Some cities ask for tax on streaming services like Netflix

NEWPORT NEWS, Va. (AP) - Some cities and municipality groups in Virginia like the idea of a tax on streaming services such as Netflix and Spotify.

The Daily Press reported Saturday that cities such as Newport News and groups such as the Virginia Municipal League say it will generate more local tax revenue.

They’re asking state lawmakers to apply the 5 percent Communications Sales and Use Tax to streaming service subscriptions. The tax currently applies to subscriptions for cable television and satellite radio as well as traditional cell phone plans.

The change would mean that a monthly bill for a basic Netflix package, $7.99, would jump by 40 cents. A premium monthly subscription for Spotify, $9.99, would increase by 50 cents.

A majority of states don’t tax streaming services.

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Information from: Daily Press, http://www.dailypress.com/