U.S. state and local tax, technology-related guidance | KPMG | GLOBAL

State and local tax, technology-related guidance (table, second quarter 2016)

U.S. state and local tax, technology-related guidance

Given technology has an ever-expanding role in the operation of businesses today, KPMG has prepared a quarterly report of state and local tax developments concerning technology-related tax issues, of the second quarter of 2016.


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Topics addressed in the KPMG report (provided in table format) include access to web-based services, guidance on digital equivalents, and the taxability of software. 


  • Arizona: The Department of Revenue ruled that a taxpayer’s cloud storage offering constituted a rental of tangible personal property, subject to the transaction privilege tax.
  • Georgia: The Department of Revenue ruled that an online marketplace for chefs was required to collect and remit sales and use tax on amounts received from customers, without a deduction for its service fees.
  • New York: The Department of Taxation and Finance determined that a taxpayer’s web-based data backup services were not taxable.
  • Texas: A state appeals court held that a taxpayer’s bill paying services provided to banks over an electronic platform did not constitute taxable data processing services.


Read the KPMG report [PDF 91 KB] that lists these and other tech-related state and local tax developments for the second quarter of 2016

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