Here’s what HIVE AI had to say about “Which states are expanding the sales tax base to digital products?”:
States expanding sales tax to digital products
Louisiana
- Broadening its sales tax base to include digital goods as part of a 2025 package that also restores the state rate. This explicitly brings items like downloadable media into the taxable base. 1
Washington
- Applying sales tax to certain services starting October 1, 2025, including digital advertising services and IT services (a significant expansion into digital services and other B2B transactions). 2
Maryland
- Newly applying a 3 percent sales tax to select business-to-business services, including data and informational technology (IT) services, effective July 1, 2025, expanding into digital/service categories. 2
Context and examples of broader digital taxation trends
States already taxing a range of digital goods and services
- Iowa is a representative example of states that have broadened their bases to digital goods and services (e-books, downloads, file storage) and software-as-a-service (SaaS). 3
Policy direction noted in comparative indexes
- State tax competitiveness analysis highlights that modern sales tax bases increasingly include digital goods and services like e-books and digital video as final consumption items, reflecting a wider trend toward digital base broadening. 4
Sources
1 – Tax Foundation 📄 Summarize
2 – Tax Foundation 📄 Summarize
3 – Tax Foundation 📄 Summarize
4 – Tax Foundation 📄 Summarize
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