On September 1, 2026, the California Department of Tax and Fee Administration (CDTFA) published a Discussion Paper, including proposed emergency regulations (Draft Regulations) that would amend existing sales and use tax regulations and adopt new ones, on the application of the sales and use taxes to digital products. The Discussion Paper is CDTFA’s first
Digital Product
Virginia Budget Bill introduced, taxes digital products and computer services
By Charlie Kearns & Charles Capouet on
Governor Glenn Youngkin has issued his proposed Virginia 2024 – 2026 Budget Bill. The Budget Bill would make three notable changes to Virginia’s tax structure, all of which would take effect on January 1, 2025: (1) increase the sales and use tax rate; (2) expand the sales and use tax base to digital products; and…
Maryland alters statutory definition of “digital product”
By Jonathan Feldman, Jeremy Gove & Alla Raykin on
Posted in Digital Economy, Policy and Legislation
Maryland H.B. 791 clarifies that the definition of “digital product” for sales and use tax purposes does not include certain digital inputs or enterprise software. Specifically, H.B. 791 excludes from taxable digital products the following: (i) products having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities where the purchaser has a copyright or similar…