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.
Were concert admissions and ticket-handling fees exempt when a 501(c)(3) arts organization supplied performers but a state college partner sold and processed the tickets?
No. The Department treated both the admissions and associated handling fees as taxable because the partner operating the theater—not the 501(c)(3) arts organization—imposed and processed the charges. …
Is a nonprofit's sale of digital exams, assessments, and study materials to schools, professional associations, and individual students/examinees subject to Illinois sales tax?
No. The Department found these digital assessments, licensing exams, and study materials are non-taxable personal/professional services (not tangible personal property or taxable digital goods), so sa…
Is a company's purchase of another company's business assets, arranged through a private broker rather than through the broker's internet auction, subject to Illinois Retailers' Occupation (sales) Tax, or does it qualify for the occasional sale exemption?
The purchase qualified for Illinois's occasional sale exemption and was not subject to Retailers' Occupation Tax. The Department ruled that because the sale of the seller's business assets was negotia…
Can a New Mexico dialysis provider (an end-stage renal disease facility) claim the Section 7-9-93 gross receipts deduction for managed-care payments?
Yes. The Administrative Hearings Office granted summary judgment to the taxpayers and reversed the Department's refund denials. ISD Renal, Inc. and Total Renal Care, Inc. — DaVita subsidiaries that op…
In a true operating lease of a utility trailer registered in Illinois, is sales/use tax based on the price the lessor paid the dealer, or on the total lease payments the lessor expects to collect from the lessee?
Illinois bases the tax on the price the lessor paid the dealer, not on the total lease payments. Under a true lease, the lessor is treated as the end user of the trailer and owes Use Tax only on its o…
Can a nonprofit still sell tax-exempt concert tickets under Texas's amusement-services exemption if it hires a for-profit company to produce and promote the events?
Yes. A 501(c)(3) nonprofit's concert ticket sales remain exempt from Texas sales and use tax even when it hires a for-profit company to promote and produce the events, as long as the nonprofit holds i…
Were rentals of a Sysmex CS-2500 blood-coagulation analyzer and a Coulter DxH 800 hematology analyzer exempt from Florida sales tax as medical test kits?
No. The Department treated the two large clinical analyzers as equipment rather than qualifying test kits. Although the administrative rule mentions blood analyzers, the Department read that term with…
Were a court-appointed receiver's purchases for closing a contaminated former fertilizer facility exempt as pollution-control equipment or government purchases?
No. The purchases were for cleanup and closure after manufacturing had ended, and the receiver—not the government—bought the items and sought reimbursement.
Can I subtract my National Guard pay and basic military pay from Virginia taxable income if my W-2 was issued under a reserve-unit employer ID number?
Yes, potentially -- Virginia's subtraction for Virginia National Guard pay, capped at 39 days' pay or $3,000 and limited to captain (O-3) and below, can still apply even if your W-2 was issued through…
If my spouse moves to another state and I stay in Virginia until later in the year, do we file as Virginia residents, part-year residents, or nonresidents?
It depends on each spouse's own facts -- spouses can have different domicile outcomes in the same year. Here, the wife successfully proved she'd abandoned Virginia domicile despite keeping (but never …
If I graduate from a Virginia college, move away for a job, but forget to update my driver's license and vehicle registration, have I still changed my domicile away from Virginia?
Yes, potentially -- the Department found that a recent college graduate had genuinely abandoned Virginia domicile and established a new one in the state where he took his first job, even though he sti…
If I owned a home, held a driver's license, and voted in Virginia for decades before moving to another state for part of the year, can I still claim I abandoned my Virginia domicile?
Generally no -- when a taxpayer's Virginia home ownership, driver's license, and voter registration all predate any time spent in the other state, the Department treats him as already domiciled in Vir…
Could Roswell Hospital Corporation claim New Mexico's practitioner deductions for hospital gross receipts?
No. The Administrative Hearings Office granted summary judgment to the Department and denied Roswell Hospital Corporation's protest of a $1,600,006 gross receipts tax refund denial for 2013–2014. The …
Can a New Mexico hospital deduct receipts under the health-care-practitioner provisions in Sections 7-9-93 or 7-9-77.1?
No. The Administrative Hearings Office granted summary judgment to the Department and denied Roswell Clinic Corporation's refund protest. Roswell Clinic, treated as a hospital in the coordinated cases…
Were sales of a prescription-labeled, single-patient, nonreusable medical product to Florida hospitals exempt from sales tax?
Yes. The product was exempt because it carried an Rx-only label, was intended for one patient, and was not reusable.
