SALT Technology Checklist
A quarterly publication that summarizes technology-related state tax guidance and legislative developments
Guidance from the First Quarter of 2025
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 state and local tax developments related to technology more accessible to our clients, Washington National Tax–SALT has compiled a technology checklist (Techlist) that summarizes state guidance issued during the first quarter of 2025. Topics covered include access to web-based content, services or software; data center exemptions; data processing; digital equivalents; and the taxability of software.
Highlights include:
- Indiana: The Department of Revenue determined that a taxpayer's video game service offerings, which included online subscriptions, in-game items, and virtual currency, were not subject to sales tax. The services did not involve the transfer of tangible personal property or specified digital goods.
- North Carolina: The Department of Revenue determined that a taxpayer offering online learning products which included videos, books, and audiobooks was required to collect sales tax. The taxpayer’s digital content was classified as taxable digital property.
- Rhode Island: The Division of Taxation ruled that a taxpayer’s service of providing online ancestral and health history reports constituted the taxable sale of vendor-hosted prewritten computer software.
- Texas: The Comptroller of Public Accounts amended its rule on data processing services, adopting a new test for determining the taxability of a transaction involving the sale of data processing along with another service for a single charge.
- Washington: The Board of Tax Appeals ruled that a taxpayer’s content delivery network (CDN) services were not taxable as digital automated services because they qualified as exempt web hosting.
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