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NEW YORK MAY TAX MOVIE RENTALS ON NETFLIX AND AMAZON

November 15, 2013 by · Leave a Comment 

Cash-strapped state governments are increasingly casting a jaundiced eye on tax incentives to lure the movie industry, and now a commission appointed by New York Gov. Andrew Cuomo is proposing not only that such tax deals be cut back but also that the state’s sales tax be extended to “digital products” such as e-books and magazines and streaming video services like Netflix and Amazon. “The State currently forgoes $35 million per year by not taxing digital products. Revenue losses will increase as technological change accelerates,” the report says. “Twenty-three states now tax digital products to protect against the erosion of their tax bases and to level the playing field between online retailers and Main Street businesses.” The commission recommends that New York become the 24th state to do so. As for the tax credit aimed at luring big-budget movie productions to New York, the commission recommends that they “be scaled back because it does not appear to pay for itself in its current form.”