If I rent inflatable party equipment with an attendant, or rent to a church, is the rental exempt from Virginia sales tax?
No on both counts here -- providing an attendant to monitor an inflatable for safety doesn't change the true object of the transaction, which remains the rental of tangible personal property, because …
Does Virginia's agricultural sales tax exemption cover the construction materials and equipment for an indoor, hydroponic vertical farm?
Only partly, and it depends item-by-item on whether the property becomes a permanent part of the building or stays independent tangible personal property. Virginia's agricultural production exemption …
Will Virginia accept a late Farm Wineries and Vineyards Tax Credit application if the delay was caused by COVID-19?
No -- Virginia's capped Farm Wineries and Vineyards Tax Credit has a hard April 1 filing deadline, and the Department has consistently held that hard deadlines for capped credits must be enforced with…
Can I get a Virginia refund-denial determination reconsidered if I still think the Department misapplied its own policy, without new facts or a change in law?
Not just by re-arguing your original position -- Virginia's reconsideration process under 23 VAC 10-20-165 F requires showing one of four specific things: misstated facts, a change in law, a misapplie…
If my Virginia tax credit application arrives late and has no postmark, can I rely on my own statement that I mailed it on time?
No -- Virginia's Form RDC instructions specifically state that when an application has no postmark, the Department uses the date it actually received the application to determine timeliness, and a tax…
Could Lea Regional Hospital claim New Mexico's practitioner deductions for its hospital gross receipts?
No. The Administrative Hearings Office granted summary judgment to the Department and denied Lea Regional Hospital's refund protests. The 2013–2015 claims involved denials of $938,140 and $563,338 and…
When a retailer sells grass seed, erosion-control blankets, and fertilizer to a construction contractor holding a DR 0163 exempt certificate, which of those are exempt from Colorado sales tax as construction and building materials?
It depends on the item. Grass seed and erosion-control blankets ARE exempt as construction and building materials when sold to a contractor who presents a current Contractor's Exempt Certificate (DR 0…
Can a New Mexico hospital claim the gross receipts tax deductions for health-care services (Sections 7-9-93 and 7-9-77.1)?
No — the protest was denied. Mimbres Memorial Hospital/Nursing Home claimed refunds of gross receipts tax for 2013–2015, arguing it could take the deductions in Section 7-9-93 (payments from managed-c…
Could Carlsbad Medical Center use New Mexico's practitioner deductions to recover gross receipts tax paid on hospital revenue?
No. The Administrative Hearings Office granted summary judgment to the Department and denied Carlsbad Medical Center's consolidated refund protests. The hospital sought refunds of $1,738,000 for 2013–…
Could Alta Vista Regional Hospital use New Mexico's practitioner deductions to recover gross receipts tax?
No. In the lead case for a group of coordinated hospital protests, the Administrative Hearings Office granted summary judgment to the Department and denied Alta Vista Regional Hospital's refund claims…
Once Virginia's DEQ certifies equipment as pollution control equipment, can the Department of Taxation still deny the sales tax exemption, or does the length of use matter?
No, the Department cannot second-guess a valid DEQ certification -- once the Virginia Department of Environmental Quality certifies specific tangible personal property as pollution control equipment u…
If my corporation's subsidiaries all become disregarded entities and it's no longer part of an affiliated group, do I need Department permission to switch from consolidated to separate Virginia filing?
No -- Virginia's rule requiring Department permission to change filing status only applies to a corporation that remains part of an affiliated group; once a corporation's subsidiaries all become disre…
If I claim I was a victim of identity theft, does that excuse me from having to document deductions the Department questions in an audit?
No -- an unsubstantiated claim of identity theft, fraud, or misrepresentation is not by itself a basis for the Department to adjust an assessment; the taxpayer still has to show how the identity theft…
Can Virginia treat all of a company's sales staff as employees for withholding tax purposes just because the IRS issued a Form SS-8 determination finding one of them was an employee?
No -- an IRS Form SS-8 determination is binding only on the IRS and only as to the specific worker (or class of workers) who requested it, and it isn't legally binding on the Virginia Department of Ta…
If Virginia denies my refund request for tax paid on DEQ-certified pollution control equipment because of restrictions in a Department cover letter, can I win that denial on appeal?
Yes -- on the same day it issued a companion ruling for this taxpayer, the Department reversed a refund denial that had relied on restrictive cover-letter language in a 'Notice of Sales Tax Exemption,…
Does Virginia's pollution control equipment sales tax exemption still apply if the certified equipment is rented, or doesn't stay permanently with the project?
