During the 2009 Session the Legislature passed Engrossed Substitute House Bill 2075, which clarifies the definition of a “digital personal good” and sets some basic rules for taxation of intangible electronic products. An intangible electronic product means a digital good or service such as a digital book, digital audio and video files, ringtones, etc.

The bill Governor Gregoire signed will have a wide impact on businesses in Washington, particularly because our state has such a large high-tech industry.

Understanding the new rules will be important to businesses in Washington that are involved in the selling of digital goods or services. There are both benefits and some concerns with the new law.

Read the full Policy Note here