A multistate initiative studying the tax treatment of digital products will add several emerging issues to its research project, including levies on data collection, digital advertising, social media, prediction markets, and cryptocurrency.

The Multistate Tax Commission expanded the scope of its digital products work group on Tuesday to include several “alternative taxes” enacted in such states as Illinois, Maryland, and Washington over the past year that impose levies on new features of the digital economy. Staff attorneys with the intergovernmental tax agency acknowledged technology and tax structures had evolved since the group was formed in 2021 to draft a report …