North Carolina recently released guidance on the taxability of certain digital property. The general state, applicable local, and applicable transit sales and use tax rates apply to the sales price of certain digital property sold at retail. Tax applies regardless of whether the buyer has the right to use the property permanently or to use it without making continued payments.
The following items that are delivered or accessed electronically, and not considered tangible personal property, qualify certain digital property: (1) digital audio works; (2) digital audiovisual works; (3) digital books; (4) magazines, newspapers, newsletters, reports, or other publications; (5) photographs; and (6) greeting cards.
"Delivered electronically" means delivery by download, email, or other method. "Accessed electronically" means delivery by online access, generally through the use of a password or digital code.