Pennsylvania 'Netflix Tax' Could Become an Expensive Trend
Cutting the cord has been the money-saving move du jour for penny-pinching bingewatchers, with services like Netflix, Hulu, Amazon Video, and — don't you dare judge me — the WWE Network giving people viable online alternatives to cable services.
But in Pennsylvania, CBS Pittsburgh reports, costs are going up across the digital board as a result of the so-called "Netflix tax."
When Sales Tax Attacks
Pennsylvania is now joining the crowd of states and cities (including Chicago and Minnesota) that have begun charging sales tax on digital goods.
This one covers the video services listed above, as well as streaming music subscriptions like Apple Music, and downloads of music, apps, and eBooks. (Magazine and newspaper subscriptions are exempt, as are digital editions of the Bible.)
Because the 6% tax only applies to accounts with Pennsylvania billing addresses, there are obvious, if dubious, dodges for now. But it looks more likely than ever that these taxes will soon apply in most, if not all, areas.
Readers, will this new tax affect your online streaming habits? Will you cut down on your subscriptions, or is even a taxed Netflix still the best value for you? Share your thoughts below!