Sales Tax on Digital Products
Project Description
At its July 28, 2021 meeting, the Uniformity Committee considered a recommendation from the Standing Subcommittee to begin drafting the outline of a white paper on state sales taxation of digital products. The committee agreed that MTC staff would begin the process by drafting a detailed outline of the issues to be included in that white paper and conducting research and stakeholder interviews. At the August 2, 2022 meeting of the Uniformity Committee, the committee reviewed the proposed draft outline and agreed that a project work group should be formed to provide ongoing input and review of the white paper, as it is developed.
On this project page, you will find:
information about upcoming and past meetings
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- whitepaper outline drafts
- research and analysis
- written comments and feedback
- legislative reports
- selected information from state tax agencies on taxation of digital products
- background and other information on the Streamlined Sales and Use Tax Agreement
- related federal information
Upcoming Meeting Notice
Agenda
Thursday, October 5, 2023 – 11:00 a.m. Eastern
I. Welcome and opening remarks
II. Initial public comment
III. Review of notes from September 7, 2023 meeting
IV. Comments from Mark Nebergall, Software Finance and Tax Executives Council (SoFTEC), to Ray Langenberg’s “Determining the Tax Base”
V. Discussion of draft matrix (opens in Excel) with three approaches to taxing digital products. We will hear from state tax agency representatives about their experiences dealing with the taxation of digital products and how that will help add more information to the draft matrix.
VI. Adjourn
Dial-in/Log-in Information
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Project Materials
Latest Documents – By Subject
Whitepaper Outline Drafts
- Draft of Detailed Outline of White Paper – August 2, 2022
- Draft Detailed Outline of White Paper – September 1, 2022 (Word Version)
- White Paper Outline as of October 17, 2022 (Word Version)
- White Paper Outline for the December 8, 2022 Meeting
- White Paper Outline for the January 5, 2023 Meeting (Word Version)
- White Paper Outline as of February 2, 2023 (Word Version)
Resolutions
Written Comments and Feedback
- Comments of the ABA – Issues to Address Regarding the Taxation of Digital Products – Nov. 2, 2021
- Letter from Eversheds Sutherland – Sept. 21, 2022 to the Work Group at its initial meeting.
- Letter from Eversheds Sutherland – Jan. 3, 2023
- Multistate Tax Group Needs Expertise to Form Digital Definitions, by Kelvin M. Lawrence, published by Bloomberg Tax June 13, 2023, and posted with permission
- Comments from Jeff Friedman and Charlie Kearns, Eversheds Sutherland, “The MTC’s Digital Products Work Group Should Adopt Our Three Guiding Principles” Aug. 9, 2023.
Legislative Reports
Streamlined Sales Tax Information
- Streamlined Sales and Use Tax Agreement – May 20, 2021
- Streamlined Rules and Procedures for States – October 5, 2021
- Streamlined Taxability Matrix – Access to Streamlined State Responses to What Taxes are Imposed on Specified Digital Goods
Related Federal Information
- Digital Goods and Services Tax Fairness Act – 2019 (S 765)
Additional Background Information
Prior Meeting Agendas, Materials, and Notes
Digital Goods Workgroup Agenda, September 7, 2023
Digital Goods Workgroup Agenda, August 3, 2023
Digital Goods Workgroup Agenda, July 6, 2023
Digital Goods Workgroup Agenda, June 1, 2023
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- Notes from Apr. 6, 2023 meeting
- Video from June 1 meeting – Research update from MTC Counsel Jonathan White on state treatment of digital products (links to Vimeo)
Digital Goods Workgroup Agenda, April 6, 2023
Digital Goods Workgroup Agenda, Special Meeting with Avalara Representatives, March 28, 2023
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- (no attachments)
Digital Goods Workgroup Agenda, March 2, 2023
Digital Goods Workgroup Agenda, February 2, 2023
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- MTC staff activities since Jan. 5, 2023 meeting (PowerPoint slides)
- White Paper Outline as of February 2, 2023 (Word Version)
- Notes from January 5, 2023 Meeting
Digital Goods Workgroup Agenda, January 5, 2023
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- White Paper Outline for the January 5, 2023 Meeting (Word Version)
- Notes from December 8, 2022 Meeting
- Letter from Eversheds Sutherland – Jan. 3, 2023
Digital Goods Workgroup Agenda, December 8, 2022
Digital Goods Workgroup Agenda, October 27, 2022
Digital Goods Workgroup Agenda, September 22, 2022
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- Draft Detailed Outline of White Paper – September 1, 2022 (Word Version)
- Letter from Eversheds Sutherland – Sept. 21, 2022 to the Work Group at its initial meeting.
Initial MTC Materials
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- Draft of Detailed Outline of White Paper – August 2, 2022
- Status Report to the Uniformity Committee – August 2022
- Status Report to Uniformity Committee – April 2022
- Status Report to Uniformity Committee – November 2021
- Comments of the ABA – Issues to Address Regarding the Taxation of Digital Products – Nov. 2, 2021
Project Proposal and Recommendation Presentation by the State of Washington Department of Revenue to the Uniformity Committee at its April 2021 meeting recommending that the committee consider a project to modernize state sales and use tax systems to include digital products.
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- Washington Presentation 2021 (PowerPoint Slides)
- Washington Presentation on Sales Taxes on Digital Products 2021 (Video)
Recommendation by the Standing Subcommittee to the Uniformity Committee that the committee begin a project.
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- Final Recommendation – Project on Sales Taxation of Digital Products – as Approved June 17, 2021