Name: KAKE NEWS INVESTIGATES: Outdated state laws lead to unequal sales tax charges for streaming services
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KAKE NEWS INVESTIGATES: Outdated state laws lead to unequal sales tax charges for streaming services

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Posted:Thursday, April 30, 2020 11:00 PM EDTUpdated:Thursday, April 30, 2020 11:00 PM EDT"It's really confusing why one's taxing and one's not taxing when essentially it's the same service, just different provider,” said Andrew Gaylor of Hutchinson.From Netflix to Disney Plus and YouTube TV, subscriptions to these services are booming during this coronavirus pandemic.But what you may not know is that your bill could be higher than your neighbors for the exact same service and the reason confuses even state lawmakers.Some call it a Netflix tax, a sales tax on streaming services and digital downloads for everything from movies and TV shows to music and audio books.&nbsp;&nbsp;Some of you are paying it.&nbsp;&nbsp;Some of you aren’t.&nbsp;“I was looking through my statements because it's an automatic charge from my accounts and I noticed that it was higher than it previously was,” Andrew said.That was in January.&nbsp;&nbsp;Andrew reached out to Disney to find out why he was suddenly paying an extra 60 cents for their Disney Plus service.“And they told me that it was sales tax,” Andrew said.&nbsp;&nbsp;“That Kansas started implementing sales tax on January 16 of this year.”Except, Kansas hadn’t.&nbsp; That was the week the governor's budget team proposed taxing streaming services.“We must confront the stark inequities, the outdated inefficiencies, and expensive loopholes riddled throughout our tax code,” Gov. Laura Kelly said during her State of the State address that week.As shoppers moved from main street to the internet highway to buy things like movies and audio books the sales tax laws didn't follow.Thirty-three states have since changed that.&nbsp;&nbsp;In January Gov. Kelly proposed joining them in a move the state estimated would bring in more than $38 million next fiscal year alone.&nbsp;&nbsp;And that was before Netflix, by itself, added 16 million new users during the pandemic.“So, if Gov. Kelly's proposing it, then why would they already be taxing that?” Andrew asked.&nbsp;The Kansas Department of Revenue told KAKE News that “subscriber based streaming services do already collect and remit taxes to the state based on legislation passed in the 1970s” from “cable, community antennae and other subscriber radio and television services.”Whether streaming entertainment services fall into that category depends on who you ask.&nbsp;&nbsp;The Department of Revenue says some companies “see themselves as falling into the definitions” from that 1970s law… others don’t.”“That's part of the confusion,” said Rep. Steven Johnson, R – Assaria.Johnson chairs the Kansas House Committee on Taxation which is working one of the two proposed “Netflix tax” bills.&nbsp;&nbsp;“Whether it just applies to those physical pieces and not the digital? I don't know that that's clear in the statute for them to figure out. We think it's currently not included, but it's one of the many issues that needs to be addressed here,” Johnson said.A quick survey of the KAKE newsroom showed it didn’t necessarily matter what service you were getting, just who you purchased it through.&nbsp;&nbsp;One person was paying sales tax for HBO Now, another wasn’t.&nbsp; The same thing for YouTube TV.&nbsp;&nbsp;The only difference?&nbsp;&nbsp;Whether they purchased them through another service or through a mobile app.Lawmakers say this is clearly a case of the law not keeping up with technology.&nbsp;&nbsp;Is it something that's going to get solved this session?“I believe so,” Johnson said.&nbsp;&nbsp;“I believe we'll have something that at least says, where is that line drawn? Are digital goods in or out?”But that was before the legislature went home early to prevent the spread of covid-19.&nbsp;&nbsp;Since the pandemic has brought the statehouse to a standstill the bill remains in limbo.Meanwhile, Andrew still wants to know what’s happening with the sales tax he’s already paying.“If it's less than $1 for me, and they, I mean, Disney's probably got 100,000 so subscribers at least here in the state of Kansas, that's…a lot of money that's going somewhere,” Andrew said.&nbsp;&nbsp;“And if it's not supposed to be taxed, where's the money going?”The state said it couldn’t tell us whether Disney Plus is even turning in sales tax dollars to Kansas due to privacy laws, let alone how much.&nbsp; So, we emailed multiple Disney media contacts to ask them.&nbsp;&nbsp;A month later we’ve gotten no response.&nbsp;&nbsp;If that changes, we’ll let you know.Check out these photos from across KAKEland snapped by our viewers, staff and local officials. Do you have pictures to share with us? Email them to .

Posted:Thursday, April 30, 2020 11:00 PM EDTUpdated:Thursday, April 30, 2020 11:00 PM EDT"It's really confusing why one's taxing and one's not taxing when essentially it's the same service, just different provider,” said Andrew Gaylor of Hutchinson.From Netflix to Disney Plus and YouTube TV, subscriptions to these services are booming during this coronavirus pandemic.But what you may not know is that your bill could be higher than your neighbors for the exact same service and the reason confuses even state lawmakers.Some call it a Netflix tax, a sales tax on streaming services and digital...

KAKE NEWS INVESTIGATES: Outdated state laws lead to unequal sales tax charges for streaming services

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