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State Tax Rulings

Free state tax letter rulings and advisory opinions with plain-English summaries, full citations, and the original source on every page.

20,751 rulings and counting · 17 states · Updated July 31, 2026
20,751 rulings

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NM

Can I reopen a New Mexico tax assessment I already lost by protesting the state's later seizure notice or tax lien?

No — once an assessment has been protested, decided, and affirmed on appeal, you generally cannot relitigate it by protesting the collection steps that follow. William Gardner, representing himself, t…

July 10, 2026
SC

What South Carolina tax guidance is listed in the Department's advisory-opinion index through June 30, 2026?

SC Information Letter 26-18 is a research index, not a substantive tax ruling. It catalogs South Carolina Department of Revenue advisory opinions issued from 1987 through June 30, 2026 under administr…

July 7, 2026
SC

How should taxpayers use South Carolina's advisory-opinion citator, and what legal changes does the citator not track?

Use the citator as a research aid to see which South Carolina advisory opinions the Department identifies as modified, obsolete, superseded, modifying, or superseding through June 30, 2026. Do not tre…

July 7, 2026
VA

Can Virginia disallow both Schedule C business expenses and Schedule A itemized deductions on an audit, and uphold the resulting assessment, if the taxpayer never sends in records to support them?

Yes. Virginia starts its individual income tax computation from federal adjusted gross income (FAGI), and the Department has authority under Va. Code §§ 58.1-219 and 58.1-310 to examine and adjust bot…

July 7, 2026
SC

When is South Carolina's 2026 sales tax holiday, and which items are tax-free?

South Carolina's 2026 sales tax holiday runs from 12:01 a.m. Friday, August 7, 2026 through midnight Sunday, August 9, 2026. During that 72-hour window, eligible clothing and accessories, footwear, sc…

July 6, 2026
SC

What South Carolina tax interest rate applies from July 1 through September 30, 2026, and what rate is paid on eligible refunds?

The listed rate for South Carolina tax underpayments and overpayments from July 1 through September 30, 2026 is 7%. Interest is compounded daily, except that simple interest applies to underpayments o…

July 2, 2026
KS

Is Kansas participating in the new federal tax credit for donations to scholarship granting organizations?

Yes. Kansas Notice 26-10 explains 2026 Senate Bill 361, by which the State of Kansas elects to participate in the new federal tax credit for individuals' contributions to scholarship granting organiza…

July 1, 2026
KS

Which Kansas income, privilege, and premium tax credits did 2026 Senate Bill 82 repeal?

Kansas Notice 26-09 explains 2026 Senate Bill 82, which deletes or repeals five income, privilege, and/or premium tax credits effective July 1, 2026. Section 2 amends K.S.A. 65-7107 to delete the cred…

July 1, 2026
KS

Does Kansas give an income tax subtraction for portable benefit plan contributions for independent contractors?

Yes, beginning with tax years after December 31, 2026. Kansas Notice 26-08 explains 2026 House Bill 2602, which defines a "portable benefit plan" for independent contractors and amended K.S.A. 79-32,1…

July 1, 2026
KS

Can Kansans deduct health care sharing ministry payments and shares on their state income tax?

Yes, beginning with tax years after December 31, 2026. Kansas Notice 26-07 explains 2026 Senate Bill 368 — enacted over the Governor's veto — which created the Health Care Sharing Ministries Tax Deduc…

July 1, 2026
KS

Does Kansas offer an income tax credit for buying gun and ammunition storage?

Yes. For tax years 2026 through 2028, a Kansas resident individual can claim a credit against Kansas income tax equal to 25% of what they spend to buy lockable storage designed primarily for guns and …

July 1, 2026
KS

Does Kansas give employers a tax credit for childcare expenses?

Yes. Kansas has an income and privilege tax credit for employers that help pay for their employees' child care, and 2026 Senate Bill 82 expanded it (applies to tax years beginning on or after January …

July 1, 2026
KS

Does Kansas give fuel retailers a tax credit for selling higher ethanol blends?

