KPMG reports: New York State, Texas, Virginia

KPMG reports: New York State, Texas, Virginia

KPMG’s This Week in State Tax—produced weekly by KPMG’s State and Local Tax practice—focuses on recent state and local tax developments.

  • New York State: The Department of Taxation and Finance issued an advisory opinion concluding that receipts from digital advertisements produced by the taxpayer’s prewritten computer software were subject to sales and use tax.  The opinion concludes that by granting customers access to the software for their own use, the taxpayer was making a sale of taxable tangible personal property to the extent any of its customers’ employees who used the software were in New York. Read a November 2020 report

  • Texas: Proposed revisions to the regulation addressing apportionment of margin include changes relating to the rules for sourcing service receipts. The proposed changes to the regulation include guidance on interpreting the location where a service is considered performed, and generally, a service will be performed at the location of the receipts-producing, end-product act or acts—a new test that aligns with language adopted by the appeals court in the Sirius XM case. There are also numerous other changes in the proposed regulation. Read a November 2020 report

  • Virginia: The Commissioner of Revenue ruled that a company that prepared meals in airport kitchens and worked with airlines to create meals that were particular to the airline’s requirements was not entitled to the sales and use tax exemption applicable to industrial manufacturing. The ruling concluded that the taxpayer’s activities did not fall within the qualifying NAICS code. Read a November 2020 report

© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained 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