Yes -- the Department confirmed that once DEQ certifies specific property as pollution control equipment, restrictions in the Department's own 'Notice of Sales Tax Exemption' cover letter -- like lang…
Are a video-conferencing/telecom company's lump-sum charges for remote support, on-site maintenance, and infrastructure add-on services taxable in Texas?
Yes, all three lump-sum service charges are taxable. Remote Services are taxable because they include telecommunications services (and possibly software repair); On-Site Services are taxable as repair…
Can a Virginia city impose BPOL license tax on a contractor's gross receipts from services performed entirely on a federal military base located within the city?
Yes -- under the federal Buck Act, a locality retains authority to impose its BPOL tax on gross receipts from services performed entirely on federal property (like a military base) that lies within th…
Does a home décor store that sells a small selection of packaged snacks have to collect Virginia's disposable plastic bag tax?
No -- Virginia's five-cent disposable plastic bag tax applies only to retailers that qualify as grocery stores, convenience stores, or drugstores under definitions borrowed from the state's alcoholic …
Can I get a Virginia responsible-officer assessment reconsidered by changing my story about how much of the company I owned, or by asking the Department to waive interest that built up during my appeal?
No to both -- reconsideration requires showing one of four specific grounds (misstated facts, changed law, misapplied policy, or new evidence), and a taxpayer who tries to walk back a fact she herself…
If my subsidiary is licensed as a surplus lines insurance broker but doesn't actually owe any insurance premiums tax, can it still be included in our combined Virginia corporate income tax return?
Yes, generally -- Virginia's corporate income tax exemption for insurance companies only exempts a company 'to the extent' it's actually subject to the separate insurance premiums license tax; simply …
If my store doesn't keep detailed sales records, can I dispute the Department's estimate of my taxable sales just by asserting my own different percentage?
No -- once a dealer fails to keep the sales and inventory records required by law, the Department is authorized to issue an estimated assessment based on the best information available, and that estim…
Is a separately stated fuel surcharge on a product sale invoice exempt from Missouri sales tax the same way a separately stated delivery charge is?
YES, the fuel surcharge is taxable -- even though it is stated separately on the invoice, Missouri law only excludes 'usual and customary delivery charges' from taxable gross receipts, and a mandatory…
Does a dental practice have to charge sales tax on teeth-whitening gel refills it gives patients to use at home?
YES. Applicant, a dental practice, must charge sales tax when it issues teeth-whitening gel refills to patients, because the patients apply the gel themselves at home without a licensed dentist's supe…
Is splicing tape that a drywall manufacturer uses to bond rolls of material together during production subject to Missouri sales or use tax?
NO for state tax and local use tax -- Applicant's purchases of splicing tape used to bond rolls of drywall material together during continuous production are exempt as materials 'used and consumed in …
Can a subcontractor use a Form 149 exemption certificate to buy materials tax-free because the work is ultimately for the U.S. Government?
NO. A subcontractor's purchases of materials used in work performed for a Government Contractor are NOT exempt from Missouri sales tax, even with a Form 149 marked 'purchases on behalf of the U.S. Gov…
Does an out-of-state business that sells and installs window coverings in Missouri have to charge its customers sales tax, and does it owe use tax on the materials it installs?
IT DEPENDS ON WHICH TAX: Applicant should NOT charge its Missouri customers sales tax on window coverings, because the blinds, shades, and shutters become part of the customer's real property once ins…
Is a Missouri farmer's purchase of a high tunnel (a temporary, movable greenhouse-like structure) from a farm and feed store subject to Missouri sales tax?
NO. The Missouri Department of Revenue ruled that Applicant's purchase of a high tunnel from a Missouri farm and feed store is not subject to sales tax, so long as the high tunnel is used for any agri…
Does a political subdivision that runs riverboat excursion tours have to charge Missouri sales tax on its ticket prices, and on its onboard food and souvenir sales?
IT DEPENDS ON WHAT'S BEING SOLD: The Applicant's ticket fees and charges for riverboat tours, cruises, and charters are NOT taxable, because Section 144.030.2(17), RSMo, exempts admission fees to a pl…
Can I recover attorney fees after New Mexico fully abates a gross receipts tax assessment it knowingly issued to the wrong spouse?
Yes. The Administrative Hearings Office awarded Harry Barnes $3,451.66 in administrative and attorney costs after the Department fully abated a $17,258.28 gross receipts tax assessment issued to him. …
Is prescription pet food exempt from Virginia sales tax, and does a veterinarian have to pay sales tax when buying it to dispense to patients?
