SB 1329 Summary

• Adds definitions for "digital goods" and related terms (digital audiovisual works, digital audio works, digital books) to Arizona's transaction privilege and use tax statutes, excluding telecommunications services, ancillary services, computer software, and internet access from the digital goods definition.

• Classifies prewritten computer software and digital goods as "tangible personal property" subject to transaction privilege and use tax in sections 42-5001 and 42-5151.

• Establishes sourcing rules for leasing digital goods, requiring gross receipts to be apportioned to the location where digital goods are used through a lease factor calculation.

• Updates statutory language throughout sections 42-5001, 42-5040, 42-5151, and 44-1263 for gender-neutral terminology and grammatical corrections.

• States the act clarifies statutory intent and ratifies historical administrative interpretation without providing substantive changes to existing law.