A provision of the Governor’s Budget Reconciliation and Financing Act (BRFA) (SB 152/HB 87) is drawing increased scrutiny due to its potential impact on Maryland’s technology sector. Pages 33 to 42 of the bill would impose the state sales & use tax on the sale of “digital products.” It’s easy to initially assume that the new language only applies to the listed items of downloaded music, books and e-cards. However, a closer look makes it clear that the language is very expansive and would apply to a vast array of products that are downloaded electronically. Legislative staff has confirmed the expansive interpretation. The Comptroller’s staff told the House Ways & Means Committee last week that they need to look at the language more closely to determine its impact.