Effective July 1, 2010, a new law in Wyoming (Ch. 64, H.B. 29, Laws 2010) imposes sales and use tax on “specified” digital products that are “permanently” used, possessed, and controlled by the purchaser, at the time that purchaser stores, uses, or consumes these products. 
This legislative move is geared towards catching in the taxability net those digital products that otherwise may have been considered exempt because they were not heretofore specifically listed as taxable in the existing legislation (Ch. 151, H.B. 283, Laws 2009), that taxes certain digital products as tangible personal property, namely electronically transferred digital audiovisual works, digital audio works, or digital books. H.B. 283 defines each as follows:
“Digital audiovisual works” [ ] means a series of related images that, when shown in succession, impart an impression of motion, together with accompanying sounds, if any.
“Digital audio works” [ ] means works that results from the fixation of a series of musical, spoken, or other sounds, including ringtones.
“Digital books” [ ] means works that are generally recognized in the ordinary and usual sense as books.
Who won’t be taxed? Vendors will not be subject to sales and use tax when purchasing those “specified” digital items purchased “for further commercial broadcast, rebroadcast, transmission, retransmission, licensing, relicensing, distribution, redistribution or exhibition in whole or in part to another person,” as such will be considered a wholesaler. Additionally, services provided by a trade association as part of a member benefit will not be subject to the tax. 
Filed under: E-Commerce, Legislation, SST, Taxability Tagged: | digital downloads, digital downloads tax, E-Commerce, Wyoming
