They’re calling it a ‘Cloud Tax,’ but it is sounding more to consumers like a Netflix tax. As more consumers turn to streaming video on services like Netflix (NFLX) and Hulu, and music on Spotify, states are looking to fill the taxes lost on the sale of tangible media goods.
Annual U.S. sales of DVDs and Blu-ray discs has fallen from a high of $20.2 billion a decade ago to around $10 billion, according to data from the Digital Entertainment Group, while the Recording Industry Assocation of America reports shipments of CDs fell from $13.2 billion in 2000, to $1.9 billion last year.
In response, the city of Chicago is experimenting with having local taxes collected on cloud computing services and streaming music and video. Other state governments like Tennessee and Idaho are experimenting with new taxes as well.
http://finance.yahoo.com/news/why-you-ll-be-paying-a--netflix-tax--soon-161951515.html
Annual U.S. sales of DVDs and Blu-ray discs has fallen from a high of $20.2 billion a decade ago to around $10 billion, according to data from the Digital Entertainment Group, while the Recording Industry Assocation of America reports shipments of CDs fell from $13.2 billion in 2000, to $1.9 billion last year.
In response, the city of Chicago is experimenting with having local taxes collected on cloud computing services and streaming music and video. Other state governments like Tennessee and Idaho are experimenting with new taxes as well.
http://finance.yahoo.com/news/why-you-ll-be-paying-a--netflix-tax--soon-161951515.html
