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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Did secured and unsecured revolving credit agreements owe documentary stamp or nonrecurring intangible tax at execution?
No. Neither agreement fixed an absolute amount due when signed, so documentary stamp tax did not apply. Neither was secured by Florida real property, so nonrecurring intangible tax also did not apply.
If a Kansas business adds a credit or debit card processing fee to a taxable service, is that fee subject to sales tax?
Yes. A line-item credit or debit card processing fee a retailer adds to a customer's bill is part of the taxable selling price and is taxed whenever the underlying goods or services are taxed (K.A.R. …
Could a medical-supplies retailer remove sampled untaxed sales because the customer later self-assessed and paid Virginia use tax?
No. The sample measured the retailer's own duty to collect and report sales tax, not the combined compliance of the retailer and its customers. Removing sampled transactions merely because one custome…
Did using a customer's nine-digit FEIN instead of Virginia's full registration number invalidate an otherwise complete Form ST-10?
No. Virginia accepted the Form ST-10 because it was correct in every other respect and the Department's 15-digit registration number included the customer's nine-digit FEIN. Certificates obtained afte…
Which exemption certificates and separately charged services could a food-service-equipment dealer remove from its Virginia sales-tax audit?
Virginia ordered substantial audit revisions. Most updated resale certificates were accepted; an otherwise complete certificate using the customer's FEIN and another with a verifiable partial registra…
When is South Carolina's 2013 sales tax holiday and what items are exempt (per SC IL #13-13)?
South Carolina's 2013 sales tax holiday runs from 12:01 a.m. Friday, August 2, 2013 through midnight Sunday, August 4, 2013. During that three-day weekend, the 6% state sales and use tax and any appli…
Could a satellite-equipment retailer buy equipment tax-free for resale and sell it tax-free to a satellite-programming provider?
The retailer could continue buying satellite equipment exempt for resale, but it had to collect Virginia tax on future sales to the satellite-programming provider because the provider was the taxable …
Could a manufacturer reduce 2008-2010 local machinery-and-tools tax for equipment it said was disposed of or idle after a foundry closure?
Only partly. The 2008 amended return was filed after the statutory deadline and remained barred. For 2009 and 2010, however, Virginia found that the manufacturer might have enough evidence to show tha…
Was a restaurant's shareholder-president personally liable for converted sales, withholding, and litter-tax assessments despite blaming the general manager?
Yes. Even if the general manager could also be responsible, Virginia could convert the same corporate liabilities to more than one person. The president attended collection hearings, accepted responsi…
Could a textile-services company change its sales-tax sample because a customer proved it had self-assessed and paid use tax?
Virginia would not recalculate the sample, because the seller's collection duty did not depend on whether a customer later paid use tax and similar untaxed sales outside the sample might remain unpaid…
Could a vending-and-kiosk retailer overturn Virginia use tax by asserting that vending payments were for services and kiosk payments included tax?
No. The retailer supplied no contracts or other records proving that its vending-machine payments bought exempt services rather than taxable property, so it could not satisfy the true-object test. Its…
Did a hotel prove that Virginia's Invoice Capture Tool used the wrong sample population, gross-up, or exception total in its audit?
No. The auditor removed offsetting positive and negative transactions over $20,000 and, under Department policy, excluded the remaining negative transactions from the Invoice Capture Tool population. …
Should a young company calculate Virginia's R&D credit fixed-base percentage using every prior year it was in business or only years it operated in Virginia?
Use every applicable prior taxable year the company was in business, not only the years it operated in Virginia. The company had been in business in 2010 and 2011 but operated in Virginia only in 2011…
What major Virginia state and local tax changes did the Department of Taxation identify in its 2013 Legislative Summary?
Virginia's 2013 Legislative Summary was a broad historical reference guide, not a taxpayer ruling. Major changes included electronic employer-withholding filing, IRC conformity through January 2, 2013…
Who qualified for Virginia's 2013 Port Volume Increase Tax Credit, how was it calculated, and how did taxpayers apply?
Under these historical guidelines, an agricultural, manufacturing-related, or mineral-and-gas entity generally had to own the cargo, use a Virginia port, and increase cargo volume at least 5% over its…
What did Virginia's July 2013 Insurance Premiums License Tax guidelines require after administration moved from the SCC to the Tax Department?
