New Legislation: Tax on Digital Products

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New Legislation: Tax on Digital Products

Earlier this year, the state of Minnesota passed legislation that requires sales tax to be charged and collected on "digital products."

This is effective as of July 1, 2013 and defines digital products as "any product that is transferred electronically to a customer, except for prewritten computer software." A published fact sheet on the legislation lists common examples of digital products including music or movie downloads, ring tones for phones, digital books and online games. 

It has also come to our attention that webinars - both live and pre-recorded - fall into this category, however the specific requirements about webinars have not been explicity defined.

Until they are, please reference this MN Department of Revenue fact sheet (.pdf). We will post any further updates to this legislation as we learn of them.

by Tara Loftus

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