Lawmakers in Georgia are looking to extend the state’s sales and use tax to digital goods and services. If House Bill 594 is enacted as written, audiovisual works, electronic books, video games, and a host of other digital products and services would be subject to sales and use tax starting July 1, 2021.
The bill defines “digital goods or services” as follows:
A digital code (i.e., a key, activation, or enabling code that provides a purchaser with a right to obtain one or more specified digital products; this doesn’t include a code representing stored monetary value deducted from a total when used by the purchaser, or a redeemable card, gift card, or gift certificate that entitles the holder to select specified digital products of an indicated cash value)
Rights, licenses, or benefits delivered electronically to enhance, maintain, update, renew, upgrade, or expand benefits for specified digital products or prewritten computer software
Specified digital products or prewritten computer software delivered electronically to an end user, regardless of whether the rights to access or utilize are permanent or less than permanent, or whether the end user must make continued payments for the right to use or access
Specified digital products or prewritten computer software for which rights may be permitted for access or use, and for which possession is maintained by the seller or a third party, regardless of whether charges to access or use are on a per use, per user, per license, subscription, or some other basis. See more here.