United States

State and Local Tax Technology Checklist (Techlist)

Sep 21, 2017
From the KPMG TaxWatch

While technology and business models continue to evolve at warp speed, state tax laws change much more slowly. As a result, businesses deploying new technologies and business models face a great deal of uncertainty in attempting to evaluate how a tax law developed 75 years ago applies today.

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—which includes everyone.

To make recent developments more accessible to our clients, KPMG's Washington National Tax –State and Local Tax practice has created a Technology Checklist (Techlist) that summarizes recent state guidance for topics such as the taxability of software, guidance on digital equivalents and much more. The Techlist will be published on a quarterly basis.

If you have any questions about the Techlist, please contact Harley Duncan or Reid Okimoto.

Current Issue

State and Local Tax Techlist - Guidance from the Third Quarter of 2017 - highlights include:

  • Pennsylvania: The Pennsylvania Department of Revenue ruled that a taxpayer's information retrieval products, consisting of subscriptions to Internet-based legal research databases, were subject to tax. 
  • Massachusetts: The Massachusetts Department of Revenue promulgated a regulation requiring certain Internet vendors that are not otherwise required to register, collect, and remit Massachusetts sales or use tax to do so if they make over a certain dollar amount in Massachusetts sales or over 100 Massachusetts transactions in the previous year. 
  • New York: The New York Department of Taxation and Finance issued an advisory opinion regarding the taxability of the petitioner's Webinar and live stream products and certain related optional services.
  • Illinois: The Illinois Department of Revenue issued a private letter ruling resolving how multiple affiliated companies with various Illinois locations (including corporate headquarters, distribution facilities, retail locations, and data centers) should source local sales and use tax.