State Tax Rulings
Free state tax letter rulings and advisory opinions with plain-English summaries, full citations, and the original source on every page.
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Were the nonprofit's admission and membership fees exempt in Florida TAA 24A-011?
Yes. Florida concluded that admission and membership fees charged by the requesting Florida not-for-profit were exempt because the organization qualified as a section 501(c)(3) public charity.
My holding company is based in Virginia and performs executive functions for a subsidiary that has no office or employees in Virginia -- does that subsidiary owe Virginia BPOL tax just because its parent is here?
No -- BPOL tax is assessed on a separate-entity basis, so a subsidiary with no office or definite place of business in Virginia owes no BPOL tax there, even though its Virginia-based parent performs e…
How does Kansas treat business interest expense that federal law limits under Section 163(j)?
Kansas Notice 24-16 explains 2024 Senate Bill 410 (Section 18), which amended K.S.A. 79-32,117 to clarify how Kansas treats the federal business interest deduction limited under Internal Revenue Code …
Can a Manhattan parking garage satisfy New York's recordkeeping rules by giving customers electronic receipts and keeping digital records instead of paper?
Yes, if requirements are met. The Department concluded that a Manhattan parking garage MAY use a software app to issue electronic receipts and keep digital records instead of paper — provided the reco…
Are radiopharmaceuticals and contrast media used for diagnostic or therapeutic purposes taxed at Illinois's reduced 1% drug rate or the general 6.25% rate?
Radiopharmaceuticals and contrast media used for diagnostic purposes have no medicinal qualities and do not qualify for the reduced 1% rate, so they're taxed at the general 6.25% merchandise rate. The…
Is the electricity and natural gas a landlord buys for residential apartment buildings eligible for the reduced (zero) New York State sales tax rate, and how is eligibility established?
Eligible for the reduced State rate. The Department concluded that electricity and natural gas used for residential purposes in a landlord's apartment buildings qualify for the reduced (0%) State sale…
Do South Carolina students pay sales tax when they use their meal-plan 'flex dollars' to buy food on campus?
No — not on food. The Department treats board-plan 'flex dollars' the same as a traditional meal plan: students buy them from the university at the start of the term, and the balance is drawn down as …
My spouse is a deployed servicemember and I filed our Virginia income tax return late -- does the combat zone extension excuse my late-filing penalty, and what about interest and other penalties?
Partially -- the late-filing penalty was abated because of the combat zone extension, but other penalties and interest that accrued BEFORE the deployment began still applied. A taxpayer's husband, a m…
The Department said my company's R&D tax credit application was missing information and needed more time to fix it, but I never got the notice -- can I still get the credit if I submit the missing information after the deadline?
No -- the Nov. 15 completion deadline applies regardless of whether the taxpayer actually received the Department's notice about missing information. A corporation filed Form MRD to claim the Major Re…
The Department's audit used a sample year to estimate my sales/use tax liability across a six-year period -- can I challenge the sample year, and does new documentation I've since found reduce my bill?
The sample methodology itself was upheld, but new documentation the taxpayer found after the audit WAS credited, reducing the liability. A fiber optic cable installation and repair contractor was audi…
A commercial tax-guide publisher's annual survey request shows up in Illinois's letter-rulings archive under a normal ruling number -- does it actually contain any Illinois tax guidance?
No -- this isn't guidance to a taxpayer at all. It's the Department's brief GIL-format reply to a commercial publisher's (the Multistate Corporate Tax Guide's) annual survey of state tax law, and the …
When someone assumes an existing long-term car lease, is sales tax due again on the remaining payments even though the original lessee already prepaid all the lease's sales tax?
Taxable again. The Department concluded that when someone ASSUMES an existing long-term motor-vehicle lease, that assumption is a new, separate taxable sale — possession of the vehicle transfers to th…
Is a tree-and-shrub consulting/inspection service (inventory and health report) taxable in New York, or is it exempt when done as part of a capital improvement?
Taxable, with one exception. The Department concluded that a tree-and-shrub consulting service — inventorying trees/shrubs and producing a custom report on their species, condition, health, risk, and …
Is a personalized one-on-one astrological birth chart reading delivered online a taxable information service in New York?
Not taxable. The Department concluded that personalized, one-on-one astrological birth chart readings sold to premium customers are NOT a taxable information service under Tax Law § 1105(c)(1). Althou…
Are a veterinarian's purchases of blood products (red blood cells, plasma, cryoprecipitate) for use in surgery exempt from New York sales tax?
