Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Digital Sales Tax topic
No spam. Unsubscribe anytime.
Committee clears bill to tax streamed and downloaded digital goods the same way
Summary
A substitute to SB162 clarifies that digital audio/visual works, e-books and gaming services are subject to sales and use tax regardless of whether they are streamed or downloaded; Tax Commission backed the cleanup while the legislative fiscal note was flagged for update.
The Senate Revenue and Taxation Committee on Jan. 28 approved a substitute clarifying Utah's sales‑tax treatment of electronically transferred products, removing an older legal distinction between streamed and downloadable goods.
Senator Wilson said SB162 aligns the statutory code with modern technology so digital audio and audio‑visual works, electronic books and gaming services are taxable whether the product is streamed or downloaded. "Whether a product is streamed or downloaded, it can be played or watched similarly," he said.
Jason Garner, deputy executive director of the Utah State Tax Commission, told the committee the bill "cleans up the code" and will reduce taxpayer confusion. Garner said most sellers already collect and remit tax on both streamed and downloaded products, and the bill mainly clarifies existing practice.
Committee members questioned a relatively large fiscal note. Garner and the sponsor said the fiscal estimate was inaccurate because it assumed additional collection beyond what businesses were already remitting; they requested an updated fiscal note from legislative analysts before floor action.
Steve Young, a state and local tax attorney, told the committee the bill would bring needed uniformity for taxpayers and concurred that the fiscal note appeared inconsistent with industry practice.
The committee voted to favorably recommend the substitute to the full Senate.
