Industries

Helping clients meet their business challenges begins with an in-depth understanding of the industries in which they work. That’s why KPMG LLP established its industry-driven structure. In fact, KPMG LLP was the first of the Big Four firms to organize itself along the same industry lines as clients.

How We Work

We bring together passionate problem-solvers, innovative technologies, and full-service capabilities to create opportunity with every insight.

Learn more

Careers & Culture

What is culture? Culture is how we do things around here. It is the combination of a predominant mindset, actions (both big and small) that we all commit to every day, and the underlying processes, programs and systems supporting how work gets done.

Learn more

SALT Technology Checklist

3rd Quarter 2023  – A quarterly publication that summarizes technology-related state tax guidance and legislative developments

abstract swirl pattern
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 3rd Quarter 2023 checklist include: 

  • California: California Governor Gavin Newsom signed a budget bill that includes tax breaks for semiconductor companies. Senate Bill 131 modifies the new employment tax credit to attract semiconductor factories, responding to federal incentives aimed at strengthening the microprocessor supply chain.
  • Tennessee: The Tennessee Department of Revenue ruled that a technology company providing staff augmentation and payment processing services through a digital platform was not subject to sales and use tax. The Department explained that staff augmentation and payment processing services are not taxable services, and the use of the app to access the platform was merely incidental to the non-taxable services.
  • Texas: The Texas Comptroller released updated guidance on the taxability of electronic games and associated content. Electronic games, subscriptions, and membership fees for electronic games and game communities are taxable as amusement services. Purchases of associated content for electronic games, such as virtual goods, additional game content, gameplay enhancements, and aesthetic enhancements, are also taxable as amusement services.
  • Virginia: The Virginia Tax Commissioner ruled that a taxpayer was eligible for a data center exemption for sales and use tax purposes. Initially, the taxpayer’s refund request was partially denied by the Department of Revenue because the taxpayer’s equipment was delivered to a storage facility instead of directly to the data center. Based on a previous ruling, the Commissioner found that the data center exemption applied to the taxpayer’s equipment regardless of the delivery location.
  • Vermont: The Vermont Department of Taxes updated its sales tax guidance for prewritten software accessed remotely. Specifically, charges for software as a service (SaaS), infrastructure as a service (IaaS), and platform as a service (PaaS) are not taxable for Vermont sales tax purposes. 

Many more developments are covered in the Techlist, download it below. 

Dive into our thinking:

State and Local Tax Technology Checklist

Guidance from the third quarter of 2023

Download PDF

Meet our team

Image of Reid Okimoto
Reid Okimoto
Principal, State & Local Tax, KPMG US
Image of Audra Mitchell
Audra Mitchell
Managing Director, WNT - SALT U.S. Indirect Tax, KPMG US

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.

By submitting, you agree that KPMG LLP may process any personal information you provide pursuant to KPMG LLP's Privacy Statement.

An error occurred. Please contact customer support.

Job seekers

Visit our careers section or search our jobs database.

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Office locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

Headline