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.
Are implantable cardiac monitors exempt from Virginia sales tax as durable medical equipment?
Yes, when a monitor is bought by or for a specific patient on a licensed practitioner's prescription or work order and the seller keeps supporting records. Bulk purchases by a medical practice are tax…
Was natural gas used to generate electricity exempt from compensating tax as chemicals bought in 18-ton lots or as a manufacturing ingredient?
No. Natural gas qualified as chemicals or reagents and each invoice exceeded eighteen tons, but Tucson Electric did not prove how the gas was sold and delivered as a discrete 'lot.' Its alternative in…
Did military-spouse status exempt a taxpayer who had established Virginia domicile before the federal protection changed?
No. The taxpayer's pre-2009 resident returns, Virginia home and employment, and 2009 Virginia driver's license supported Virginia domicile. She supplied no documentation proving a shared out-of-state …
Did a federal construction contractor owe consumer use tax on freestanding furniture, audiovisual equipment, and installed cabling?
The audit had to be revised. Freestanding furniture and equipment not affixed to real property could be retailer sales if resale requirements were met. Permanently affixed cabling remained taxable to …
Are custom herbal formulas that a licensed acupuncturist prepares and sells to clients exempt from Colorado sales tax as prescription drugs, nonprescription drugs, or materials furnished by a licensed provider?
They're taxable. Custom herbal formulas an acupuncturist prepares and sells do NOT qualify for Colorado's medical exemptions for prescription drugs, nonprescription drugs, or materials furnished by a …
Does Colorado sales tax apply to charges for a live web seminar, a pre-recorded webinar, and a self-study course delivered over the web?
It splits three ways by how 'live' the instruction is. A charge to attend a LIVE web seminar is NOT taxable — it's a service, because a live instructor is providing educational services. A charge to w…
Is the 'into-plane fee' for transporting aviation fuel from the airport fuel farm to a customer's aircraft subject to Colorado sales tax when the customer buys the fuel from one company but contracts separately with a different fixed-base operator for the fueling service?
No, on these facts. The 'into-plane' fee — for moving fuel from the airport fuel farm into the customer's aircraft — is a nontaxable service here, because the customer buys the taxable fuel from one c…
Was gain from an out-of-state property sale excluded when the taxpayers had already bought a Virginia home and reported moving before the sale?
No. The taxpayers did not prove that their Virginia domicile began after the September 24, 2012 sale. Their August home purchase, time spent in Virginia, vehicle record stating a September 17 move, la…
Could a service member claim Virginia's National Guard pay subtraction without proof of Virginia Guard service?
Not on the existing record. The subtraction applied only to qualifying service in the Virginia National Guard, while the W-2 suggested Department of Defense reserve service. Virginia allowed 30 days t…
Did a retiree living in Virginia for more than 183 days owe Virginia tax on New York retirement income?
Yes. The retiree took steps to abandon New York and establish Virginia domicile, and she also lived in Virginia for more than 183 days. Virginia could tax her retirement income, subject to a possible …
Did renting a District of Columbia apartment establish a new domicile outside Virginia for 2012?
No. Renting a D.C. apartment and later registering to vote there did not prove a permanent D.C. domicile, especially without evidence of a D.C. tax filing and amid an overseas move followed by a retur…
Could Virginia recover a refund after a second return reported higher federal adjusted gross income?
Yes. Virginia properly issued the first refund from the original return, but the second return increased federal adjusted gross income and tax liability. The earlier refund then became an erroneous re…
When did a family that moved for work, schools, and a home purchase become Virginia residents?
Their Virginia residency began in September 2012. By then the husband had permanent Virginia work, the children attended Virginia schools, and the family was staying in Virginia before buying a home. …
Which audit items could a Virginia wholesaler remove using a resale certificate, electronic-delivery evidence, or customer use-tax payments?
Only the resale-certificate sales were removed. The wholesaler accepted a complete certificate in good faith. Its generic vendor email did not prove the specific software was electronically delivered,…
Could a convenience-store owner avoid converted sales- and withholding-tax assessments by disputing the underlying audits?
No, based on the existing record. The owner showed neither that another person was responsible nor that the store audits were wrong, so the assessments were properly converted to him. Virginia allowed…
Were a New Mexico USANA associate's downline sales commissions deductible because the Utah company's underlying product sales lacked New Mexico nexus?
