The answer depends on the state in question. In most states the answer is no. A handful of states have a simple, one- or two-page form that must be prepared. At this time, California is the only state that requires a separate application process whose length and detail rivals the IRS application process. In California, federal tax-exemption does not eliminate state income tax liability until approval is received from the California Franchise Tax Board. We can also assist you with a California filing if you wish.