Syracuse, N.Y. — Netflix subscribers in New York can count on to see a rise of their payments this month.
The video streaming service isn’t elevating its month-to-month payment. It’s including in New York state and native gross sales tax for the primary time.
“We hope you’re having fun with every thing Netflix has to supply. Beginning on Dec 15, 2021, your native gross sales tax will probably be utilized beginning in your subsequent month-to-month invoice,” the corporate mentioned in an electronic mail to its New York prospects.
Netflix’s customary subscription plan prices $13.99. The state gross sales tax is 4%, and most counties, together with Onondaga County, cost 4%, too. So the full is 8% in most counties. That can add $1.12 to Netflix payments, bringing its month-to-month whole to $15.11 for the usual plan.
The cost isn’t the results of any change within the state’s tax legal guidelines. It stems from the streaming video firm’s launch in November of a mobile gaming service. Netflix prospects can now play choose video video games on their iOS or Android gadgets at no additional cost.
“All you want is a Netflix subscription — there’s no advertisements, no extra charges and no in-app purchases,” the corporate says.
Properly, it’s no additional cost for the service itself. However not like streaming video companies, video games are taxable in New York. So, for the primary time, gross sales tax will probably be added to Netflix buyer payments beginning Dec. 15.
“There was no change in New York state tax regulation or New York state tax division coverage in regard to streaming companies,” mentioned James Gazzale, a spokesman for the division.
Rick Moriarty covers enterprise information and client points. Acquired a tip, remark or story thought? Contact him anytime: Email | Twitter | Facebook | 315-470-3148
