On February 22, 2021, the Georgia House of Representatives introduced H.B. 594, which would impose the Georgia sales tax on digital goods or services. The bill amends the definition of tangible personal property, subject to sales tax, to include “digital goods or services.” It defines digital goods or services to include: (1) specified digital products or prewritten computer software delivered electronically to an end user, (2) a digital code that provides a purchaser with a right to obtain one or more specified digital products (excluding gift cards), (3) specified digital products or prewritten computer software for which rights may be permitted for access or use and for which possession is maintained by the seller or a third party, and (4) rights, licenses, or benefits delivered electronically to enhance, maintain, update, renew, upgrade, or expand benefits for specified digital products or prewritten computer software. However, the bill does not specifically repeal O.C.G.A. 48-8-3-(91) which provides an exemption for “sales of prewritten software which has been delivered to the purchaser electronically or by means of load and leave.” A specified digital product includes digital: audiovisual works, audio works, books, artwork, photographs, periodicals, newspapers, magazines, video greeting cards, audio greeting cards, or video games. If passed, this law would become effective on July 1, 2021 and would be applicable to transactions occurring after that date.
