SB 1392 Summary

• Defines and establishes tax treatment for digital products: prewritten computer software (regardless of delivery method) and specified digital goods transferred electronically are subject to state transaction privilege tax, while specified digital services and remotely accessed digital goods are excluded from tax.

• Specifies that "specified digital goods" includes digital audiovisual works, digital audio works, and digital books; "specified digital services" includes software-as-a-service, platform-as-a-service, infrastructure-as-a-service, hosting services, data storage, streaming services, and other cloud-based computing services.

• Establishes sourcing rules for prewritten computer software and specified digital goods based on seller and purchaser locations, with an exception allowing deduction of entire sale for multi-state use if purchaser provides a multiple points of use certificate.

• Authorizes cities and towns to impose transaction privilege or use tax on prewritten computer software and specified digital goods transferred electronically, but prohibits local taxation of specified digital services and remotely accessed digital goods.

• Amends motor vehicle warranty refund provisions to clarify tax refund calculations when manufacturers replace vehicles or accept returns.