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Beginning August 1, 2016, the movies and music you have been downloading just got 6% to 8% more expensive for Pennsylvanians. As part of the new budget, Pennsylvania passed legislation that imposes sales tax on electronic downloads. Sales tax is now applied to items received electronically or digitally or by streaming, unless, they are otherwise exempt. According to the Pennsylvania Department of Revenue, this includes music, or any other audio, video, such as movies and streaming services, e-books and any other matter that would be taxable if received as printed matter. It also includes apps and in-app purchases, ringtones, online games, canned software, as well as any updates, maintenance or support of these items.
Please contact us with any questions regarding the new electronic downloads tax and visit the Our Thoughts On blog for more articles on state and local tax.
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