Netflix Prices Go Up And Are Now Taxable


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 Netflix Prices Go Up  And

Now The “Netflix Tax”

As Netflix prices go up subscriber beware the “Netflix tax” is coming.  One states legislature has recently extended its 6 percent sales tax to include subscription services like Netflix.  This state is Pennsylvania. Pennsylvania will join a select group that have added this local tax to subscription services.  There is already a 9 percent tax in Chicago called the “cloud tax”.  Minnesota is another example with a tax on digital goods.    Some states have tried to adding a telecommunications tax as a  way of adding tax without calling it sales tax.

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Although it’s called the Netflix tax,  the fee will also apply to music downloads, e-books and apps. Exempt from the tax will be any digital versions of newspapers, magazines and the Bible.

 

Netflix Prices

The cost of Netflix compared to cable is a no brainer.    With cost ranging from 9-12 dollars a month and cable almost quadrupling that it just makes sense.  Let’s do the math, even at the highest amount of $12 a month with “Netflix tax” of 72 cents brings the total month amount to $12.72.  Still seems like this isn’t that big of a deal.

Bottom line I think we can all just calm down and keep streaming, but if you need more reasons to keep Netflix check out 5 reasons to cut cable and join Netflix.

 

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