Maine lawmakers proposed a bill to begin taxing digital goods beginning Oct. NBCUniversal, parent company of CNBC, is launching a streaming service, Peacock, in April. This tax play on the state level comes as more providers are starting to offer streamed content. Chicago has also levied a similar city tax since 2015. Allen, associate commissioner for tax policy in Maine's Department of Administrative and Financial Services, testified earlier this month in the state legislature. Twenty-two states plus the District of Columbia currently tax streamed video or audio media, Michael J. Spokespeople for those streaming services firms did not respond to requests for comment. A subscriber who signs up for Netflix, Hulu, Disney Plus, Amazon Prime Video and HBO Now would pay almost $4 extra in tax each month, in addition to roughly $63 in subscription fees. However, the costs mount for those subscribing to multiple services. For example, a subscriber to Netflix's premium service would pay an extra $0.96 a month, for a grand total of $16.95. State sales taxes have gradually increased over the past few decades, to an average of 6% today, according to Brainerd.įor some consumers, a 6% sales tax might not seem like much. "Movie theaters charge a tax, and Netflix should be treated the same," Lamont added. "Today we live in an Amazon economy, which is driven by e-commerce, digital downloads and consumer services. "Our current sales tax is designed for a Sears Roebuck economy driven by over-the-counter sales," Ned Lamont, the governor of Connecticut, said in a budget address last year in support of a streaming tax. Some states have also begun taxing other services, such as tanning, landscaping, dry cleaning, interior design work, dating referral services, and pet grooming and boarding.Ĭonnecticut has added 20 such services, the most in the country, over the past decade, Brainerd said. It's not just streaming that state tax authorities are eyeing. Only about a third of consumers' expenses today relate to tangible personal property - about half the share back in 1930, according to Jackson Brainerd, a senior policy specialist at the National Conference of State Legislatures.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |