Sales tax on Netflix? State budget proposal could add to your bill
The state budget presented to lawmakers by Kansas Gov. Laura Kelly comes with a recommendation to add a sales tax on online services where you can watch your favorite movies, play your favorite video games and listen to your favorite music.
The tax on "all sales of digital property and subscription services," includes music and video games you download and streaming services including Netflix, Hulu, Disney+ Amazon Prime, etc...
The added sales tax to "all sales of digital property" would take effect July 1, the proposed budget says. Specifically, the recommendation says "digital property and subscription services include digital audio-visual works, digital audio works, digital books, artwork, digital photographs and pictures, periodicals, newspapers, magazines, video, audio and other greeting cards, graphics, applications (desktop, mobile, web, and cloud-based) games (online, video, and electronic), digital codes and streaming services."
The proposed budget says for fiscal year 2021, (starting July 1, 2020), taxing digital property and subscription services would increases the state's revenue by about $26.7 million and is estimated to increase local government tax revenue by about $6.7 million.
The 2020 legislative session kicked off this week and lawmakers expect to make final approval of the state's 2021 budget in May. The current sales tax in Kansas is 6.5 percent.
Just from the state, a streaming service that costs you $10 per month would tack on additional 65 cents to your monthly payment.