Taxation of digital products in Massachusetts at a 6.25% rate increases costs for consumers purchasing e-books, music downloads, software, and streaming services. This may influence consumer purchasing behavior, potentially reducing demand or encouraging businesses to adjust pricing strategies. For businesses, it necessitates accurate tax collection and remittance, adding compliance responsibilities. However, it levels the playing field between digital and physical goods, ensuring digital products contribute fairly to state revenue. This supports state funding while promoting fairness in the digital marketplace, encouraging businesses to integrate tax compliance into their sales processes.