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Jul 10, 2012

CompTIA Urges Action on Digital Goods Legislation

Washington, D.C., July 10, 2012CompTIA, the non-profit association for the information technology (IT) industry, today issued the following statement.

The House Committee on the Judiciary recently voted out H.R. 1860, better known as the Digital Goods and Services Tax Fairness Act of 2011. This legislation would define a “bright line” to determine which state is permitted to tax the sales of digital goods or services. It also would prohibit discriminatory taxes on digital goods and services by requiring states that choose to tax these products to do so at the same sales tax rate as applied to non-digital products.

This legislation does not authorize taxation of digital goods or services; it simply provides that the state encompassing the tax address of the purchaser has the right to collect a tax. This is important to small businesses, because it will eliminate potential compliance and tax costs resulting from two or more states claiming authority to tax a single transaction.

“By establishing clarity over which state has the jurisdiction to tax a particular transaction, the Digital Goods and Services Fairness Act can help resolve uncertainties that plagues small businesses,” said Todd Thibodeaux, president and chief executive officer, CompTIA. “Small IT businesses, in particular, provide digital goods and services across state lines, and could potentially face competing claims by several states. This legislation brings certainty and therefore savings in tax compliance costs.”
CompTIA urges the full House to take swift action on this bill. 

“At a time when many small businesses continue to be buffeted by an uncertain economy, we believe this legislation helps relieve regulatory confusion, allowing small businesses to focus their attention where it’s most needed: on building and growing their businesses,” Thibodeaux added. “We also call on the Senate Finance Committee to pass its version of this legislation, S.971, out of committee.”

About CompTIA
CompTIA is the voice of the world’s information technology (IT) industry. Its members are the companies at the forefront of innovation; and the professionals responsible for maximizing the benefits organizations receive from their investments in technology. CompTIA is dedicated to advancing industry growth through its educational programs, market research, networking events, professional certifications, and public policy advocacy. For more information, visit www.comptia.org or follow CompTIA at www.facebook.com/CompTIA and twitter.com/comptia.

CompTIA’s public advocacy group focuses on a broad array of issues affecting the IT industry, with particular emphasis on representing the interests of small and mid-sized IT companies and entrepreneurs, supporting an innovation and competitiveness agenda and addressing secure technology issues such as cyber security, data breach, privacy and more. For more information, visit http://www.comptia.org/publicpolicy.aspx.

Steven Ostrowski
Audrey Chang
The Harbour Group