For taxable years beginning in 2013, the Virginia Department of Taxation took over Insurance Premiums License Tax reports, payments, billing, collections, and audits, while the SCC's Bureau of Insuran…
Did a corporation substantiate a Virginia foreign-source-income subtraction through its protective refund claim and federal Form 1118?
No. The protective claim did not state the refund amount or supply the requested evidence identifying and substantiating qualifying foreign-source income. Form 1118 showed allocable deductions exceedi…
Could an unregistered equipment seller replace Virginia's estimates for product sales and technician equipment with documented actual amounts?
Partly. Virginia allowed the company 45 days to document its actual Virginia product sales and any sales or use tax properly paid to another state on equipment used by technicians. Verified records co…
Were separately charged computer setup and configuration services exempt installation labor in Virginia?
Yes, within the ruling's limits. Unpacking and positioning a computer, attaching peripherals, loading customer-ordered off-the-shelf software, adjusting network connections, checking compatibility, an…
What did Virginia's motor-vehicle-rental tax guidelines require after the July 1, 2013 amendments?
Under these historical guidelines, most passenger-vehicle rentals for less than 12 months carried a combined 10% tax and fee. Beginning July 1, 2013, specified charges—including fines, delivery and pi…
What did the 2013 legislation change for the Kansas mineral severance tax?
Kansas Notice 13-15 (July 1, 2013) summarizes 2013 mineral severance tax changes from House Bill 2059 and House Substitute for Senate Bill 83. Section 13 of HB 2059 amended the definition of 'gas' in …
What are the Kansas standard deduction amounts for 2013 and later?
Kansas Notice 13-14 (July 1, 2013), which replaces the revoked Notice 12-10, explains that Section 11 of 2013 House Bill 2059 amended K.S.A. 2012 Supp. 79-32,119 to reduce the standard deduction incre…
Which counties were added to the Rural Opportunity Zone program in 2013?
Kansas Notice 13-13 (July 1, 2013) explains that Section 9 of 2013 House Bill 2059 amended K.S.A. 2012 Supp. 74-50,222 to expand the Rural Opportunity Zone (ROZ) program, which began with 2011 Senate …
What replaced the Kansas food sales tax refund starting in 2013?
Kansas Notice 13-12 (July 1, 2013) explains that the food sales tax refund (K.S.A. 79-3633 through 79-3639) was repealed effective for tax year 2013 by 2012 Senate Substitute for House Bill 2117, and …
How are Kansas itemized deductions phased down starting in 2013?
Kansas Notice 13-11 (July 1, 2013), which replaces the revoked Notice 12-07, explains that 2013 House Substitute for Senate Bill 83 and House Bill 2059 confirmed individuals may elect Kansas itemized …
How did Kansas lower individual income tax rates starting in 2013?
Kansas Notice 13-10 (July 1, 2013), which replaces the revoked Notice 12-06, explains that Section 1 of 2013 House Bill 2059 amended K.S.A. 79-32,110 to lower individual income tax rates at all levels…
What tax changes did the 2013 Kansas abortion law (HB 2253) make?
Kansas Notice 13-03 explains the tax provisions of 2013 House Bill 2253, all effective for tax years commencing after December 31, 2013. Although New Section 2 declares (effective July 1, 2013) that l…
How can taxpayers check whether an older South Carolina advisory opinion was modified or superseded (per SC IL #13-12)?
Use the citator attached to SC Information Letter #13-12. It helps you determine what effect newer South Carolina advisory opinions have on previously published ones — whether an opinion was modified,…
Are payments for leased residential solar panels subject to Louisiana lease tax?
Yes, under the installation facts in the ruling. Removable roof- or ground-mounted panels were movable property, so lease payments and the assigned tax credit were taxable consideration.
Could a California domiciliary who became a Virginia actual resident for part of 2010 claim a Virginia credit for California tax or other states' tax?
She could not claim a Virginia credit for tax paid to California, her domiciliary state, on the 2010 part-year return. Virginia's policy expected California to grant the resident credit for Virginia t…
Could a building-supply wholesaler obtain further Virginia audit relief with a resale certificate missing an address and a later manufacturer certificate?
