Streamers beware, the ‘Netflix tax’ has officially arrived. Yesterday, August 2nd, Pennsylvania became the first, and as of now the only, state to apply a digital goods tax to streamed products — think Hulu, Netflix, Spotify, or any other streaming service.
Back in April, Netflix caused waves by announcing they would be upping their monthly subscription fee. Now, the price of unlimited movie options has just gotten a little higher. These new state taxes, signed by Gov. Tom Wolf, stretch Pennsylvania’s already existent 6% sales tax to streaming services in order to fill a $1.3 billion budget gap.
Needless to say, this news upset many Pennsylvanian citizens and avid digital streamers alike.
Netflix Tax #PAproblems
So you are going to tax us for being lazy??— PA Problems (@PennsylvaniaPro) August 2, 2016
Pennsylvania, looking to fill a budget gap, has imposed, as of today, sales tax on Netflix & Hulu. They’re pushing it.
— Amadi (@amaditalks) August 2, 2016
Pennsylvania is taxing netflix spotify and apple music. I CANT EVEN AFFORD TO PAY TAX ON A BAGEL HOW DO YOU THINK IM GONNA PAY FOR THIS
— Not Ricky (@Ricky_Tran_) August 2, 2016
As for one of the companies who will be affected by Pennsylvania’s new tax, according to the Wall Street Journal, Netflix will push back on case-by-case basis against state efforts to implement the tax. Amazon, Hulu, or Spotify have yet to make any comments. Let’s hope the new season of Orange is the New Black drops before the pesky tax reaches your state.
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