Every so often something new and different comes along in the
world of state and local tax that does not fit within the existing
conceptual frameworks and rules. For example, the delivery of
digital books and other digital media in place of physical media
upended sales tax systems that historically had applied mainly to
sales of tangible property. Now the increased use of
cryptocurrencies and the growing marketplace for nonfungible tokens
(NFTs) is another instance of such technological innovation. This
innovation will require governments and their taxing authorities to
consider how to apply existing tax law, and whether existing tax
law should be expanded and/or modified. Unfortunately, seldom do
state taxing authorities adopt standardized, uniform approaches
when addressing most any aspect of tax policy and procedure.
Therefore, we expect that purchasers, sellers, and…
