§301.6. Digital products

            A. Nexus. For purposes of the taxes imposed under this Chapter and Chapters 2-A and 2-B of this Subtitle, the department shall not consider a person's ownership of, or rights in, digital products residing on servers located in this state in determining whether the person has substantial nexus with this state. For purposes of this Section, "substantial nexus" means the requisite connection that a person has with a state to allow the state to subject the person to the state's taxing authority, consistent with the commerce clause of the United States Constitution.

            B. Bundled transactions. (1) In the case of the sale of a digital code that provides a purchaser with the right to obtain more than one digital product, and which may also include the right to obtain other products or services, and all of the products and services, digital or otherwise, to be obtained through the use of the code do not have the same sales and use tax treatment, both of the following requirements apply:

            (a) The transaction shall be deemed to be the sale of the products and services to be obtained through the use of the code.

            (b) The sales and use tax shall apply to the entire selling price of the code, except as provided in Paragraph (2) of this Subsection.

            (2) If the seller can identify by reasonable and verifiable standards the portion of the selling price attributable to the products and services that are not subject to sales and use tax from its books and records that are kept in the regular course of business for other purposes, including but not limited to nontax purposes, sales and use tax shall not apply to that portion of the selling price of the code attributable to the products and services that are not subject to sales and use tax.

            C. Rules. The secretary may promulgate rules and regulations in accordance with the Administrative Procedure Act to implement the provisions of this Section, including rules addressing the taxation of any and all digital products and services. Any rule promulgated by the department pursuant to this Section shall be construed in favor of the secretary.

            Acts 2024, 3rd Ex. Sess., No. 10, §1, eff. Dec. 4, 2024.

            NOTE: See Acts 2024, 3rd Ex. Sess., No. 10, §5, which provides that in case of conflict between Acts 10 and 11, Act 11 controls.