States that want to collect sales taxes from out-of-state Internet e-tailers are tired of waiting for Congress to act. As a result, they’re passing state laws to do so. Alabama, South Dakota, Utah and 10 other states have passed legislation that directly contradicts the standing national law that states can only apply tax to businesses with brick-and-mortar locations there. State legislators are hoping that by challenging the existing law, they will spur litigation and force Congress to re-examine the issue. Continue reading States Push Web Tax, Hoping to Spur Litigation and Legislation

Chicago recently extended its 9 percent “amusement” tax — originally intended primarily for live shows and sporting events — to include an array of online services. Now, subscribers to streaming services such as Netflix, Xbox Live and Spotify are fighting back with a lawsuit that contends taxing such digital entertainment should be ruled illegal. The policy challenge in Chicago could prove significant to the larger media industry since its outcome could possibly shape how cities and states could tax parts of the Internet economy in the future. Continue reading Lawsuit Claims Streaming Tax on Digital Entertainment is Illegal