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Netflix, other streaming services taxes are here in some states and coming soon to more

August 19, 2017

Marvel's reluctant superhero Jessica Jones, portrayed by Kristyn Ritter on the eponymous Netflix series, is back this month in The Defenders. She's why I subscribe. But will I, and millions of others, keep watching if streaming services are taxed?

Giphy

It's the weekend, so that means binge watching. Especially with The Defenders — gotta get me some more Jessica Jones! — now out on Netflix.

I'm not alone in subscribing to a streaming service or two. It's a relatively cheap entertainment option, especially when you consider that the 10 or so bucks a month are still less than one night's price for two tickets to a movie theater and its overpriced concessions.

Tuning in for streaming taxes: But the cost of streaming could soon go up in some states. This week's Shout Out Saturday story from USA Today warns us that a "Netflix tax" is already imposed in some taxes and coming in more.

The national newspaper's Mike Snider writes:

"Your monthly bill for Netflix, Amazon, Hulu and other streaming entertainment services could go up soon as states such as Illinois try to find ways to offset declining sales taxes and other revenue shortfalls. Chicago, Pennsylvania and Florida have already passed a so-called Netflix tax, and cities such as Pasadena, Calif. have broached the issue."

Although the streaming taxes typically are less than $1 each month, Snider notes that over the months, and tacked onto multiple online subscriptions, they might add up to $50 or more each year.

Taxes keep expanding: Are you really surprised? Nothing is safe from taxes, or at least from being considered for taxation as states (and cities) look to plug budget holes.

As the digital offerings grow (CBS All Access this year, multiple Disney/ESPN outlets on the way), they make a mighty tempting target for tax collectors worried about their traditional retail tax bases shrinking.

If you're still a cable or satellite TV subscriber, you're likely paying tax on some premium services. My cable bill has added Texas tax on our movies package, special sports channels and HBO.

You can look at the streaming charges as the entertainment version of fees on electric cars that avoid state fuel taxes.

Or you can unplug from everything and read a book from your local library, which you already pay for via your taxes.

You also might find these items of interest:

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • Only a dollar? That’s a roughly 10% tax. Is there nothing they can’t keep their grubby mitts off of? Oh, wait, if it’s in our pocket, wallet, or account, they think they are entitled to some of it.

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