Are State Digital Services Taxes Off the Table? Don’t Count On It
The rumors of DST’s death are greatly exaggerated, and tax leaders should keep a close eye on developments.
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“Any intelligent fool can make things bigger, more complex, and more violent. It takes a touch of genius—and a lot of courage—to move in the opposite direction.” ― Ernst F. Schumacher
Given the dramatic transformation of telecommunications taxes and technology in recent decades, it will take extensive knowledge to manage the extreme complexity of line-based taxation requirements confronting telecommunications providers. While a handful of U.S. jurisdictions have shown a willingness to attempt to simplify its line-based taxation process, the demand for more telecommunications technology and services, shrinking state revenues, and the likelihood of new telecommunications-tax legislation are considerably more likely to intensify line-based taxation in the short term.
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