Tuesday, November 29, 2016

Some cities (esp. in California) want to impose a "streaming tax"

More cities in California are considering adding "streaming" taxes that would, at first, mainly affect Netflix viewers, as explained in this Los Angeles Times story.  Illinois and Pennsylvania also have cities with some similar taxes.

It would seem that the taxes could affect other streaming services, like Amazon Prime and iTunes.

Is it based on hours watched, or simply based on the monthly subscription rate?

I thought it was common for Amazon to charge sales tax on mp3 and digital movie rentals and purchases online as retail events, in some states.

But cities are trying to claim that this is a "utility" tax.

Could "free" websites be affected? 

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