I have been a Netflix streaming customer for a couple of years. Every month, Netflix takes $7.99 out of my Paypal account and my service works when I turn on the TV. This month, though, when I got my statement that funds were transferred, it said I paid $8.53 to Netflix. Hold on. I don't remember getting a message saying that rates were going on. A quick mental calculation told me that the $.54 was tax.
I logged in to my Netflix account to confirm my suspicion and when I verified that I had, indeed paid tax for January, I began a live chat with a representative. She was not able to tell me why I was paying tax when I wasn't before. She asked if I moved to another zip code, I haven't. Since she couldn't figure it out, she issued me a credit for $.54. A day later, I got an email from Netflix.
This is what my email said:
"As of 01/01/2014 "Digital products" will be subject to tax when sold for permanent use or less than permanent use.
Digital products include electronically transferred audiovisual works, digital audio works, and digital books.
Digital products does not include sales to or by a cable service provider."
I'm not sure that streaming Netflix would fit this description. I can't save the movies to my hard drive so what I have is more like cable. Do you use Netflix? Are you being charged tax this year?