The Vermont Tax Department followed the Governor’s recommendation that the sales tax not be  expanded to tax more types of digital goods.  Vermont first imposed the tax on “specified digital goods” last year by overriding the Governor’s veto.  The bill recently killed would have expanded that tax to include “products transferred electronically that would be taxable if delivered on tangible storage media….”  Despite the Tax Department’s initial statement that it was only trying to tax electronic photographs and greeting cards, the proposed language would have undoubtedly hit many more digital products.  Currently, ringtones for cell phones and digital downloads of books, videos, and music are subject to the sales tax.  To read more about the testimony before the House on February 11 concerning this matter, click here.