State and Local Tax Technology

Nowhere is state and local tax more complicated than at its intersection with emerging technologies. State lawmakers and revenue departments struggle to keep pace with technological innovation. The result is a quagmire of outmoded laws and inconsistent approaches across jurisdictions.

The Baker Botts state and local tax team has national experience in navigating challenges and ambiguities arising from gaps between state and local tax laws and new technologies.

Examples of areas in the Technology Sector in which our state and local tax lawyers have demonstrated experience include:

  • Intellectual property licensing
  • Telecommunications
  • e-Commerce transactions
  • Digital products and downloads
  • Bundling of digital goods and services
  • Software development, sales, and services
  • Social media and Internet advertising
  • Patent infringement awards
  • Cloud computing platforms (SaaS, PaaS, IaaS)
  • Hardware and software integration

Our state and local tax lawyers understand these products and transactions and how state and local tax laws apply to them in jurisdictions throughout the United States. Where the law is unsettled, our reputation and relationships with taxing officials enable us to procure binding guidance to enable our clients to move their businesses forward with confidence. We also have significant experience litigating state and local tax issues relating to these technologies.

The strength of the state and local tax technology practice is due in part to synergies with lawyers and technical advisers in our renowned Intellectual Property Practice. Collaborating with these professionals allows the state and local tax team to provide the highest level of service in even the most technologically challenging situations.

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