December 9, 2021
Possible State Sales Tax Increases might Raise Netflix Subscription Prices

Netflix Customers’ Rates might Soon Increase but Not because the Streaming Service is Raising Prices

Some states legislatures are considering raising taxes which might result in an increase in Netflix streaming package rates…

If some state level lawmakers get their way, Netflix subscribers could incur a price hike. That’s not a decision made by the streaming service, but rather state governments raising taxes that are tacked onto every monthly subscription bill.

Possible State Sales Tax Increases might Raise Netflix Subscription Prices

State legislatures in Utah, Massachusetts, Illinois, Kansas, and Maine are currently in the process of studying ways to raise taxes for various expenses.

The reason for this is due to the fact that states’ economies, like those on the national level, are becoming more acclimated to an expanding digital world, where physical goods aren’t as numerous as they were in the past.

In other words, with the rise of streaming services and other digital purchases, it’s too big an amount for state governments to ignore when it comes to tax revenue.

CNBC reports:

“Around half of states in the U.S. have started taxing residents’ subscriptions to Hulu, HBO Now, Amazon Prime and the like within the past few years, primarily by extending sales taxes to these services — and some experts believe most other states aren’t far behind.”

Owen E. Richason IV

Covers social media, apps, search and like news. History buff, movie and theme park lover. Blessed dad and husband. Owen is also a musician and is the founder of Groove Modes.          

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