Identification & Taxability of Digital Products.

Posted on September 9, 2013

Did you know...

While searching for the perfect pumpkin for Halloween in Iowa, be sure the pumpkin patch knows that you’re going to use the pumpkin for making pies rather than for decoration; it will save you 7% sales tax.

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The body of sales tax law we live and work with today is based on original statutes whose logic and drafting style adhered to the predominant model of their time and focused exclusively on sales of tangible goods. At the time, no one envisioned a society where services were equally valued as products, let alone products and services delivered in cyberspace.

These days, many states routinely apply sales taxes to services, yet the shift in
consumer spending leaves us a body of sales tax laws originally drafted with
tangible goods in mind that are now regularly, if not uniformly, applied to
intangible services.

Let’s say this as nicely as possible: The adaptation and application of sales tax laws to services has not occurred uniformly across the states. There is a great deal of divergence amongst the states in determining how and
when services are taxed.

Learn more by filling out the form and downloading your free copy of "Identification & Taxability of Digital Products."

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