Digital automated service - data processing

From the 2024 DOR Tax Exemption Study

82.04.192(3)(b)(xv) - Digital automated service - data processing Description Digital automated services are classified as retail sales and are subject to retailing B&O tax. However, digital automated services exclude data processing services from the definition of digital automated services, so they are instead subject to the service and other activities B&O tax classification. Data processing services includes automated services to extract information from customer-supplied data including check processing, image processing, form processing, survey processing, payroll processing, claim processing, and similar activities. Any services beyond the bare processing itself would disqualify an activity. Purpose To protect the sales and use tax base, establish certainty in the tax code, maintain conformity with the streamlined sales and use tax agreement, and encourage economic development. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $21.964 $22.808 $23.822 $24.956 Local Taxes $0.000 $10.257 $10.713 $11.223 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from fu