Sending Office: Honorable Steve Cohen
Reintroduction of the Digital Goods and Services Tax Fairness Act
We live in an increasingly digitized world. Digital goods and services make consumption of entertainment media more convenient and have a lighter carbon footprint than their tangible analogs. In addition, many vital health, education, and computer systems
have turned to digital goods and services to increase the reliability and efficiency of access to important data.
The lack of a uniform framework for state taxation of digital goods and services has led to a patchwork of state tax laws that confuses consumers and stifles the digital economy. Without tax simplification in this area, consumers risk being taxed by multiple
jurisdictions for a single download. Discriminatory taxes will also discourage the new, innovative, emerging technologies and products that American inventors continue to develop.
To curb discriminatory taxation of digital goods and services, I invite you to join me in cosponsoring the Digital Goods and Services Tax Fairness Act. This bill ensures that consumers are not taxed at a higher rate for purchasing digital goods than they
are for purchasing tangible goods. Additionally, the legislation requires a state to use the address of the consumer to determine whether it has authority to tax a digital purchase, not the state through which a consumer might have been merely passing when
he or she purchased the digital product. The bill also precludes discriminatory “utility” type taxes from being imposed on digital goods and services solely because they are transmitted over communication networks.
I hope you will join me in supporting our 21st century digital American economy and ensuring that consumers are not unfairly taxed simply because they prefer to consume goods and services in digital rather than tangible form. For more information or to cosponsor
this legislation, please contact Alex Lipow at
firstname.lastname@example.org or 5-3265.
Member of Congress
e-Dear Colleague version 2.0