Multistate Tax Group Reexamines Scope of Digital Tax Project

A multistate effort examining the tax treatment of digital goods could drill into new themes, including differences between current state models, potential conflicts with the federal Internet Tax Freedom Act, and impacts on business-to-business transactions.

The Multistate Tax Commission’s work group on sales tax on digital products, meeting Thursday, discussed findings of a survey addressing the scope of the project. Among other things, the results reveal a desire by tax administrators to better understand the range of state strategies taxing digital products and services, and the benefits and drawbacks of each model, said Nancy Prosser, the commission’s general counsel.

The ...