Yes, conditionally. Virginia removed sales supported by a Form ST-10 whose missing customer address was corroborated by business-license information and Department records, while warning that future i…
Could a manufacturer sell an FDA-approved prescription copper IUD tax-free to specified licensed medical professionals for use in their practices?
Yes. The FDA classified the copper IUD as a prescription drug, and the Virginia Board of Pharmacy treated it as a Schedule VI controlled substance. Virginia therefore allowed the manufacturer to sell …
Did Illinois's residence presumption compare Illinois days with each other state separately or with all other-state days combined?
Each state was compared separately. A person who was an Illinois resident in the prior year and then spent 160 days in Illinois, 150 in Florida, and 55 in Wisconsin was presumed to remain an Illinois …
What is South Carolina's tax interest rate for the period ending September 30, 2013 (per SC IL #13-11)?
3%. SC Information Letter #13-11 sets South Carolina's interest rate on tax underpayments and overpayments at 3% for the period October 1, 2011 through September 30, 2013. Interest is compounded daily…
Were a husband and wife Virginia domiciliaries in 2009 because the husband retained and renewed a Virginia driver's license?
No. The wife was continuously domiciled in State A. The husband had abandoned Virginia and established State A domicile in 2005 through indefinite employment, a permanent home, and resident returns. A…
Did taxpayers substantiate disallowed 2011 deductions for medical expenses, charitable gifts, and employee business expenses?
Not yet. Even after some additional medical proof, the revised expenses did not exceed the 2011 threshold of 7.5% of federal adjusted gross income. Charitable claims lacked required records, duplicate…
Were lumber and plywood placed in grain containers and equipment used mainly to dredge interstate waterways exempt from Virginia use tax?
Yes. The lumber and plywood were not qualifying packaging or transportation devices, but they were nonreturnable items resold to customers and therefore qualified under the resale exemption. The compa…
Is the Kansas liquor drink tax owed on free alcohol samples served by clubs and drinking establishments?
Kansas Notice 13-09 explains that 2013 House Bill 2199 (effective July 1, 2013) authorizes Class A clubs, Class B clubs, drinking establishments, hotels, and DE/Caterer and Hotel/Caterer licensees to …
When a company contracts for blocks of hotel rooms for its employees, how does Tennessee's 90-day continuous-occupancy exemption work — does it matter which employees or which rooms, and how does the hotel get the tax back?
Tennessee sales tax does not apply to hotel rooms supplied to the same person for 90 or more continuous days (Tenn. Code Ann. § 67-6-205(c)(1)), and the Department explained how that works for a compa…
Were a commercial printer's mailing-list, campaign, and mail-preparation functions a separate BPOL-taxable service business?
No. Nearly every mailing-services customer also bought a printed product from the taxpayer, and combining the services made the printing business more convenient and attractive. The mailing functions …
Did a trial court's reduced restitution order prevent Virginia from collecting the remaining tax, interest, and 100% fraud penalty?
No. Criminal restitution was part of sentencing and did not replace Virginia's separate civil authority to assess all unpaid tax, interest, and the statutory 100% fraud penalty. The taxpayers entered …
Did a taxpayer disprove Virginia's 2005-2010 estimated assessments by claiming another-state residence and denying Virginia rental income?
No. The taxpayer showed an abode and vehicle in another state, but he kept a Virginia post-office box, renewed a Virginia driver's license in 2010, and was linked to multiple Virginia properties. He d…
Can Kansas motor fuel tax be refunded on diesel burned in a truck's diesel particulate filter 'regeneration' cycle?
No. Kansas motor fuel tax paid on diesel consumed in a diesel particulate filter's 'regeneration' cycle is not refundable. K.S.A. 79-3453 refunds fuel tax on fuel used 'for any purpose other than oper…
How must a consolidated corporation calculate income and tax generated by a qualifying project for Florida's Capital Investment Tax Credit?
Use a project-only pro forma income statement under GAAP and Florida taxable-income rules, apportion that income using only project-related factors, and apply the 5.5 percent corporate tax rate to det…
Were deeds, a third-party mortgage and note, and the secured obligation exempt when executed under a confirmed Chapter 11 plan?
