Decoding tax complications in the technology industry

Despite the significant role and growth of the technology sector in today's economy, adhering to state tax laws is a complex and often frustrating endeavor. State and local tax laws frequently reflect a goods-oriented, brick-and-mortar economy, and can present a challenge to apply these outdated provisions to the products of technology companies. Ironically, technology itself often provides solutions to the compliance issues it creates.

In a co-authored article for State Tax Notes, titled “SALT considerations for the technology industry,” Dana Lance, National Managing Partner for SALT Solutions, Principal Jamie Yesnowitz, and Manager Stuart Jeffries, explore tax compliance strategies and opportunities for technology businesses. The article examines the complications of determining apportionment for businesses in multistate jurisdictions, discusses the use of internet cookies to determine taxable interactions, describes the popularity of indirect taxes on the industry, and reviews the funding opportunities of the CHIPS Act aimed at supporting domestic semiconductor development and production.

Read the State Tax Notes article here, and for more on this subject, read our tax guide for technology, “New taxes, new solutions for tech firms.”

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