Multistate Tax Commission Expands Digital Product Research

The Multistate Tax Commission has expanded its research on digital products to include new emerging issues in the tax treatment of prediction markets and cryptocurrency.

The expansion adds several alternative taxes enacted in states such as Illinois, Maryland, and Washington over the past year that impose levies on data collection, digital advertising, social media, prediction markets, and cryptocurrency.

The staff attorneys with the intergovernmental tax agency acknowledged that technology and tax structures have evolved since the group was formed in 2021 to draft a report on the tax treatment of digital products.