No. USANA products were delivered and consumed in New Mexico, and its local associates and distributors established and maintained the company's market, creating substantial nexus under the law applie…
Could a replacement septic system at an Illinois manufacturing plant qualify for the enterprise-zone building-materials exemption?
Potentially yes, if the septic system was permanently affixed to real estate in an enterprise zone, but IDOR could not decide without more information. For purchases on or after July 1, 2013, the cont…
What Virginia tax interest rates applied during the third quarter of 2016?
Virginia's third-quarter 2016 rates were 6% for tax underpayments and 6% for tax overpayments. The reduced rate for qualifying assessments in administrative appeals was 1%. Certain local delinquency a…
Are voluntary tip-jar payments to a Santa Fe Plaza street musician subject to New Mexico gross receipts tax?
No. Roark Barron operated Luscous Music as a business and properly paid tax on $10 compact-disc sales, but Plaza listeners had no obligation to pay for his street performances. Their voluntary tip-jar…
Do Kansas fiduciaries filing Form K-41 have to make estimated income tax payments?
No. Fiduciaries filing a Kansas Form K-41 (for a trust or estate) are not required to make estimated income tax payments. As of 2016 the Department's system was not designed to accept them, and volunt…
Did a Type 9 government NTTC exempt DNA and drug-testing services sold to New Mexico's Children, Youth and Families Department?
No. Mobile Blood Services sold laboratory testing services to CYFD, while the Type 9 NTTC CYFD issued covered tangible personal property rather than government purchases of services. The tax and inter…
For Texas franchise tax, can a company include wages paid to employees at its foreign offices in its compensation deduction if those wages are reported on a foreign government form instead of an IRS Form W-2?
Yes, but only for actual employees — a company may include in its Texas franchise tax compensation deduction the wages and cash compensation it pays to employees at international offices, as long as t…
What is South Carolina's tax interest rate for underpayments and overpayments for the period April 1, 2016 through September 30, 2016 (per SC IL #16-7)?
4%. SC Information Letter #16-7 sets South Carolina's interest rate on tax underpayments and overpayments at 4% for the period April 1, 2016 through September 30, 2016. Interest is compounded daily, e…
Could a taxpayer overturn a Virginia assessment merely by denying residence and Virginia-source income?
No. The taxpayer supplied no objective evidence supporting his denial of Virginia residence or Virginia-source income. Virginia allowed one final 30-day opportunity to provide domicile records or file…
Was an out-of-state driver's license alone enough to overturn a Virginia residency assessment?
No. An out-of-state driver's license was only one domicile factor, and the taxpayer did not answer Virginia's request for the rest of the evidence. Virginia allowed 30 days for adequate documentation …
Was a defense contractor's rebuilding work exempt manufacturing for local BPOL tax, or taxable service and repair activity?
The rebuilding processes were substantial manufacturing, but exemption also required wholesale sales. One weapon-system contract primarily paid for services, while the evidence for other contracts was…
New York Advisory Opinion TSB-A-16(5)C: Do unauthorized foreign surplus-lines (non-life) insurers compute their franchise tax under Tax Law section 1502 or section 1502-a, and does the section 1505(a)(1) limitation cap their liability?
They must compute tax under Tax Law section 1502, not section 1502-a, for years beginning on or after January 1, 2003, because section 1502-a applies only to authorized non-life insurers; the section …
New York Advisory Opinion TSB-A-16(4)C: Do unauthorized foreign surplus-lines (non-life) insurers compute their franchise tax under Tax Law section 1502 or section 1502-a, and does the section 1505(a)(1) limitation cap their liability?
They must compute tax under Tax Law section 1502, not section 1502-a, for years beginning on or after January 1, 2003, because section 1502-a applies only to authorized non-life insurers; the section …
Could a GPS-device seller accept automobile dealers' resale certificates when dealers activated and used the devices before vehicle resale?
No. The dealers exercised control by installing, activating, and using the GPS devices to track or disable vehicles, and the contracts restricted resale without written approval. The device sales were…
Were eyeglasses supplied through Medicare Advantage, Medicaid HMO, or other managed-care plans exempt from Illinois tax?
