State tax, I’m able to follow (7)
I believe the answer is:
vatican
'state' is the definition.
(I've seen this before)
'tax i'm able to follow' is the wordplay.
'tax' becomes 'vat' (British sales tax).
'i'm' becomes 'i' (I can't justify this - if you can you should give a lot more credence to this answer).
'able' becomes 'can'.
'to follow' is a charade indicator (letters next to each other).
'vat'+'i'+'can'='VATICAN'
Can you help me to learn more?
(Other definitions for vatican that I've seen before include "City within Rome" , "Papal hill and city" , "Holy See" , "ecclesiastical centre" , "Pope's residence" .)