House Judiciary Acts Against Multiple Taxes on Digital Goods

House Judiciary Acts Against Multiple Taxes on Digital Goods


If you are one of the millions of people using their wireless device to download a song, book, game, ringtone or app, you got some good news today. The U.S. House of Representatives Committee on the Judiciary took a major step in the right direction for you by marking up the ‘Digital Goods & Services Tax Fairness Act,’ (H.R. 1860).

(For those of you who don’t know the hip legislative lingo, a markup is when they go through the process of reading through the bill, offering and debating amendments, and voting on whether or not to report the bill to the full House of Representatives with those amendments included).

This bipartisan and pro-consumer bill will fix the current law and will protect you from being taxed multiple times on the same digital purchase.

As it stands today, you’re at risk of paying taxes on the same transaction to multiple states at the same time. For example, if your number is billed in Virginia, but you happen to be in Maryland, and you buy a digital good from a company in California who’s using a server in Texas, it’s conceivable that all of those jurisdictions could claim the right to tax you for your purchase. I know it’s outrageous, but it could happen and the legislation passed out of committee today will prevent that from occurring.

The next step is for the full House of Representatives to take up the bill, and we hope that it happens sooner rather than later. The bill also has a companion in the Senate, S. 971, which is gaining support.

So speak up now and ask your Representative and Senators to support this important legislation! We’re going to stay on top of this to make sure you’re kept up-to-date with the bill’s progress. Your support has been extremely helpful in getting it this far, but we’re all going to have to do more to get Congress to pass and give you the protection you deserve.

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