Illinois’s Department of Revenue released two tax letters (GIL 24-0036 and GIL 24-0044) confirming downloaded computer software–including video games, game add-ons, and virtual currency–count as tangible personal property and are subject to Illinois sales tax.

The bottom line: Illinois considers downloaded computer software, including video games, in-game items, and virtual currency, to be taxable tangible personal property. For example, even if a basic game or purchase is free, taxes apply to any virtual items or upgrades bought within a game.

Louisiana passed a new digital products tax bill that will broadly tax digital products and services. The bill includes a provision clarifying that “digital product“ does not encompass cable TV services, direct-to-home satellite services, video programming services, or satellite digital audio radio services.

The bottom line: SaaS and subscription-based digital goods are taxable in Louisiana starting January 1, 2025.

Voters in Georgia approved a new proposed constitutional amendment that would create a dedicated tax court within the judicial branch, possessing the same judicial powers as a superior court. Appeals from this specialized tax court would proceed directly to the Georgia Court of Appeals, eliminating the current requirement to first go through the Fulton County Superior Court.

The bottom line: This change could make the appeals process more efficient for taxpayers while reducing the caseload burden on the Fulton County Superior Court.

North Carolina ruled that online subscription fees for accessing or using digital products—which include digital videos, books, and audiobooks—are taxable.

The bottom line: In the petitioned case, the taxpayers were using software applications and database systems for content delivery, but the customers' payments were specifically for accessing the digital content itself (not for the underlying software infrastructure that facilitates this delivery). And while some non-taxable services were included in these subscriptions, they were part of a bundled package with the taxable digital content and cannot be purchased separately.

A new Pennsylvania law will improve the state‘s tax appeals process by creating formal settlement conferences at the Board of Finance and Revenue (BFR). A designated settlement officer will now oversee these conferences to help taxpayers and the Department of Revenue reach agreements.

The bottom line: Companies undergoing an audit in the state of Pennsylvania can request a settlement conference or be called into one by the state’s department of revenue or the BFR. Participation is optional for all parties.

Nova Scotia will reduce its Harmonized Sales Tax (HST) rate from 15% to 14% on April 1, 2025. The provincial portion will decrease from 10% to 9%.

The bottom line: The government has published transitional rules explaining which rate applies to transactions occurring around the implementation date. Businesses should ensure any necessary system changes and invoicing updates are made before April 1, 2025.