Committee hears hours of testimony on proposed expansion of sales tax to services, digital advertising and additional cigarette tax

A legislative committee held a public hearing April 21 on Senate Bill 58 58 14, a broad tax package that would classify additional services and certain digital products as taxable retail sales, expand the definition of tobacco products to include nicotine whether derived from tobacco or synthetic sources, raise per‑cigarette taxes and require a one‑time prepayment of state sales tax by very large monthly filers.

Christina King, staff to the committee, summarized the bill’s contents, saying customers “do not pay retail sales and use tax on most services” but that the bill would add categories including information technology consulting and training, custom website and software work, security monitoring and armored‑car services, temporary staffing, and certain advertising services. King also described an added excise on cigarettes and reiterated that the Department of Revenue may provide altered filing frequencies for small taxpayers.

The bill would also treat “digital products” and some digital automated services (DaaS) as subject to sales and the retailing business & occupation tax unless specifically excluded. King said some exclusions remain—for example, services that…