Is The Price Of Your Streaming Service Going Up? Here’s Why You Could Pay More


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The cost of streaming services may be going up, and it is not because these service platforms are charging more. Many states are reportedly looking to tax monthly streaming services such as Netflix, Amazon Prime, Hulu, and more.

The price increase for streaming services will come as a tax to consumers as they shift to these online platforms for their entertainment needs. As the purchase of CDs, DVDs, and other entertainment products reportedly declined, so did the tax base for some states, CNBC said. .

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About half of states have already started taxing streaming subscriptions with more states looking to add a tax on streaming services that could include Maine Illinois, Kansas, Massachusetts, Alabama, Louisiana, and Utah, according to the news outlet.

“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 in 2019. “Today we live in an Amazon economy, which is driven by e-commerce, digital downloads and consumer services.

“Movie theaters charge a tax, and Netflix should be treated the same,” he said.

The additional tax on streaming services could cost consumers less than $1 per service, but add up over multiple platforms that could reportedly cost households $4 to $5 per month on top of their additional streaming subscription fee.

To date, 22 states charge a streaming tax with states such as Arizona and Missouri banning such a tax altogether. States such as Alaska, Montana, Delaware, New Hampshire, and Oregon don’t have sales taxes at all.

 

Source:- ibtimes

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