States have recently sought to adopt targeted taxes on digital advertising, commercial data collection, social media platforms and other digital services.
State proposals to tax these digital services and/or digital service providers broadly encompass a number of business models and, in some cases, have questionable legality under federal and state law, or reflect poor tax policy decisions.
As a result, these proposals have encountered legal complications and policy concerns, and our team has been on the forefront of these issues on a national scale.
Addressing the challenges of taxing the digital economy
Legislative efforts and associated policies haven’t been clear-cut. States have proposed legislation with different structures, different rules and different legal challenges. For one business working across multiple states, or even in a single state, the rules are vague.
Our team works closely with clients, industry groups, and policy makers to make sense of these efforts and curtail the unintended consequences of state digital services taxes, or DSTs.
For more tailored advice, our lawyers can help you stay on top of the latest state-by-state proposals and controversies on the taxation of the digital economy with a broader understanding of how they interplay with international efforts. All you need to do is get in touch.