WASHINGTON — A House bill that would prohibit state and local governments from imposing taxes on certain sales of digital goods and services that are taxable under current law would cost governments $3 billion in forgone revenue each year, according to estimates from the Congressional Budget Office.

In total, lost revenues from the enactment of H.R. 1860 “would total between 1% and 2% of state and local sales taxes on all goods and services due in 2013,” CBO said. However, the percent of revenues lost by each state would vary and depend on the characteristics of each state’s tax system, the non-partisan agency said.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.