The sale of a pre-recorded video that is accessed by subscribers or consumers in this state is subject to sales tax as the sale of access to a specified digital product. Subscribers or consumers are in this state if their residential or primary business street address is in this state.
The pre-recorded video remains subject to tax as the sale of access to a specified digital product if the video is offered on demand (to be viewed at any time) or if it is offered as a webcast replay that may be accessed at a scheduled date and time. Specified digital products may be sold with rights that permit the subscriber or consumer of the product to access the product at any time or only at a specific date and time.
Whether a live instructor is available during the online course does not change the taxability of the pre-recorded video, even if course participants can ask an instructor questions via email during or following the online course. Although participants can email questions to an instructor during or following the online course, which is a non-taxable component of this transaction, the true object of this transaction is access to a specified digital product. Therefore, the pre-recorded video remains subject to sales tax.