SALT Technology Checklist

A quarterly publication that summarizes technology-related state tax guidance and legislative developments.

Harley T. Duncan

Harley T. Duncan

Tax Managing Director, KPMG LLP

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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.

Highlights of the current issue include:

  • Indiana: The Indiana Department of Revenue issued guidance regarding implementation of the recent sales and use tax exemption for software as a service effective July 2, 2018.
  • Rhode Island: The Rhode Island legislature enacted legislation subjecting "vendor-hosted prewritten computer software" to sales and use tax effective October 1, 2018.
  • Arkansas: The Arkansas Department of Finance and Administration issued several rulings regarding the taxation of specified digital products, which became taxable effective January 1, 2018. The rulings addressed digital audio and video production services; animation and motion graphics; and online publications, newspapers, journals, and databases.
  • Texas: A Texas appellate court ruled that software tools to design and develop semiconductor chips do not qualify for the Texas manufacturing exemption. 

Many more developments are covered in the Techlist - download it here.

Introducing the latest "Techlist" - Guidance from the Third Quarter of 2018

KPMG's Washington National Tax - State and Local Tax practice summarizes state and local tax developments and guidance related to technology during the third quarter of 2018.

Previous Issues