Yes. The deeds and financing documents were executed after confirmation and were necessary to consummate the Chapter 11 plan, so documentary stamp and nonrecurring intangible taxes did not apply on th…
Can an Illinois software reseller treat canned-software sales as exempt when the publisher, rather than the reseller, signs the license with the customer?
Yes, potentially. The reseller did not have to be the licensor. If the signed license between the software publisher and the customer met all five requirements in 86 Ill. Adm. Code 130.1935(a)(1), the…
How did Virginia tax security systems that customers self-monitored, the seller monitored regularly, or the parties changed after installation?
A fully self-monitored system was a retail sale of tangible personal property, taxable on the sales price except separately stated installation or a valid exemption. A system regularly monitored by th…
Did buying substantially all assets of a franchised motor-vehicle dealership qualify for Virginia's occasional-sale exemption?
Yes. Although the seller continued a used-vehicle operation, that activity was housed separately, did not use the transferred dealership assets, had no shown economic flow with the dealership, and did…
Was an optional beauty-product protection plan taxable when its benefit was a future gift card rather than repair or replacement?
Yes. The plan differed from a repair or replacement warranty because its benefit was an intangible gift-card right, but that distinction did not make the charge exempt. The optional plan was sold only…
Can a private landfill manager exempt machinery and replacement parts used to reduce air or water pollution at municipally owned Georgia landfills?
Yes, when the private operator purchased, owned, installed, and used machinery, equipment, or replacement parts primarily to reduce or eliminate air or water pollution at Georgia landfills and obtaine…
Can a Louisiana tax credit still reduce tax for a prescribed period, and does an IRS adjustment reopen unrelated issues?
A credit could reduce the computed tax to zero, but any excess could not be refunded or carried to another period after the overpayment claim period prescribed. An IRS adjustment reopened only related…
What Virginia tax interest rates applied during the third quarter of 2013?
Virginia's third-quarter 2013 rates were 5% for tax underpayments and 5% for tax overpayments. The reduced rate for qualifying assessments under administrative appeal was 0% after the statutory nine-m…
Could a telecommunications provider exclude its local BPOL tax from the sales price subject to Virginia communications sales tax?
No. BPOL tax is imposed for the privilege of doing business in a locality; it is not a tax on the customer's purchase, sale, use, or consumption of communications service, and it is not a government f…
How did Virginia's revised 2013 guidelines implement the statewide and regional retail sales and use tax changes?
The historical guidelines raised Virginia's total statewide retail sales and use tax rate from 5.0% to 5.3% on July 1, 2013 and imposed a 0.7% regional tax, for a 6.0% total rate, in specified Norther…
Did Virginia's additional 0.7% Hampton Roads sales tax apply in Gloucester and Surry Counties on July 1, 2013?
No. Tax Bulletin 13-8 said Gloucester and Surry Counties were members of the Planning District 23 Commission but were not located in Planning District 23, so the additional 0.7% regional tax did not a…
Was a per-gallon fuel flowage fee required by a fuel-farm ground lease taxable as rent?
Yes. The flowage fee was consideration for the right to use the leased property because nonpayment was a default that could terminate the lease, even though the agreement did not label the fee as rent…
Are pressure washers and their repair parts exempt when used to clean farm or cotton-gin equipment and purchased with a GATE certificate?
Yes. Cleaning equipment used to repair or maintain general farm equipment or cotton-gin machinery qualified as agricultural machinery, and installed repair or replacement parts for that cleaning equip…
Are hearing-aid batteries exempt from Georgia sales tax when sold with a hearing aid or separately as replacement batteries?
Yes. Although the hearing-aid statute did not expressly mention repair or replacement parts, the Department treated its scope like the exemptions for durable medical equipment and prosthetic devices a…
May a Georgia seller limit direct customer sales-tax refunds to 90 days and require later exemption claims to be filed with the state?
Yes. The seller could require full invoice payment, review late exemption certificates, refund or adjust tax for requests within 90 days, and direct later claims to the Department with the seller's co…
How should a veterinary and farm-supply seller apply Georgia's GATE exemption to agricultural inputs, equipment, and related products?
Qualifying agricultural production inputs, agricultural energy, and machinery or equipment could be sold tax-free when the seller accepted a valid GATE certificate in good faith. The Department did no…
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