ILLINOIS — Your next Netflix bill could see a big increase.
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.
First, it was a sales tax on sugary drinks up for debate in the statehouse. Up next, lawmakers are trying to tax streaming services like Netflix and cable packages to help raise money to balance the budget.
“When they [lawmakers] started talking about it, they were going to apply the sales tax on more items, but then bring the rate down, but now they’re just expanding it to more items and keeping the rate the same.”
The amendment is in its beginning stages. 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.
However, some people understand, to get out of this financial mess, action needs to be taken sooner rather than later.
“I think they’re trying to do anything possible to try and get our budget back.”
This amendment is part of the package of bills making up the grand bargaining plan. In addition to taxing streaming services, the bill would also expand a sales tax on other services like laundry, tattoos, tanning and more.
“Taking money out of our pockets to help something that we have not even started, we are not the reason our state is broke, so it’s just very messed up.”
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.