Multistate Tax Group Refocuses on Sourcing Digital Products

A multistate initiative studying the tax treatment of digital products will shift its focus to sourcing, aiming to develop a uniform rule to help states determine the location where sales receipts are earned for tax purposes.

Sourcing is the logical next step for the Multistate Tax Commission’s digital products work group after tackling bundled digital products and making progress on a uniform definition for digital products, chairman Tim Jennrich said Tuesday during the intergovernmental tax agency’s spring meeting in Spokane, Wash.

Accurate sourcing of receipts supports proper tax collection and minimizes disputes over double taxation. States have used different tax ...