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State-by-State Guide to the Taxability of Digital Products

Where are electronic books, Hulu, and Pandora subject to sales tax? Gail Cole for CPA Advisor writes that sales tax laws don’t always keep up with the times.

"Although more and more of us now use digital products in our work and fill our free time with ebooks, Spotify, and Netflix, many states still don’t tax their sale or rental of these products. That’s steadily changing.

Though there’s often resistance to expanding sales tax to previously exempt goods and services, including those that didn’t exist when sales tax was first levied, it’s gradually breaking down. Year after year, digital products shift from exempt to taxable in some part of the world. On January 1, 2019, for example, several American states and Canadian provinces started to tax the sale of digital goods and services. Others are looking to follow suit."

See the breakdown state-by-state to where state's stand on taxing digital products. 

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Judy Vorndran Can Be Reached At Jvorndran@Taxops.Com Or 720.227.0093. Follow Judy On LinkedIn.

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