Yes. A new Kansas income tax credit, created by 2026 Senate Bill 82 and added to K.S.A. 79-32,201 as subsection (h), lets a retail dealer claim $0.05 for each gallon of "higher ethanol blend" it sells…

July 1, 2026
KS

Did Kansas extend its angel investor, Eisenhower Foundation, Cedar Crest, and aviation tax credits?

Kansas Notice 26-03 explains 2026 House Bill 2464, which extends four Kansas income tax credits. The angel investor credit (K.S.A. 74-8133) is extended through tax year 2031, and starting in tax year …

July 1, 2026
NE

What new fees does the Nebraska Department of Revenue charge under Neb. Rev. Stat. 77-371, effective July 1, 2026?

Effective July 1, 2026, Neb. Rev. Stat. § 77-371 authorizes six Department of Revenue fees: a collection of delinquent taxes fee and an assessment fee, each the greater of $25 or 10% of the tax liabil…

June 26, 2026
MO

If a customer's extended-warranty company authorizes and gets billed for a repair, does the auto dealer have to charge Missouri sales tax on the parts used, even though the warranty company claims it's tax-exempt?

Yes. The dealer's sales of repair parts to the warranty company are subject to Missouri state and local sales tax, because the parts aren't being resold and the warranty company's 'Multi-State Certifi…

June 22, 2026
MO

I'm a Missouri resident who bought an aircraft from a private seller in Missouri, had it repaired and stored here for a few months, and then moved it to Kansas where it's now hangared -- do I owe Missouri use tax on the purchase?

Yes. Because the aircraft was stored and used in Missouri for several months before being moved to Kansas, the purchase is subject to Missouri consumer's use tax -- aircraft don't qualify for the moto…

June 22, 2026
MO

If a hotel guest's room charges are billed directly to the federal government (including via a GSA SmartPay travel card), does the hotel need to charge Missouri state and local sales and use tax on that stay?

No. Missouri ruled that a hotel's lodging charges are exempt from state and local sales and use tax whenever payment is made directly by the U.S. government, including through a GSA SmartPay travel ca…

June 22, 2026
TX

Are membership fees for access to an unstaffed, automated self-service dog-wash facility taxable in Texas when its stations are permanently plumbed into the building?

No. Customers washed their own dogs without employee assistance, so the taxpayer did not provide taxable dog-grooming services. The permanently plumbed stations were real-property improvements, not le…

June 16, 2026
IL

Does Illinois use tax apply to inventory given away for free, can tax paid to another state be credited, and does marketplace-held inventory create nexus?

Three answers. First, when a donor possesses or can control tangible personal property in Illinois and gives it away for free, the donor has 'used' the property in Illinois and owes Use Tax on its cos…

June 12, 2026
SC

Who qualifies for South Carolina's new Pregnancy Resource Tax Credit, and how do donors and charities claim it?

South Carolina's new Pregnancy Resource Tax Credit (Code Section 12-6-3383, added by Act 162 of 2026) is a nonrefundable income tax credit for voluntary cash contributions to certified pregnancy resou…

June 9, 2026
CO

Can a Colorado wholesaler without a state-issued sales tax license use the Multistate Tax Commission's Uniform Sales & Use Tax Resale Certificate to buy tax-free?

No. A wholesaler without a state-issued Colorado sales tax license cannot use the Multistate Tax Commission's Uniform Sales & Use Tax Resale Certificate, because that form requires attesting to a vali…

June 9, 2026
IL

Is a program enrollment fee for an overnight immersive role-play experience subject to Illinois's Hotel Operators' Occupation Tax?

Yes. A facility that assigns participants overnight sleeping accommodations as part of a structured program -- even a private immersive role-play experience with no public lodging or reservations -- i…

June 4, 2026
IL

Does a livestock shade system qualify for Illinois's farm machinery and equipment sales tax exemption?

