Last month, we reported on Minnesota’s "Amazon Tax" bill that would require retailers with no physical presence in the state to collect sales tax on digital products purchased by Minnesotans.  Perhaps noting the unconstitutionality of the tax, another bill has been filed (HF 1980/SF 1839) that would require only instate retailers to collect and remit sales taxes on digital products.

In addition to music, movies, video games, and ringtones, the bill would vaguely impose a tax on "additional digital products" and would tax all goods for use on a "temporary or permanent basis."  This means almost all electronic goods are in the crosshairs: from software to streaming videos to virtually anything constructed with binary code.

Meanwhile, some states are enacting legislation to specifically exempt the sales tax on digital goods in an effort to drive retailers and tech companies to their states.  One just so happens to be North Dakota, which neighbors Minnesota and passed a bill just last month to this effect.

To read ATR’s joint letter with the Media Freedom Project and Property Rights Alliance opposing this legislation, click here.

Meanwhile, Kentucky recently passed HB 347 to impose a similar, but more tailored, tax hike on digital products.  So, beginning July 1st, residents can look forward to their taxes going up on online purchases.

Click here to read ATR’s letter of opposition to the Kentucky Senate Committee on Appropriations and Revenue on HB 347.