Not merely because the patient had Medicare or Medicaid coverage. Eyeglasses were medical appliances taxed at the 1% rate under the applicable retail or service method. Only payments made directly by …
An organization sells printed educational booklets — with reading passages and questions tied to school standards — almost entirely to schools, teachers, and homeschooling parents. Are those booklet sales exempt from Tennessee sales tax as textbooks?
Yes. The organization's booklet sales are exempt from Tennessee sales and use tax. Although printed materials are tangible personal property and generally taxable, Tennessee exempts sales of 'textbook…
Could a Virginia resident report zero income when S-corporation and IRS records showed pass-through and business income?
No. The S corporation filed returns, maintained Virginia employees, and reported pass-through income, while IRS records showed additional business income. Without objective corrected federal income ev…
Could a Virginia resident postpone filing until a federal return reporting a casualty loss was completed?
No. Virginia filing duties were established by Virginia law, not by when the taxpayer chose to file a federal return reporting a casualty loss. Because no Virginia return was filed, the Department cou…
Could a taxpayer prove foreign domicile for 2010 and 2011 without answering Virginia's document request?
Not on the existing record. The taxpayer had filed Virginia resident returns for 2005 and 2006 and supplied no documents supporting foreign domicile for 2010 and 2011. Virginia allowed 30 days for ade…
Could a veterinary clinic remove sampled purchases from a Virginia use-tax audit using affidavits and lease documents instead of detailed invoices?
Mostly no. Affidavits did not prove that tax had been paid or that purchases were nontaxable, and lease documents saying payments were plus applicable tax did not show tax was included. Virginia remov…
Could a communications provider delay Virginia bad-debt tax credits for 12 months to net later customer recoveries?
No. The provider had to claim the communications-tax credit on the return covering the period when an account became worthless. Any later collection had to be included on the first return after recove…
A qualified data center processes customers' data using its own and third-party software, and also charges affiliated companies for remote access to that software. Are its data-processing service charges — and its software-access charges to affiliates — subject to Tennessee sales tax?
No to both. (1) The qualified data center's charges for the services it performs are NOT taxable — they are nontaxable information and data processing services, and the fact that the center uses softw…
A serious illness caused me to fall behind on my gross receipts tax filings — can New Mexico waive the negligence penalty for a medical hardship?
No — the penalty stood, and the protest was denied. M & M Stores, Inc. runs three Albuquerque gas-station convenience stores; its manager and accountant, Murad Hijazi, handles its monthly gross receip…
Does the City of Round Rock qualify for the state's hotel-project tax rebate under Tax Code Section 351.102(b), even though it isn't a 'qualified hotel project' city like Houston?
Yes. The Comptroller ruled that the City of Round Rock qualifies under Tax Code Section 351.102(b) — a broader, separate hotel-project rebate category than the 'qualified hotel project' definition tha…
Are Nutrition-Facts-labeled food products sold through an MLM network exempt from Georgia state and local sales tax?
The products were exempt from Georgia state sales tax, but not local sales tax, because their Nutrition Facts labels and represented use showed they were food and food ingredients for off-premises con…
Could MANS Construction obtain a gross receipts tax refund after it mistakenly included separately stated tax in reported receipts?
Yes, in part. MANS Construction proved that an October 2012 White Sands billing included $66,407.66 of separately stated gross receipts tax that it mistakenly left in reported receipts. The AHO ordere…
Did limited Illinois trade-show attendance and customer referral credits give an out-of-state online retailer Illinois Use Tax collection nexus?
IDOR did not decide. It said nexus determinations were too fact-specific for a General Information Letter and were best made by auditors conducting the required factual investigation. The letter there…
Was propane delivered for rural home heating exempt from Illinois local retailers' occupation tax?
No. The Illinois Retailers' Occupation Tax Act did not exempt L.P. propane gas used to heat homes. Local retailers' occupation taxes administered by IDOR followed the State Act's exemptions, credits, …
Could a leased soybean seed treater, tanks, conveyors, and controls qualify for Illinois's farm-machinery exemption?
Potentially, but IDOR could not decide without more information. Machinery purchased for lease could qualify when the lessee used it primarily in production agriculture and the purchaser-lessor certif…
Could off-road logging and forestry equipment qualify for Illinois's farm-machinery exemption?
