This one state will start paying a "Netflix tax" today – and we're worried it will spread
Less than a year after learning that Netflix would be raising their monthly subscription premium, we have additional, super sad Netflix news for the residents of one particular state. Citizens of Pennsylvania, listen up: Your addiction to online streaming might cost a little more… starting today. 😧
Straight from CBS News, here’s what’s happening:
“The state’s existing 6-percent sales tax will now be extended to digital downloads and subscription services like Netflix and Hulu. This also includes music, e-books, apps, online games, and ringtones.”
There will be some exemptions, though – such as magazine and newspaper subscriptions, along with digital versions of the Bible and certain textbooks. (But, still. UGH.)
The “Netflix tax,” as some are calling it, will help to offset a $1.3 billion hole in the state’s budget. WTAE reported that the tax could bring in an additional $47 million for PA. (Wowza!) Plus, as Marie Claire pointed out, this isn’t the first tax of its kind. The city of Chicago proposed extending its 9% “amusement” tax to Netflix and other digital subscriptions last year. However, citizens filed a lawsuit against the tax in September 2015.
Though the Pennsylvania tax isn’t as much as the Chicago tax, we’re still freaking out – because what happens if this tax spreads? What happens if, in the not-so-distant future, ALL 50 STATES must pay the price to enjoy an hour or two (or three) of Netflix?!