- States are expanding sales tax bases to include digital goods and services in 2025.
- Historically, sales tax targeted tangible goods, but now includes digital products like streaming and SaaS.
- Digital advertising, remote software, online education, and NFTs are being considered for taxation.
- Legal challenges arise due to the burden on businesses operating in multiple jurisdictions.
- Inconsistencies exist in defining taxable digital goods, such as SaaS being taxed differently across states.
- Maryland’s Digital Advertising Tax faces legal scrutiny, with ongoing cases like Comptroller v. Comcast.
- New York’s proposed streaming tax stalled due to consumer impact and First Amendment concerns.
- SaaS classification varies by state, complicating compliance for nationwide businesses.
- Maryland, New York, Texas, and Washington are expanding digital sales taxation in 2025.
Source: thompsontax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
