Virginia is one of 12 states that does not apply a sales tax to streaming platforms, missing out on about $10 million a year.
Chris Wodicka at the Commonwealth Institute says lawmakers could help fund new priorities and balance the books during an economic crisis by modernizing the tax code.
“If you went to your local video rental place, probably those don’t really exist anymore but you would pay sales tax on that,” he says. “But if you were to watch the exact same thing from your home, getting it on demand, you wouldn’t pay tax on that at this point. So this is really just updating the tax code for changes in technology.”
During the pandemic, streaming services have boomed while people have been staying at home. That could be a lucrative source of tax revenue.
Virginia’s sales and use tax was last modified back in 2007, before services like Spotify or Apple Music even existed.
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by michael pope
june 16, 2020