Exempt only for farm use. The Department concluded that a veterinarian's blood products (red blood cells, plasma, cryoprecipitate, cryopoor) are 'drugs and medicines' that are exempt from sales tax un…
Does a UK business owe New York sales tax on US motor parts that are consolidated by a New York entity before export, when the parts are bought for resale?
Exempt as resale. The Department concluded that a UK business buying US motor parts that are shipped to a New York entity for consolidation and export does make its purchases in New York — the consoli…
Is a labor-only service of moving a customer's own furniture from one spot to another within its premises subject to New York sales tax?
Not taxable. The Department concluded that a company providing only physical labor to move a customer's own furniture (tables, chairs) from one on-premises location to another — to help prepare for a …
Are an out-of-state bakery's pre-packaged brownies, cookies and bars taxable in New York, does a keepsake gift tin change that, and must it file returns even with no taxable sales?
Mixed. The Department concluded that an out-of-state bakery's pre-packaged, individually wrapped baked goods (brownies, cookies, bars) shipped unheated to New York customers are generally exempt food …
Is a prescription-only portable electrotherapy device (a TENS/muscle stimulator) exempt from New York sales tax as medical equipment?
Exempt. The Department concluded that the petitioner's Multi-Mode Stimulator — a prescription-only (FDA Class II) portable electrotherapy/TENS device used to treat pain, muscle spasms, and similar con…
Did a New York resident who bought a car in Maine (and paid Maine sales tax) owe New York use tax when she registered it in New York, with no credit for the Maine tax?
Use tax was due. The Department concluded that a New York resident who bought, registered, and paid sales tax on a vehicle in Maine still owed New York compensating use tax when she registered it in N…
Are sales and installation of custom interior storm-window inserts a tax-exempt capital improvement, or taxable installation of tangible personal property?
Taxable. The Department concluded that the petitioner's custom window inserts ('interior storm windows') are NOT a capital improvement, because they fail the second prong of the three-part test — they…
When a manufacturer sells goods to wholesale distributors that later resell them to end customers, does it source those sales to the distributors or to the final buyers for the Tennessee franchise and excise tax receipts factor?
Source to the distributors. The Department ruled that an out-of-state manufacturer must source its sales to the location of the wholesale distributors it sells to — not to the location of the end cust…
When a leased vehicle's driver moves, does the local motor vehicle sales tax rate follow them to their new address?
Yes. On a Missouri motor vehicle lease of more than 60 days where tax wasn't prepaid at signing, the local sales tax rate always follows the lessee's current address -- updating when they move within …
Does a car rental company have to charge sales tax on an optional Collision Damage Waiver?
No. Because the Collision Damage Waiver is optional -- renters can decline it and many do -- it isn't part of the taxable vehicle rental transaction and isn't subject to Missouri sales tax.
Does a Missouri company doing custom, one-off machining and laser work to each customer's own specifications qualify for the manufacturing exemption under Sections 144.030 or 144.054, RSMo?
No, under either statute. Because the company's machining and laser work is custom-made to each individual customer's own specifications, its output is not a "product" that could be marketed to variou…
Which charges for a web-based foreign-exchange trading platform are taxable as software, and which (support, secure tokens, benchmarking reports) are treated differently?
Mostly taxable. The Department concluded that the petitioner's web-based foreign-exchange trading platform is prewritten software, so its receipts for Annual License Fees, Transaction Charges, and mos…
Are chocolate-covered marshmallow twists candy or confectionery subject to New York sales tax, even if the package doesn't say 'candy' and they aren't a holiday shape?
Taxable. The Department concluded that the chocolate-covered marshmallow twists are candy and/or confectionery subject to New York State and local sales tax under Tax Law § 1105(a). Marshmallows alone…
How does the sales tax refund statute of limitations apply to a PrompTax filer — does filing the quarterly return within three years protect monthly PrompTax payments made earlier?
Time-barred. The Department concluded that a refund claim for overpaid sales tax cannot exceed the tax paid in the three years immediately before the claim was filed (Tax Law § 1139(c)). A PrompTax pa…
Is a company's service of driving railroad crews to their work sites subject to New York sales tax as a transportation service?
Taxable if intrastate. The Department concluded that a company hired by railroads to drive their employees to work sites provides a taxable 'transportation service' under Tax Law § 1105(c)(10) — its v…
Are managed cybersecurity offerings — network security monitoring and a cybersecurity advisory/consulting service — taxable in New York as protective services?
