Thune, Wyden Introduce Digital Goods and Services Tax Fairness Act
Sens. John Thune, R-S.D., and Ron Wyden, D-Ore., introduced the Digital Goods and Services Tax Fairness Act Tuesday, a joint news release said. The bill would “prevent discriminatory and duplicative taxes on digital goods and services, including online downloads of…
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music, literature, movies, mobile apps, and cloud computing services,” it said. “The bill prohibits state and local governments from applying taxes to those products that do not apply to similar tangible goods, as currently in statute as part of the Internet Tax Freedom Act,” said the release. “Federal laws have not kept up with the fast-growing and ever-changing digital marketplace, resulting in outdated rules that could allow a single transaction to be taxed by multiple jurisdictions,” Thune said. “The legislation says that when the legitimate taxes are imposed on a digital product, it can only be imposed on the final customer or end user,” it said. “Without this provision, the retailer in one state can be taxed on a product or service as can the consumer in another state.”