A measure approved by the state’s governor will tax the sales of computer software and services in Mississippi while exempting software that is stored outside of the state from sales and use taxes.

Gov. Tate Reeves, a Republican, signed S.B. 2449 on Tuesday. According to the bill, digital goods including music, games, and books would all be subject to the state’s 7% sales and use tax. This also applies to computer software and services. It further states that software that is accessible online and is kept on a server located outside of the state is exempt from sales and use tax.

The law will go into force on July 1, 2023.

Sen. Josh Harkins, R-Flowood, the head of the Senate Finance Committee, proposed the legislation on January 16. With votes of 50-0 in the Senate and 89-18 in the House, it was passed.

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