Netflix will now have a sales tax attached to it in Pennsylvania. The 6 percent state sales tax in Pennsylvania will be extended to digital downloads and streaming subscription services like Netflix and Hulu.
The recently passed tobacco tax hike and application of sales tax to Netflix & Hulu go into effect in PA today https://t.co/rS4MMITcT5
— patrickmgleason (@patrickmgleason) August 1, 2016
Governor Tom Wolf signed a bill passed by state lawmakers that starting Monday the resources gained by this added sales tax will be used to help close the gap in a $1.3 billion hole in the state’s new $31.5 billion budget.
The subscription services will determine if a user should be charged the Pennsylvania sales tax by their mailing address. Users with a Pennsylvania mailing address will now be charged an extra 6% on their subscriptions.
Any business that uses these services will also be required to pay the sales tax and report it to the state Department of Revenue.