No. Illinois's farm machinery and equipment exemption doesn't cover livestock shade systems, permanent or portable, because they're built from ordinary building materials and function like real estate…

June 3, 2026
IL

Does an out-of-state dry-cleaning/repair company that only picks up and delivers items in Illinois -- with no office or warehouse there -- have to register and collect Illinois tax?

It depends on your numbers, not just your physical footprint: an out-of-state serviceperson with no Illinois office or warehouse can still have to register and collect Illinois tax once it hits $100,0…

June 3, 2026
IL

Did Illinois eliminate the 200-transaction economic nexus threshold for remote retailers, and how does the $100,000 threshold work?

Yes. Beginning January 1, 2026, Illinois dropped the 200-separate-transactions test for remote retailers; only the $100,000 cumulative gross receipts threshold, measured on a rolling 12-month lookback…

June 3, 2026
MO

Can a Missouri wholesale distributor accept an out-of-state customer's home-state resale certificate instead of a Missouri one when title to the goods passes in Missouri?

Yes. Missouri lets a seller accept a customer's out-of-state resale exemption certificate, as long as the seller takes it in good faith, because Missouri's resale exemption covers any purchase where t…

May 28, 2026
MO

If I report net capital gains on my federal return after subtracting my capital losses, and I also received short-term capital gain distributions from a mutual fund reported as ordinary dividends, can I increase my Missouri capital gains subtraction to add back the losses or to include the mutual fund distributions?

No to both. Missouri's capital gains subtraction only covers capital gains actually included in federal adjusted gross income (i.e., after netting against capital losses), and it doesn't extend to mut…

May 28, 2026
MO

Does a medical-record retrieval company have to charge Missouri sales tax when it electronically delivers copies of medical records to a law firm?

No. Missouri does not tax the electronic delivery of medical records because electronic documents are not tangible personal property, and Missouri sales tax only applies to sales of tangible personal …

May 28, 2026
MO

As a Canadian wholesaler of fabrics with no physical Missouri presence but sales over the state's economic nexus threshold, do I have to register, collect, and remit Missouri sales tax?

No, not as a wholesaler. A wholesaler selling for resale is not required to register, collect, or remit Missouri sales tax, even after exceeding the economic nexus threshold, because wholesale sales f…

May 28, 2026
MO

Does a mobile auto detailing business have to charge Missouri sales tax on its detailing service charges?

No. Missouri only taxes services that are specifically enumerated in Chapter 144, RSMo, and automobile detailing is not one of them, so charges for mobile detailing services are not subject to Missour…

May 28, 2026
MO

Is a software company that lets customers run online auctions and connect with third-party payment processors a 'Marketplace Facilitator' required to collect Missouri sales tax, even though it never touches the money?

No. Missouri ruled that a software/SaaS provider is not a Marketplace Facilitator because it never collects or transmits payments for the sales made on its platform -- customers pick their own third-p…

May 28, 2026
VA

Could Virginia disallow a resident's 2022 and 2024 Schedule C deductions when the taxpayer failed to provide the requested audit records?

Yes. Virginia may examine and adjust federal adjusted gross income when reported amounts appear inconsistent with federal law. Because the taxpayer supplied no support for the Schedule C deductions, b…

May 26, 2026
VA

Did Virginia consider the merits of a Schedule C assessment appeal received after the 90-day administrative deadline?

No. The assessments were issued October 22, 2025, making January 20, 2026 the final day for a timely appeal. The Department received the appeal on February 24, 2026, so the Tax Commissioner denied it …

May 26, 2026
VA

Could Virginia disallow resident taxpayers' 2024 Schedule C deductions when they failed to provide the requested audit records?

Yes. Virginia may examine and adjust federal adjusted gross income when reported amounts appear inconsistent with federal law. Because the taxpayers supplied no support for their Schedule C deductions…

May 26, 2026
VA

Could Virginia disallow a resident's 2022-2024 Schedule C deductions when the taxpayer failed to provide the requested audit records?

