Digital goods or automated services for the public

From the 2024 DOR Tax Exemption Study

82.08.0208(2); 82.12.0208(2) - Digital goods or automated services for the public Description Purchases of digital goods and digital automated services are exempt from sales and use taxes when acquired for the purpose of making them available to the general public at no charge. Purpose Promotes fairness and consistency in the tax code. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.069 $0.070 $0.072 $0.075 Local Taxes $0.031 $0.031 $0.033 $0.034 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.064 $0.072 $0.075 Local Taxes $0.000 $0.029 $0.033 $0.034 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the taxable sales growth rates reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - Local revenue estimates use the statewide average local sales and use taxes rate of 2.92 %. Data Sources - Department of Revenue, Excise tax data - Economic and Revenue Forecast Council, March 2023 forecast Additional Additional Inf