The topics to the left of this summary are expected to be included in the final white paper with findings and recommendations.

On April 28, 2021, representatives from the Washington Department of Revenue gave a presentation to the MTC Uniformity Committee in which they described their state’s experience with imposing sales tax on digital products as well as the alternatives considered. They also proposed that the Committee take up a project to help states develop a simpler and more adaptable approach. 

– Washington Presentation 2021 (PowerPoint Slides)

– Washington Presentation on Sales Taxes on Digital Products 2021 (Video)

The Committee asked the Standing Subcommittee to review the project proposal. The Standing Subcommittee recommended to the Uniformity Committee that a work group be formed to draft a white paper.

– Final Recommendation – Project on Sales Taxation of Digital Products – as Approved June 17, 2021​

The Uniformity Committee asked MTC staff to first solicit input from stakeholders and prepare a detailed outline of the white paper, identifying issues to be addressed. It directed staff to talk to stakeholders, review the relevant research, and identify issues to be included in a detailed outline of that paper. 

During 2021 and 2022, MTC staff conducted 43 separate interviews of individuals or groups representing particular taxpayers, states, or other organizations, as well as practitioners and academics. (See Appendix). They surveyed other relevant research, including studies done by other groups, much of which also is cited throughout this outline. They also monitored work of the Streamlined Sales and Use Tax Governing Board (“Streamlined”) and the New Jersey Division of Taxation’s study on the taxation of the digital economy generally, which was done in conjunction with Rutgers University.