SB 1460 Summary

• Establishes a new "digital goods classification" under transaction privilege tax (TPT) with a 5% tax rate on sales, leases, and licenses of prewritten computer software and specified digital goods (audiovisual works, audio works, books, and visual works).

• Excludes digital services (cloud-based or remotely accessed software) from state and local TPT, while taxing specified digital goods and prewritten computer software at the same rates as other retail goods.

• Creates a use tax on prewritten computer software and specified digital goods for out-of-state purchases, with the same 5% rate plus an additional 0.6% rate through June 30, 2041.

• Prohibits cities and towns from separately taxing digital services or specified digital goods that are excluded from state taxation, while allowing them to tax prewritten computer software and specified digital goods under the same terms as the state.

• Applies to taxable periods beginning the first day of the month following the bill's effective date, with certain provisions contingent on conditions prescribed in prior legislation.