Taxable. The Department concluded that both of the petitioner's offerings — its network security monitoring service (NSMS) and its professional advisory service (PAS) — are taxable protective services…
Are energy-enhancing gels and chews packaged and labeled as dietary foods and health supplements subject to New York sales tax?
Exempt. The Department concluded that energy-enhancing gels and chews that are packaged, labeled and sold as dietary foods and health supplements are exempt from New York State and local sales and use…
Where is the sale of imported commercial lighting fixtures taxed when various carriers deliver them, and how are the receipts apportioned for corporation tax — when the fixtures are sold installed or uninstalled?
It depends on delivery and installation. For commercial lighting fixtures imported from Europe and sold WITHOUT installation, New York sales tax follows the destination/transfer point: delivery by com…
Can a private land developer building a new library and community center — which it will transfer to the county upon completion in a land-swap deal — issue a tax exemption certificate to its contractor for construction materials and services?
Yes. Texas ruled that even though the developer building the new library and community center is a private, non-exempt entity, its construction contract qualifies as an "exempt contract" because the p…
What South Carolina tax interest rate applies through September 30, 2024, and what rate is paid on eligible refunds?
The listed South Carolina interest rate for tax underpayments and overpayments is 8% for the period October 1, 2023 through September 30, 2024. Interest is compounded daily, except that simple interes…
Is a nonprofit's fee for accrediting third-party training centers taxable, and is the separate fee it charges those centers to maintain student certification records in its online repository taxable?
Split ruling. Texas held that a nonprofit's certification/accreditation service — reviewing and approving third-party training centers' courses, materials, and facilities — is not a taxable service. B…
Is the lump-sum membership fee for a business-coaching program for contractors — bundling consulting, a resource library, and a free SEO website — fully taxable when only part of what's included is a taxable service?
Yes, mostly. Texas ruled that a trade-contractor coaching membership's lump-sum signup and monthly fees are presumed fully taxable, because the bundle mixes nontaxable business consulting with taxable…
Can an oil-and-gas well-servicing consulting company exclude from its Texas franchise (margin) tax total revenue the payments it passes through to subcontractors?
Yes, partly. A company providing on-site consulting and supervision for oil-and-gas well completions and workovers can exclude from its Texas franchise tax total revenue the payments it passes through…
Are the sub-ballast, riprap, and culvert materials a contractor buys to build new railroad track and roadbeds in Texas exempt from sales tax as supplies essential to running trains?
Yes. Texas ruled that sub-ballast, riprap, and steel/precast culverts incorporated into new railroad track and roadbed construction are exempt from sales and use tax, because they're essential to the …
Is a residual referral fee a point-of-sale technology company earns from a credit card processor, for referring its retail/hospitality clients to that processor, subject to Texas sales tax?
No. Texas ruled that a point-of-sale technology company's residual referral fee — paid by a credit card processor as a cut of processing income for merchants the company referred — is not subject to s…
What interest rate does Nebraska charge on delinquent state taxes and special assessments for 2025 and 2026?
8% per year. For the two-year period January 1, 2025 through December 31, 2026, Nebraska charges 8% simple interest per year on delinquent payments of any state taxes or special assessments -- up from…
Why did Kansas update its 2024 withholding tax tables, and should I change my K-4?
Kansas Notice 24-06 explains that the Department updated its withholding tax tables to reflect the 2024 individual income tax changes made by 2024 Special Session Senate Bill 1 -- new tax rates (Secti…
Is a web portal that customers and applicants log into to prepare and process applications taxable as prewritten software, and are the related setup and support services taxable?
Mostly taxable. The Department concluded that charges to access and use the petitioner's web portal are the sale of prewritten software subject to sales tax (Tax Law § 1105(a), § 1101(b)(5)/(6)), beca…
Does a travel planner who organizes group trips for solo female travelers owe New York sales tax on her fee, and is the fee subject to personal income tax?
No sales tax, but yes income tax. The Department concluded that a New York resident's fees for travel planning and concierge services (organizing group trips for solo female travelers) are not subject…
Is a mobile and web analytics service — tracking users on a customer's site and showing the data in a dashboard — taxable in New York as software or as an information service?
Taxable. The Department concluded a mobile/web analytics platform is a taxable information service under Tax Law § 1105(c)(1) — not the sale of software — because the customer's primary purpose is to …
Can New Mexico assess me for gross receipts tax based on a criminal tax-fraud plea agreement and a restitution order?
