An article published by State Tax Notes discusses how streaming services (Cable Services, Amusements and Tangible Personal Property) are often taxed by states and local jurisdictions under existing statutes that predate the technology, a move that has prompted litigation around the country, with mixed results.
State and Local Tax attorney, David Hughes, stated that most of the fees and taxes at issue in those suits "seemed designed to apply to a particular product or service or industry, and they were adopted at a time when the state or [locality] had a particular product or industry in mind."
Breen Schiller said it would likely be particularly difficult to expand existing taxes on the broadcasting industry because of how regulated the industry is. "There are not only state and local provisions governing broadcasting services, but there is an extensive amount of federal laws doing the same and the reasons for doing so are not arbitrary," she said.
The full article, "Legal Challenges Follow State, Local Taxes on Streaming Services," was written by Andrea Muse and published by State Tax Notes on October 22, 2018 for its subscribers.