Yes, potentially. Off-road equipment used primarily—more than 50%—in forestry harvesting could qualify as farm machinery used in production agriculture or in a State or federal agricultural program. Q…
Could a tile subcontractor deduct 2008-2009 receipts using an NTTC submitted more than three years after the 60-day audit deadline?
No. S.J. Tile could deduct construction receipts supported by timely NTTCs, but the TAJ Construction certificate arrived more than three years after the July 6, 2012 deadline and could not be consider…
When is South Carolina's 2016 sales tax holiday and what items are exempt (per SC IL #16-6)?
South Carolina's 2016 sales tax holiday runs from 12:01 a.m. Friday, August 5, 2016 through midnight Sunday, August 7, 2016. During that three-day weekend, the 6% state sales and use tax and any appli…
How must Kansas PACT Act cigarette and tobacco reports be filed after 2016?
Kansas Notice 16-01 explains that under Senate Substitute for House Bill 2124, enacted by the 2015 Legislature, all PACT Act reports must be filed electronically in the manner prescribed by the Direct…
Were service, installation, and freight charges on two Illinois invoices taxable?
IDOR could not decide because the invoices had no highlighted lines and did not reveal what was provided. Generally, a construction contractor owed Use Tax on materials permanently incorporated into r…
Was industrial air-pollution-control equipment still generally exempt from Illinois sales tax after July 1, 2003?
No. Public Act 93-24 repealed the general pollution-control sales-tax exemption effective July 1, 2003. A narrower enterprise-zone exemption remained for tangible personal property used or consumed in…
Could a taxpayer reduce a 2012 Virginia assessment by saying she moved to Virginia in August and earned all income elsewhere?
Not without supporting records. The taxpayer acknowledged Virginia's request but did not provide enough evidence to determine her domicile or correct 2012 liability. Virginia upheld the estimate while…
Could a taxpayer establish an out-of-state move during 2012 without providing the residency and filing records Virginia requested?
No, not on the existing record. The taxpayer said she lived in another state from August 2011 until November 2012 but provided no objective residency or filing evidence. Virginia allowed 30 days for d…
Was a managing partner personally liable when 51 monthly sales-tax returns went unfiled and business bills were paid instead?
Yes. As an active manager who handled payroll, quotes, checks, and business expenses, he had a duty to ensure sales-tax filing and payment. The record showed knowledge and willfulness while 51 consecu…
Was a managing partner personally liable for a corporation's unpaid sales tax when a bookkeeper normally filed the returns?
Yes. The bookkeeper's usual filing role did not eliminate the managing partner's own duty. He had signed returns and tax documents, managed the business, knew taxes were collected and unpaid, and had …
Could self-employed contractor Jimmy Stuart have New Mexico penalty and interest removed because paying them would cause financial hardship?
No. Jimmy Stuart admitted the tax but sought relief from penalty and interest because of financial hardship. Interest was mandatory, and his failure to investigate and report CRS taxes was negligence.…
What Virginia state and local tax legislation did the 2016 General Assembly enact?
This Department guide summarizes state and local tax legislation enacted during Virginia's 2016 General Assembly session through the April 20 reconvened session. Each entry identifies the legislation,…
New York Advisory Opinion TSB-A-16(3)C: Did a bank's regular employee trips to, and computer equipment housed at, a New Jersey hosting center make it 'doing business' outside New York so it could allocate its income under Article 32?
Yes. A bank whose employees regularly traveled to a New Jersey hosting center, where it kept data-processing equipment under a 10-year license, was doing business outside New York and therefore entitl…
Are a real-estate listing website's paid agent-promotion products subject to New York sales tax?
No. The three paid products (ad-free featured listings, and buying a share of agent-list/banner views by zip code or city, on web and mobile) all enhance an agent's advertising position on the site, s…
Which of a restaurant franchisor's charges to its New York franchisees are subject to sales tax?
It splits by item. Taxable: charges for hardware (including the internet-connection device), the combined hardware-and-software installation charge (not separately stated), and ongoing IT support that…
Are web-based identity/access-control and data-messaging services subject to New York sales tax?
It depends on the service. The two 'Communicate' products - a hosted Portal and a Trusted Identity Framework - act as electronic gatekeepers that verify users and keep unauthorized people out of a cus…
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.