The proposed bill introduces a new gross receipts tax on digital products sold in Minnesota, specifically imposing a tax of one percent on the gross receipts from retail sales of these products. The bill defines key terms such as "digital products," "digital products provider," and "gross receipts," and outlines the responsibilities of digital products providers regarding tax collection and reporting. It also establishes a use tax for individuals receiving digital products from providers who have not paid the tax, along with provisions for tax credits for taxes paid to other jurisdictions. Additionally, the bill mandates that all exemptions applicable to existing sales taxes under chapter 297A also apply to this new tax.

Furthermore, the bill stipulates that all revenues from this tax will be deposited into the general fund, with a portion appropriated annually for payments to county auditors based on sales of digital products within their jurisdictions. These funds are designated for supporting local digital media, specifically for the operation of municipalities' local access channels. The effective date for this tax is set for sales and purchases made after June 30, 2023.