Overview
McDermott Will & Schulte is proud to sponsor COST’s 2026 SALT in a Digital World Workshop.
This Workshop will cover the key state and local tax issues that affect everyone using technology in their operations (and that’s likely everyone!). The first day of the Workshop will focus on AI – its uses and impact on state and local taxes and it will be very interactive. Some of the topics that will be covered are: Legislation and Litigation Updates; Transfer Pricing; Evolution of Market Based Sourcing; States’ Efforts to Expand Their Transactional Tax Base; The application of Extraction Taxes to Data Collection; and many more. Leading state tax experts will share technical expertise and knowledge they have gained from practicing in these areas every day. This Workshop is for someone at all levels of state and local tax experience. No advance preparation is needed; however, it is strongly recommended you bring a computing device with Copilot installed. Only employees of COST member and non-COST member companies are invited to attend.
McDermott partners will speak at the following sessions:
State Tax Spotlight: Washington and Maryland’s Digital Tax Overhaul
March 3, 2026
1:30 – 2:30 pm (PST)
Speaker: Eric Carstens
Two states are leading the charge in redefining how digital transactions are taxed—and the ripple effects will be felt nationwide. This session explores Washington’s expansion of sales tax to a wide range of digital and professional services, including IT consulting, custom software, advertising, digital media, and staffing services. This session will also examine Maryland’s new 3% sales tax on digital and IT-related services, covering data processing, hosting, SaaS, and other technology-driven offerings.
From Audit Notice to Courtroom: Managing the Lifecycle of a State Tax Audit
March 3, 2026
3:50 – 5:20 pm (PST)
Speaker: Michael Hilkin
State tax audits can be unpredictable, resource-intensive, and high-stakes—especially when they escalate to litigation. This session walks through the entire audit lifecycle, from the initial notice and information requests to negotiation, settlement, and potential courtroom battles. The session will provide practical insights into risk mitigation, communication strategies and procedural steps geared to achieve a smooth resolution.
Taxation of the Digital Economy: The Challenges of Expanding the Tax Base
March 4, 2026
9:00 – 10:00 am (PST)
Speaker: Steve Kranz
The digital economy is transforming state tax systems as legislatures attempt to broaden tax bases to capture revenue from technology-driven transactions. From streaming services and cloud computing to digital advertising, social media platforms, and online marketplaces, states are redefining what’s taxable. This session will explore both the constitutional considerations arising from these proposals, as well as how initiatives like SSUTA and MTC aim to bring uniformity to this dynamic landscape.
Ask The Experts
March 4, 2026
10:20 – 11:45 am (PST)
Speaker: Steve Kranz
Really? Free advice from practitioners? That’s right! This is your chance to question practitioners and get their views on state and local tax issues related to your technology operations and issues. The panel will answer questions that have been submitted by attendees as well as discussions they’ve had with attendees during the Workshop that would be of interest to other attendees. Finally, the panel will address trends they expect to see in 2026 and beyond, as they apply to the technology industry as well as the use and impact of technology in general.