Law makes Netflix, not other sites, charge sales tax in Idaho
BOISE, Idaho (KBOI) - Idaho lawmakers are reviewing a law they passed last year that taxes videos bought on line. They say the problem with the law is that Netflix is the only one charging the tax. That's because Netflix has a facility in Idaho. State Senator Clifford Bayer (R) of Meridian said, "Other entities that don't have a brick and mortar in Idaho like Hulu and Amazon Prime, are also subject to this tax via their services. it's just that it will be collected by the user."The tax commission says if you're using other streaming sites, it's up to you to declare the tax. Idaho State Tax Commission Specialist, Mclean Russell says, "That use tax is very easily paid on your income tax return that you have to file anyway with the state of Idaho. It's a single line."
Lawmakers say it's not fair that one video streaming business is charging the tax and others aren't. "Most of them do not have that connection to Idaho where they are required to collect that tax, so they don't," Russell said.
The tax commission says that Netflix will continue to charge the tax until the law is changed. Lawmakers say they're planning on looking at the rule and try to correct the problem.
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