Yes. Virginia may examine and adjust federal adjusted gross income when reported amounts appear inconsistent with federal law. Because the taxpayer supplied no support for the Schedule C deductions, t…

May 26, 2026
VA

Can Virginia disallow federal Schedule C business-expense deductions and uphold an income tax assessment when a taxpayer under audit fails to provide documentation to support those deductions?

Yes. Just like the near-identical companion ruling P.D. 26-49, the Tax Commissioner upheld the Department's authority to disallow undocumented Schedule C deductions and adjust federal adjusted gross i…

May 26, 2026
VA

Can Virginia disallow federal Schedule C business-expense deductions and uphold an income tax assessment when a taxpayer under audit fails to provide documentation to support those deductions?

Yes. Just like the near-identical companion ruling P.D. 26-49, the Tax Commissioner upheld the Department's authority to disallow undocumented Schedule C deductions and adjust federal adjusted gross i…

May 26, 2026
VA

Can Virginia disallow federal Schedule C business-expense deductions and uphold an income tax assessment when a taxpayer under audit fails to provide documentation to support those deductions?

Yes. The Tax Commissioner upheld the Department's authority to examine and adjust federal adjusted gross income (FAGI), including Schedule C deductions, when the reported amounts cannot be verified, a…

May 26, 2026
VA

If I concede that the business I reported on Schedule C did not exist, can Virginia still uphold the assessment disallowing those deductions?

No -- Virginia is not bound by your federal Schedule C, and here there was nothing left to salvage. After the Department disallowed the taxpayer's 2022 through 2024 Schedule C deductions for lack of d…

May 26, 2026
VA

Is Virginia bound by my federal Schedule C, and who has the burden when the Department disallows my deductions on audit?

No -- Virginia is not bound by your federal Schedule C. This is one of a series of materially identical Virginia Schedule C desk-audit determinations. Here the Department disallowed the taxpayers' Sch…

May 26, 2026
VA

Is Virginia bound by my federal Schedule C, and who has the burden when the Department disallows my deductions on audit?

No -- Virginia is not bound by your federal Schedule C. This is one of a series of materially identical Virginia Schedule C desk-audit determinations. Here the Department disallowed the taxpayer's Sch…

May 26, 2026
VA

Is Virginia bound by my federal Schedule C, and who has the burden when the Department disallows my deductions on audit?

No -- Virginia is not bound by your federal Schedule C. This is one of a series of materially identical Virginia Schedule C desk-audit determinations. Here the Department disallowed the taxpayers' Sch…

May 26, 2026
VA

Is Virginia bound by my federal Schedule C, and who has the burden when the Department disallows my deductions on audit?

No -- Virginia is not bound by your federal Schedule C. This is one of a series of materially identical Virginia Schedule C desk-audit determinations. Here the Department disallowed the taxpayer's Sch…

May 26, 2026
VA

Is Virginia bound by my federal Schedule C, and who has the burden when the Department disallows my deductions on audit?

No -- Virginia is not bound by your federal Schedule C. This is one of a series of materially identical Virginia Schedule C desk-audit determinations. Here the Department disallowed the taxpayers' Sch…

May 26, 2026
VA

Is Virginia bound by my federal Schedule C, and who has the burden when the Department disallows my deductions on audit?

No -- Virginia is not bound by your federal Schedule C. The Department can examine and disallow Schedule C deductions on a Virginia return, and because an assessment is 'prima facie correct,' the taxp…

May 25, 2026
VA

Is Virginia bound by my federal Schedule C, and who has the burden when the Department disallows my deductions on audit?

No -- Virginia is not bound by your federal Schedule C. This is one of a series of materially identical Virginia Schedule C desk-audit determinations. Here the Department disallowed the taxpayers's Sc…

May 25, 2026
VA

Can Virginia disallow or adjust the Schedule C business deductions on my state return, and what happens if I don't give the auditor documentation?

