Thune, Rep. Cohen Refile Digital Goods and Services Tax Fairness Act

Senate Communications Subcommittee Chair John Thune, R-S.D., and Rep. Steve Cohen, D-Tenn., led refiling Wednesday of the Digital Goods and Services Tax Fairness Act. The bill, repeatedly filed in recent Congresses, would prevent multiple taxation of digital goods by setting sourcing rules for digital goods and services purchases, implementing the Internet Tax Freedom Act’s ban on multiple taxes on e-commerce sales (see 1506010037). Texas' Rep. John Ratcliffe is lead GOP sponsor of the House version, and Oregon's Sen. Ron Wyden lead Democratic sponsor of Senate version S-765. The online marketplace is “a sometimes challenging environment for those who provide these services, particularly as it relates to how they are taxed by state and local governments,” Thune said. “Our bill modernizes existing laws to prevent multiple taxation and ensure these goods and services aren’t taxed at higher rates than what they would be if purchased in a brick-and-mortar store.” Digital goods and services “have become a driving force in our national economy,” Cohen said. “We should make sure consumers are treated fairly and are not taxed unfairly.”