Share with your friends

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.


Related content

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."

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal