SALT technology checklist

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

Harley T. Duncan

Harley T. Duncan

Managing Director, State & Local Tax, KPMG US

+1 202-533-3254
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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, KPMG's Washington National Tax –State and Local Tax practice has created a quarterly Technology Checklist (Techlist) that summarizes recent state guidance for topics such as the taxability of software, guidance on digital equivalents, and much more. 

Highlights of the current issue include:

  • Connecticut: Effective on or after October 1, 2019, Connecticut amends the definition of tangible personal property to include digital goods and canned or prewritten software that is electronically accessed or transferred, other than when purchased by a business for use by such business, and any additional content related to such software. This effectively changes the tax rate for digital goods and prewritten software for nonbusiness use from 1 percent to the general sales and use tax rate of 6.35 percent.
  • Iowa: The Iowa Department of Revenue issued guidance clarifying that a food delivery service company that facilitates orders from restaurants and handles payment for the transaction will likely be considered a marketplace facilitator.
  • Rhode Island: Effective October 1, 2019, Rhode Island imposes the sales and use tax on specified digital goods, which is defined as electronically transferred digital audiovisual works, digital audio works, and digital books.  
  • Vermont: The Vermont Department of Taxes issued guidance clarifying that prewritten software accessed remotely (or Software as a Service) is not taxable. 

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

State and Local Tax Technology Checklist - Third Quarter 2019
Technology-related state tax guidance issued during the 3rd quarter of 2019

Previous Issues