Cities' Transaction Taxes Threaten Digital Content Cos.

Stephen Kranz, Mark Yopp and Eric Carstens wrote this bylined article on the growing trend of cities seeking to impose transaction taxes on the sale or rental of digital content. The authors wrote that “the local governments are addressing the issue without clear legislative authority, by issuing administrative guidance and taking aggressive positions on audit,” and predicted “it will be difficult, if not impossible, for companies to comply with such regimes.”