House Judiciary Committee Approves Digital Goods and Services Tax Fairness Act

The House Judiciary Committee cleared the Digital Goods and Services Tax Fairness Act (HR-1643) Wednesday on a voice vote. The bill would prevent multiple taxation of digital goods by setting sourcing rules for digital goods and services purchases, thereby implementing the Internet Tax Freedom Act’s ban on multiple taxes on e-commerce sales. HR-1643 would also bar discriminatory taxes on digital goods and services. “A bipartisan group of Judiciary Committee members have come together to level the playing field for the taxpayers,” said House Judiciary Chairman Bob Goodlatte, R-Va., in a news release. “In today's growing digital economy it is critical that there be clear rules of the road to protect consumers from multiple taxation.”