Your next Netflix bill could see a big increase. Illinois lawmakers are making another attempt to increase the sales tax on internet streaming services to help balance the budget.
The amendment would apply a 6.25% sales tax, to not only internet streaming sites like Netflix and Spotify, but your next cable bill could also see a higher amount due, if the measure is approved.
The amendment is in its beginning stages. Illinois Policy Institute President and CEO Kristina Rasmussen says there are too many unanswered question in the amendment. “If you’re a college student from Illinois, that is now living in another state, or are we going to tax people who might be coming through O’Hare and watch a movie at the gate? They’re ready to board the plane, but they’re not from Illinois, but they’re watching a movie in Illinois.”
The bill does not clarify. It could also impact restaurant and bar owners. Those subscribed to satellite TV and purchase a sports package, your next bill could see hundreds of dollars in new taxes.
This amendment is part of the package of bills making up the ‘grand bargain’ plan. In addition to taxing streaming services, the bill would also expand a sales tax on other services like laundry, tattoos, tanning and more.
The amendment was filed last week. There could be some debate this week. It has yet to be called for a vote.
The idea for taxing streaming services is just one of many amendments being filed to help raise the income tax. Another idea was to tax sugary beverages and impose taxes on payroll services.