Kansas Bill Proposes Sales Tax on Digital Goods Starting at 6.5%

Kansas lawmakers on Tuesday heard a new proposal for a sales tax on digital goods, including streaming entertainment, audio and video purchases, books, and digital codes and property.

The measure (HB 2584) mandates collecting the state’s 6.5% sales tax on all digital property and subscription services sales starting July 1, 2024. The tax would apply regardless of whether the buyer has the right to permanently use the property, if access or retention rights aren’t permanent, or if usage rights are contingent on ongoing payments.

If revenue from the tax exceeds $36.7 million, starting in fiscal 2026, the ...