'Netflix Tax' Goes Into Effect In Pennsylvania
PITTSBURGH (KDKA) – Netflix subscribers will have to pay more to watch movies starting today thanks to a series of new taxes.
The new taxes were part of a revenue package passed by the Legislature and signed by Gov. Tom Wolf to fill a $1.3 billion hole in the state's new $31.5 billion budget.
The state's existing 6-percent sales tax will now be extended to digital downloads and subscription services like Netflix and Hulu.
This also includes music, e-books, apps, online games, and ringtones.
Magazine and newspaper subscriptions, as well as digital versions of the Bible, will be exempt from the digital downloads tax.
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The tax will be triggered when a customer uses an account with a Pennsylvania billing address.