Yes -- prescription pet food, food sold directly by a veterinarian or purchased from a third party with a veterinarian's prescription to treat a diagnosed condition, is treated as an exempt prescripti…
How did Florida's 2022-2024 sales-tax exemption apply to impact-resistant windows, doors, integrated parts, contractors, and order timing?
Integrated parts qualified only when sold with the impact-resistant unit for one charge. Contractor purchases counted as retail sales, and timing depended on when the right to possession arose.
What are South Carolina's state and county per capita income figures used for tax incentive qualification, per SC Information Letter #22-24?
South Carolina's state per capita personal income figure is $52,467, and SC Information Letter #22-24 also publishes the per capita income figure for each South Carolina county. The Department publish…
What are South Carolina's 2023 county tier rankings for the job tax credit, and which counties qualify for the tax moratorium and reduced fee-in-lieu investment?
SC Information Letter #22-23 sets the 2023 county rankings that drive several South Carolina incentives. For the job tax credit, all 46 counties are ranked into four tiers (Tier IV counties are the mo…
What is the Kansas SALT Parity Act and how does the pass-through entity tax election work?
Kansas Notice 22-16 explains the SALT Parity Act, created by 2022 House Bill 2239 (New Sections 1-6), effective for tax year 2022 and after. It lets certain pass-through entities -- S corporations and…
What is the Kansas Targeted Employment Act credit for hiring people with developmental disabilities?
Kansas Notice 22-14 explains the Kansas Targeted Employment Act, created by 2022 House Bill 2703 (New Sections 1-6). For tax years 2022 through 2027, a "targeted employment business" -- an employer au…
Can a licensed distributor sell dyed diesel fuel tax-free to a rental company that fuels non-highway equipment it rents out, without verifying how the rental company bills or resells the fuel?
Generally yes. A rental company that rents out machinery, equipment, and vehicles for non-highway use and burns dyed diesel fuel in them is treated as the fuel's end user, so a distributor or supplier…
Do flights an aircraft owner takes on their own plane, operated under an FAA Part 135 air carrier certificate, count toward the 50% trips-or-miles threshold needed to qualify the aircraft for Illinois's rolling stock exemption?
Yes. If a Part 135 air carrier carries persons or property for hire in interstate commerce, including flights for the aircraft's own owner or lessee under an arm's-length management agreement, that op…
What is South Carolina's tax interest rate for underpayments and overpayments for the period beginning January 1, 2023 (per SC IL #22-22)?
7%. SC Information Letter #22-22 sets South Carolina's interest rate on tax underpayments and overpayments at 7% for the period January 1, 2023 through March 31, 2023, up from 6% for the prior period …
Does Louisiana state sales tax apply to electricity sold at an electric-vehicle charging station and to a separately stated idle-time fee?
The charging-station electricity is taxable as a retail sale of tangible personal property. The station owner may buy the electricity for resale, while a separately stated idle-time fee is not subject…
Must an irrevocable trust file an Illinois Form IL-1041 if its trustee and beneficiaries have all moved out of Illinois?
Yes, the trust must file. Under IITA Section 1501(a)(20)(D), a trust is an Illinois resident trust if its grantor was domiciled in Illinois at the time the trust became irrevocable -- that fact alone …
Does a company that sells software as a service (SaaS), digital goods, and in-game purchases have to collect Illinois Retailers' Occupation Tax, Use Tax, or Service Occupation Tax?
Generally no. A provider of software as a service (SaaS) is acting as a "serviceman," and if it does not transfer any tangible personal property to the customer, the transaction generally is not subje…
Are the custodian, authorization, and copy fees a medical-records retrieval company charges attorneys and insurers for litigation-related records subject to Texas sales tax?
It depends on the fee type. Custodian fees (reimbursing what the medical provider charged) and authorization fees (the retrieval company's own service charge) are NOT taxable. Copy fees for tasks like…
How much is Kansas cutting the state sales tax on food, and what food qualifies?
Kansas Notice 22-15 explains the phased reduction of the state sales and compensating use tax rate on food and food ingredients, enacted by 2022 House Bill 2106. The state rate, currently 6.5%, drops …
How much of a South Carolina manufacturer's property is exempt from property tax under the manufacturing partial exemption, who qualifies, and how is it claimed?
South Carolina exempts 42.8571% of the property tax VALUE of manufacturing property that is assessed at the 10.5% ratio under Code Section 12-43-220(a)(1), effective for property tax years beginning a…
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.