Virginia Proposal for Tax on Digital ‘Inputs’ Draws Opposition

A business group is urging Virginia lawmakers to reject the idea of extending the state sales tax to digital goods sold business-to-business.

The group, the Council on State Taxation, lodged its protest with the House and Senate appropriations committees as legislators approach negotiating different versions of budget bills they passed last week. Both chambers call for extending the state sales tax to cover digital goods, but the Senate bill would include business inputs like website hosting and software application services as well as sales of streaming services, digital downloads, and more to end-use customers.

• In a Jan. 22 letter to ...