Digital automated service - loaning or transferring money, or transferring financial instruments

From the 2024 DOR Tax Exemption Study

82.04.192(3)(b)(ii) - Digital automated service - loaning or transferring money, or transferring financial instruments Description Digital automated services are retail sales. However, the definition of digital automated services excludes the loaning or transferring of money or the purchase, sale, or transfer of financial instruments, including cash, accounts receivable and payable, loans and notes receivable and payable, debt securities, equity securities, as well as derivative contracts such as forward contracts, swap contracts, and options. As a result, income from these activities is not subject to sales tax. Sales tax may apply if the service is bundled with a taxable service or product offered exclusively in connection with a taxable digital product. Purpose To protect the sales and use taxes base, establish certainty in the tax code, maintain conformity with the streamlined sales and use taxes agreement, and encourage economic development. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $462.210 $479.980 $501.320 $525.180 Local Taxes $207.860 $215.850 $225.440 $236.170 Repeal of Repealing this exemption would increase revenues. exemption Potenti