Multistate Tax Project Aims to Exempt Digital Business Inputs

A multistate effort examining uniform rules for the taxation of digital products voiced support for a set of guiding principles Tuesday that will encourage the development of laws and regulations that are “simple, easy to administer, and transparent,” and exempt business uses of such products.

Under that umbrella, the Multistate Tax Commission’s digital products work group emphasized its willingness to recommend exemptions for business-to-business transactions, often referred to as “business inputs.” In an era of ubiquitous commercial usage of digital products and services such as remote computing, cloud storage, and software-as-a-service, business interests have lobbied the work group to exempt ...