Alabama throwing out VHS, DVD tax in favor of streaming tax

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(WIAT) — The online streaming of digital content has taken over the home entertainment industry, and the state of Alabama is asking for its share of the pie.

The Alabama Department of Revenue has asked for a 4 percent rental tax to be applied to streaming services. This would include your Netflix and Hulu Plus accounts, as well as movie rentals through Amazon and Vudu.

The Department of Revenue said it is just a matter of keeping up with technology. They want to shift the 4 percent tax that was previously imposed on VHS and DVD rentals to online content.

The tax will go into effect on October 1 unless it is blocked by a legislative oversight committee.

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