KPMG report: State and local tax, technology-related guidance (table, third quarter 2020)

State and local tax, technology-related guidance

A report of U.S. state and local tax developments concerning technology-related tax issues, for the third quarter of 2020, provides updates in table format and covers topics such as access to web-based services, guidance on digital equivalents, taxability of software, and other items.


Read the KPMG report [PDF 97 KB] of state and local technology-related tax developments for the third quarter of 2020.


  • Georgia: The state’s tax tribunal granted a telecommunications company's refund request under the state's "high-tech" exemption. Georgia law provides an exemption from sales and use tax for the sale or lease of computer equipment to any high-technology company (based upon the taxpayer's NAICS code). The equipment must be incorporated into a facility in the state, and the exemption is available only to entities that purchase or lease more than $15 million of computer equipment in a calendar year. The tribunal determined that each asset type for which a refund was sought was an integral part to the taxpayer's wireless network, which itself was an assembly of hardware and software, and that the majority of the unique assets were themselves computers. Thus, the taxpayer's refund claim was granted. 
  • Illinois: The city council of Evanston (a home rule municipality) amended and expanded the scope of its local amusement tax. The amendment, based on the City of Chicago's amusement tax, expands the tax to amusements delivered electronically, such as video streaming, audio streaming, and online games. 
  • North Carolina: The state legislature expanded the imposition of the sales and use tax to digital codes, effective July 1, 2020. 
  • Rhode Island: Newly enacted legislation expands the sales and use tax definition of "sale" to include "the right to use the specified digital products on a permanent or less than permanent basis and regardless of whether the purchaser is required to make continued payments for such right."

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