Yes. Virginia can examine and disallow the federal Schedule C deductions on your state return; the taxpayers' argument that the Department has no authority over Schedule C was rejected. Because Virgin…

May 25, 2026
VA

Is Virginia bound by my federal Schedule C, and who has the burden when the Department disallows my deductions on audit?

No -- Virginia is not bound by your federal Schedule C. This is one of a series of materially identical Virginia Schedule C desk-audit determinations. Here the Department disallowed the taxpayer's Sch…

May 25, 2026
VA

Can Virginia disallow my Schedule C deductions on audit, and will it credit tax withheld from my wages that it added to my income?

Mostly no, but with a small win. Virginia is not bound by your federal Schedule C: the Department disallowed the taxpayer's 2022 through 2024 Schedule C deductions for lack of documentation, and becau…

May 25, 2026
VA

Is Virginia bound by my federal Schedule C, and who has the burden when the Department disallows my deductions on audit?

No -- Virginia is not bound by your federal Schedule C. This is one of a series of materially identical Virginia Schedule C desk-audit determinations. Here the Department disallowed the taxpayers's Sc…

May 25, 2026
VA

How long do I have to claim a Virginia individual income tax refund, and does relying on my accountant extend that deadline?

You have three years from the return's original due date to claim a Virginia income tax refund, and the deadline is strict. The Department denied a 2020 nonresident refund claim filed in June 2024 -- …

May 25, 2026
VA

When a Virginia dealer or marketplace facilitator sells to a government agency, what does it need to accept the ST-12 exemption certificate and not charge sales tax?

A Virginia dealer can sell tax-free to a federal, state, or local government buyer once it has EITHER a required official purchase order paid from public funds OR a properly completed, signed Form ST-…

May 25, 2026
VA

When does Virginia's 90-day deadline to appeal a tax assessment start, and does a later bill restart the clock?

Virginia strictly enforces a 90-day deadline to appeal a tax assessment, measured from the date on the official 'Notice of Assessment' -- not from a later consolidated bill or statement of balance due…

May 25, 2026
SC

Do candy and soft drinks stay exempt from South Carolina sales tax even though the state is removing them from SNAP eligibility?

Yes. South Carolina exempts unprepared food (groceries) from sales tax under S.C. Code Ann. § 12-36-2120(75). Effective August 31, 2026, South Carolina's Healthy Food SC demonstration project removes …

May 19, 2026
VA

As a combined Virginia filer, can I keep a large one-time gain from selling Virginia assets out of my apportionment factor by consolidating accounts or using an alternative apportionment method?

No. A multinational combined filer recognized a large gain when it sold a subsidiary's Virginia assets, spiking that subsidiary's Virginia sales factor. The Department refused both a Va. Code § 58.1-4…

May 19, 2026
KS

Are purchases by certain disabled veterans exempt from Kansas sales tax?

Yes, starting July 1, 2026. 2024 House Bill 2098 (now K.S.A. 79-3606h) exempts a qualifying disabled veteran's purchases of tangible personal property and services from Kansas sales tax — but NOT moto…

May 15, 2026
TN

Is a digital auction platform a 'marketplace facilitator' that must collect Tennessee sales tax on auctions run by its customers?

No. A company that only provides the auction software and hosting and never collects or transmits payment is not a 'marketplace facilitator' under Tennessee law, so it does not have to collect or remi…

May 13, 2026
VA

Is Virginia bound by my federal Schedule C, and who has the burden when the Department disallows my deductions on audit?

No -- Virginia is not bound by your federal Schedule C. This is one of a series of materially identical Virginia Schedule C desk-audit determinations. Here the Department disallowed the taxpayer's Sch…

May 11, 2026
VA

Is Virginia bound by my federal Schedule C, and who has the burden when the Department disallows my deductions on audit?

No -- Virginia is not bound by your federal Schedule C. This is one of a series of materially identical Virginia Schedule C desk-audit determinations. Here the Department disallowed the taxpayer's Sch…

May 11, 2026

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.