Digital Taxes Rise on State Agendas as Budget Pressures Mount

A storm of economic pressures is driving a growing number of governors and state lawmakers to tap the digital economy for taxes to meet 2026 budget challenges and develop more resilient revenue systems.

The search for new revenue is spreading as federal pandemic support ends and state revenue collections stall after several years of tax cutting. A new layer of anxiety has emerged with the Trump administration’s talk of reducing federal support to state and local governments.

In many cases, states will simply expand their sales tax bases to the long list of digital goods and services, tax analysts said. ...