tax…
May a Georgia motor-vehicle rental dealer buy oil for routine oil changes tax-free as a resale item?
No. Although a rental dealer may buy vehicles and repair parts that become part of rental vehicles tax-free for resale, motor oil used in routine oil changes is a consumable used in the dealer's opera…
When is electricity for vacant apartments, residential outbuildings, apartment amenities, and HOA common areas exempt from South Carolina sales tax?
Electricity remains exempt for a vacant apartment intended for residential rental and for separately metered structures connected with a home when used residentially. But electricity sold to an HOA fo…
How do Georgia sales tax and title ad valorem tax apply to leased commercial trucks, non-motorized trailers, IRP vehicles, repair parts, and lease fees?
A lessor may buy trucks, trailers, and repair parts for its lease inventory tax-free for resale, but lease payments are generally subject to sales tax unless TAVT or another exemption applies. Georgia…
Did disability suspend Virginia's three-year deadline for claiming a 2012 income-tax refund?
No. The 2012 return had to be filed by May 2, 2016 to obtain a refund, but it was not filed until October 2016. Virginia law required a fiduciary or authorized agent to file for a disabled taxpayer an…
When a lessor replaces or adds equipment on a long-term lease with under three years left, is it still a long-term lease or a new short-term lease?
It depends on whether you replace or add. Replacing existing equipment on a long-term lease (over three years) keeps it a long-term lease — you keep collecting tax on each lease payment — even if the …
Did Ronald Jaynes preserve his gross receipts tax protest by calling officials and trying to resolve the audit before submitting anything in writing after the deadline?
No. The Department mailed the $12,383.81 assessment on April 11, 2016, making July 11 the written-protest deadline. Jaynes contacted Department personnel, the State Auditor, and the Governor's office,…
Does selling recovered salts and minerals as a byproduct disqualify a water desalination company's equipment purchases from the Texas desalination sales tax exemption?
No — a company's equipment, services, and supplies used in desalinating water remain exempt from Texas sales and use tax under the desalination exemption even if the company sells the recovered salts …
Could an affiliated group stop filing Florida consolidated returns after ending its former business and changing its business focus?
Yes. Ending the healthcare business and shifting the group's business focus supplied good cause to deconsolidate. Because the request missed the rule's advance deadline, however, separate filing began…
Which Florida machinery exemptions applied to energy-from-waste facilities, repairs, and their production process?
The operators did not qualify for the cited NAICS- or SIC-limited manufacturing exemptions. But qualifying machinery used to produce electricity or steam, including its repairs, maintenance, and repla…
When a motor vehicle is sold to a leasing company for a long-term lease (over one year), who owes Retailers' Occupation Tax or Use Tax, and does that include any tax amount the lessor passes through to the lessee?
The dealer that sells the vehicle to the leasing company owes Retailers' Occupation Tax, and the leasing company (as purchaser/user) owes Use Tax; the lessee owes neither tax directly. For leases long…
Could a de minimis pan-refurbishing serviceman buy glaze tax-free when it became part of customers' exempt commercial baking equipment?
Yes for properly documented industrial-baker customers. The glaze was cured into and became part of exempt baking pans used in manufacturing, so the serviceman could buy it tax-free from Illinois supp…
Was a separately purchased consumer-electronics extended warranty taxable when customers also had to buy it to use a device-upgrade program?
No. IDOR treated the separately priced extended warranty as an optional maintenance agreement, so its sale was not subject to Retailers' Occupation Tax even when purchase was required for upgrade-prog…
A Tennessee company licenses speech-recognition software to run a transcription service and charges its clients a fee per report. Are the fees it charges clients taxable, and is the software the company itself buys taxable or exempt as a purchase for resale?
Two different answers. (1) The report fees the company charges its CLIENTS are NOT subject to Tennessee sales tax — the true object is a nontaxable transcription and storage service, and the small 'cl…
Is a dealer's vehicle depreciation-protection membership taxable, and is its payment toward a replacement vehicle included in taxable consideration?
The membership fee was not a taxable insurance service or part of the original vehicle's taxable price. But when the program paid a benefit toward a replacement vehicle after theft or total loss, that…
Are 'dial before you dig' underground-utility notification centers providing a taxable information service to the utility operators who fund them?
No — a statewide 'dial before you dig' notification center that alerts underground utility operators when excavators plan to dig near their lines is NOT providing a taxable information service, even t…
Is a dealership membership program that pays a car buyer's depreciation loss (beyond their insurance settlement) after a total loss or theft taxed as insurance, and does the benefit affect motor vehicle sales tax on the replacement car?
Three separate answers for three separate charges — the membership fee a car buyer pays to join a dealership's vehicle depreciation-protection program is NOT a taxable insurance service (because the p…
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.