Scholarships/grants on Room & Board

BelknapPoint
Fri, 11 Oct 2019 19:57:03 +0000

That is not quite true when it comes to taxes.

“Some states of the United States do not honor the provisions of tax treaties.”

https://www.irs.gov/businesses/international-businesses/united-states-income-tax-treaties-a-to-z

It’s black letter law that federal law (this includes treaties to which the federal government is a party) trumps state law. See Article VI, paragraph 2 of the U.S. Constitution (also known as the Supremacy Clause). The fact that a state may “not honor the provisions of tax treaties” does not mean that this is a legally supportable position.