KPMG reports: New Jersey, Rhode Island, South Dakota

KPMG reports focus on recent state and local tax developments

KPMG reports focus on recent state and local tax developments

KPMG This Week in State Tax—produced weekly by the KPMG State and Local Tax practice—focuses on recent state and local tax developments.

  • New Jersey:  Assembly Bill 5323, which was formally introduced in the state legislature on March 20, 2023, would make significant revisions to New Jersey’s corporation business tax laws, including making changes to the definition of entire net income and the rules requiring combined reporting.
  • Rhode Island: The state tax authority confirmed in Ruling Request No. 2023-01 that infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS) are all subject to sales and use tax as long as there is a charge to a Rhode Island customer for the use of the virtual infrastructure, platform, or for software that is accessed through the internet or on a vendor-hosted server. 
  • South Dakota: Recently enacted legislation temporarily (until June 30, 2027) reduced the gross receipts tax rate to 4.2% (from 4.5%), effective July 1, 2023. The gross receipts tax is South Dakota’s sales tax equivalent.

Read a March 2023 report prepared by KPMG LLP

 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.