Wisconsin‘s Department of Revenue clarified its definition of digital goods in relation to how they are taxed, indicating new product definitions for digital service providers and SaaS companies to consider.

The bottom line: In Wisconsin, digital goods can include prewritten software accessed online (like video games), but not charges for remote software access when a service provider uses that software to process a client's data under their own control.

The city of Chicago has raised the amusement tax on streaming services from 9% to 10.25%. The city also raised personal property lease taxes on cloud computing from 9% to 11%. These tax hikes are going into effect as part of the city‘s attempt to manage its $900 million deficit.

The bottom line: These tax changes went into effect on January 1, 2025. Chicago‘s tax increases on streaming services and cloud computing signal continued complexity and heightened scrutiny in digital service taxation as the city tackles its budget deficit.

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.