Multistate Tax Commission Expands Digital Products Work Group

The Multistate Tax Commission has expanded its digital products work group to include several emerging issues related to taxation, including prediction markets and cryptocurrency. This move comes as part of a multistate initiative studying the tax treatment of digital products. The commission acknowledged that technology and tax structures have evolved since the group was formed in 2021.

The expanded scope will also cover levies on data collection, digital advertising, social media, and prediction markets, which are alternative taxes enacted by states such as Illinois, Maryland, and Washington over the past year. Staff attorneys with the intergovernmental tax agency stated that technology and tax structures have evolved since the group's formation in 2021 to draft a report.

The addition of these emerging issues is expected to provide guidance on how to apply existing tax laws to new digital features, as states aim to adapt their tax codes to the rapidly changing digital landscape. The commission has acknowledged that technology and tax structures have evolved since the group's formation in 2021.