Yes. After William Gardner pleaded no contest to two counts of tax fraud and agreed to pay $162,534.06 in restitution ($139,431.98 in unpaid tax plus $23,102.08 in interest), New Mexico could assess h…
When were the club dues exempt during Florida's 2023 Freedom Summer Sales Tax Holiday?
Club dues were exempt when paid from May 29 through September 4, 2023 for access beginning no earlier than May 29 and ending by December 31, 2023. The ruling applies to the historical 2023 holiday.
Are monthly or annual golf-club membership dues exempt from South Carolina admissions tax?
Yes. Monthly and annual membership dues paid to a golf club on or after May 13, 2024 are exempt from South Carolina's 5% state admissions tax. The exemption does not cover green fees, driving-range fe…
I bought equipment to test my manufactured products for quality control before final assembly -- does that equipment qualify for Virginia's manufacturing sales tax exemption?
Yes -- because the testing happened DURING the manufacturing process, before final assembly, not afterward. A manufacturer of electronic telecommunications components requested a refund of sales tax p…
We claimed itemized deductions for property taxes, mortgage interest, and charitable donations, but got audited and lost the deductions -- can we keep our refunds since we didn't know we needed appraisals for donations over $5,000?
No -- not knowing about the documentation requirements doesn't excuse a taxpayer from Virginia's substantiation rules, and each itemized deduction category requires its own specific proof (tax bills a…
I have a general ledger and trial balance showing my company overpaid sales and use tax due to an accounting error -- is that enough documentation to get a refund?
No -- summary-level general ledger and trial balance data isn't enough on its own; Virginia requires transaction-level documentation to support a refund. A manufacturer of medical devices sought a ref…
My subsidiary was already filing separate Virginia returns, and now our parent company has to start filing too -- do we need the Department's permission to file a combined return together?
No -- permission isn't required in the group's first full taxable year of required Virginia filing, even if the subsidiary was already filing separate returns. A corporation asked the Department for p…
Who qualifies for South Carolina's Tuition Tax Credit, and how is the refundable credit calculated?
A qualifying student at an eligible South Carolina institution may generate a refundable individual income tax credit equal to 50% of qualifying tuition paid during the tax year, capped at $1,500 per …
Did Florida TAA 24A-009 exempt research and development expenditures for engineered attractions?
Yes. Florida concluded that the described engineered-attraction R&D expenditures qualified under section 212.052 when they strictly complied with that statute and Rule 12A-1.043(6).
Does a company have to charge Colorado sales tax on DNA-based ancestry and health reports and the saliva kits it sends customers — and does the company owe use tax on those kits itself?
Two answers. The DNA ancestry and health-history reports — and the saliva collection kits sold to customers to produce them — are NOT subject to Colorado sales tax, because the customer's 'true object…
What tax credit does the Kansas Pregnancy Resource Act give for donations to pregnancy centers?
Kansas Notice 24-14 explains the Pregnancy Resource Act, created by 2024 House Bill 2465. For tax years beginning after December 31, 2023, a taxpayer may claim a credit equal to 70% of contributions m…
Is equipment used to provide internet, phone, or video service exempt from Kansas sales tax?
Kansas Notice 24-13 explains a sales tax exemption created by 2024 House Bill 2098, which amended K.S.A. 79-3606 to add subsection (uuuu). It exempts (A) all sales of equipment, machinery, software, a…
Is custom slaughtering and processing of an animal for the owner's own use exempt from Kansas sales tax?
Kansas Notice 24-12 explains a sales tax exemption created by 2024 House Bill 2098, which amended K.S.A. 79-3606 to add subsection (rrrr). It exempts all sales of the services of slaughtering, butcher…
What are the new Kansas privilege tax rates for banks starting in tax year 2024?
Kansas Notice 24-11 explains privilege tax rate cuts made by 2024 Special Session Senate Bill 1, Sections 12 and 13, which amended K.S.A. 79-1107 and K.S.A. 79-1108. For tax year 2024 and all years af…
How did 2024 changes affect who qualifies for the Kansas homestead property tax refund?
Kansas Notice 24-10 explains changes to the Kansas homestead property tax refund program (K.S.A. 79-4501 et seq.) made by 2024 House Bill 2760, a broader veterans-and-military bill. Section 74 amended…
How much is the Kansas child and dependent care tax credit for 2024?
Kansas Notice 24-09 explains an increase to the Kansas child and dependent care credit made by 2024 Special Session Senate Bill 1, Section 17, which amended K.S.A. 79-32,111c. The Kansas credit had eq…
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