Despite other states’ willingness to forego such legislation, Wyoming has passed a bill that subjects Wyoming businesses to sales tax collection for sales of “specified digital products” to Wyoming customers.  The Governor signed HB 29 on March 8, 2010.

UnfairDownloadTaxes.com  previously outlined why other states have not enacted such legislation, noting the adverse impact it would have on both their in-state businesses and their ability to attract new business investment. 

Wyoming’s legislation subjects “specified digital products” such as music, movies, and books to sales tax.  Supporters of UnfairDownloadTaxes.com were successful in limiting the scope of the new tax. The final bill imposes the tax on digital goods if the purchaser has permanent use, possession, or control of the product.  

Amidst intense competition to attract technology business investment, Wyoming is likely to lose out on new business development to other states, including North Dakota, California and New York, that have rejected this kind of new tax. The bill will also harm existing Wyoming businesses by subjecting them to sales tax collection requirements not imposed on out-of-state sellers.