Computer software and digital goods

From the 2024 DOR Tax Exemption Study

82.04.120(2)(e,f) - Computer software and digital goods Description Manufacturing B&O tax applies to the production of prewritten computer software when the producer transfers the software by means of tangible storage media. Manufacturing B&O tax does not apply to the production of software transferred electronically, or to the production of digital goods. Purpose To reduce confusion and complications concerning the B&O tax liability incurred by the production and sale of prewritten computer software and digital goods. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would not increase revenues. There are no taxpayer exemption savings associated with this definitional clarification. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions This definitional clarification results in no taxpayer savings. Data Sources None Additional Additional Information Information Category: Tax base Year Enacted: Software, 2003; Digital goods, 20