Public Chapter 514 (2015) subjects the sale, lease, licensing, or use of video game digital products to sales and use tax in the same way that digital books, movies, and music are subject to sales and use tax. The effective date on this legislation was July 1, 2015.
A video game digital product is the permanent or temporary right to access a video game when the possession of the video game remains with the seller or a third party. In other words, the video game cannot be downloaded onto the user’s own computer. (The sale of a video game that is downloaded onto the purchaser’s computer remains a sale of computer software, and it is governed by a different sales and use tax law.) For more information, please read important notice 15-13.