SALT Technology Checklist
A quarterly publication that summarizes technology-related state tax guidance and legislative developments
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State and Local Tax
States are increasingly attempting to address the application of tax to emerging technology and business models through new law, court cases, and administrative rulings. Tracking developments is critical not only for technology providers, but also for purchasers of technology.
To make recent developments more accessible, the KPMG Washington National Tax –State and Local Tax practice has created a quarterly Technology Checklist that summarizes recent state guidance for topics such as access to telecommunications services, web-based services, software, and streaming services.
Highlights of the 4th Quarter 2024 checklist include:
- Louisiana: Governor Landry signed legislation which extends the state’s sales and use tax to digital products and services, as well as prewritten computer access services and information services.
- Massachusetts: Governor Healey signed an economic development bill which introduced a new sales and use tax exemption specifically for data centers. The exemption applies to data center equipment, computer software, electricity used in operations, and construction costs for data centers.
- Texas: The Comptroller issued a private letter ruling finding that a taxpayer’s purchase of cloud computing services to host and operate an online logistics system did not qualify for a resale exemption. In this case, the Comptroller found that the taxpayer purchased the cloud services for its own use rather than to be resold to a customer.
- Washington: The Washington Department of Revenue released an updated Excise Tax Advisory on the taxation of non-fungible tokens (NFTs), refining guidelines from July 2022. This Advisory provides a comprehensive framework for understanding the state’s treatment of NFTs for sales/use and business and occupation (B&O) tax purposes.
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Meet our team
Reid Okimoto
Principal, State Local Tax, KPMG US
Audra Mitchell
Managing Director, WNT - SALT U.S. Indirect Tax, KPMG US