Since streaming services are taking over, few local and state governments want in by taxing the platforms. Netflix and Spotify have 60 million subscribers and will continue to rise.
Some local and state governments are not providing enough tax revenue. So, the Virginia Municipal League came up with this idea to tax streaming services. Presently, the tax doesn’t employ “digital products delivered electronically.” However, the supporters want the state to use the Communications Sales and Use Tax. With taxing, Spotify, Apple Music or Amazon Music Unlimited would leap to $10.49. Netflix would charge 40 cents more to $7.99. “The way, particularly, municipalities rationalize this is, ‘Well, we don’t have Blockbuster Video anymore. We were charging them tax, that’s got replaced by streaming services like Netflix, So for us, it’s just replacing one tax with another for the same exact service.’” – Larry Downes, Project Director of Georgetown University’s Center for Business and Public Policy
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