Netflix Streaming Suits Highlight Tax-Tech Mismatch

Overview


Arthur Rosen called it troubling that, when deciding their sales and use tax approaches to such new technology-based services as online video streaming, too many state Department of Revenue employees think, “Is there some classification we could try to squeeze this new service into and impose tax?” Mr. Rosen called it a milestone that some states have structured legislation on video streaming so that the legislature must decide affirmatively to impose tax on digital goods. “Lawmakers have to have the political will to go ahead and impose a tax, and not let the revenue department sneak it in another way,” he said.