Gov. Janet Mills (D) has again proposed implementing a tax on streaming service subscriptions in Maine that would raise the cost of most popular entertainment streaming by 5.5 percent.
Although lawmakers ultimately rejected the governor’s efforts to include a streaming service tax in the supplemental budget signed into law in 2024, Gov. Mills has again include such a provision in her latest proposed biennial budget.
[RELATED: Streaming Service Subscriptions May Soon Be Taxed in Maine]
If approved, Mainers would be required to pay a 5.5 percent tax on the cost of their streaming service subscriptions.
Among other updates to the portions of state law governing taxation of taxable services, Mills proposed including “digital audio-visual and digital audio services.”
Under the language put forward by Mills, “digital audio-visual and digital audio services” were defined as “the electronic transfer of digital audio-visual works and digital audio works to an end user with the right of less than permanent use granted by the seller, including when conditioned upon continued payment from the purchaser or a subscription.”
Although cable TV premiums and the sale of digital media are currently taxed under state law, subscription-based streaming services have thus far been exempted.
When Mills previously proposed implementing a tax on streaming services, the clause was removed by lawmakers before approving a final version of the supplemental budget.
The Appropriations and Financial Affairs (AFA) Committee unanimously agreed to not include the proposed tax in the final version of the supplemental budget. Both the Democrat and Republican Committee reports were reflective of this decision.
[RELATED: Tax on Streaming Service Subscriptions Rejected by Maine Lawmakers]
Sharon Huntley — Director of Communications for the Department of Administrative and Financial Services — told the Maine Wire in March of 2024 that this provision was included at the time to “streamline, simplify, and modernize provisions of the sales tax to better align it with the practice of other states across the country.”
Huntley went on to explain that “this is not a new proposal,” noting that former Gov. Paul LePage (R) “proposed to include digital streaming services under the sales tax in 2017” and Mills “offered a similar proposal in 2020.”
“The proposal would align the taxation of these various forms of consumption of essentially the same content, regardless of the method in which it is consumed, by applying the sales tax to the sale of digital audio-visual and digital audio services,” said Huntley.
After Mills released her supplemental budget, Republican lawmakers came out in opposition to the proposed streaming service tax.
Sen. Jim Libby (R-Cumberland) brought attention to the proposed tax at a press conference held in March of 2024.
“Guess who gets hit? My constituents,” Sen. Libby said. “My constituents are all getting hit with a download fee of anything they do that is subscription based.”
“In this digital age, everything is subscription based. Everything is downloaded,” Libby continued. “You got to think about — down the road — how much we’re going to collect here as a state in this new tax.”
The streaming service tax included in the proposed biennial budget released Friday is not the only new financial imposition that Mills recommends making.
Also included in the budget are new fees assessed against various health care providers, including hospitals, ambulances, and pharmacies.
The budget also suggests increasing various taxes and licensing fees, such as for tobacco, cannabis, and concealed carry permits.
<span class="dsq-postid" data-dsqidentifier="34050 https://www.themainewire.com/?p=34050">15 Comments
So the internet is FINALLY working well enough ( other than when the wind blows ) to watch Netflix .
Now our least favorite governor of all time wants to pile on some MORE taxes on it .
Janet Mills YOU are such a POS .
STOP THE STUPID STUPID STUPID SPENDING!!!!
Same woman who advised everyone that for your own safety, to wear a mask even when outside, alone, in the woods.
But of course, ANYTHING but tax THE RICH.
If the Communist Democrats would stop wasting millions luring & supporting welfare seekers from around the world, we would be talking tax decreases.
Will the illegals getting free cable have to pay this tax?
RECALL PETITIONS! She wouldn’t be able to get her budgets passed if we had more republicans in the legislature.
Just another reason to move to a state that doesn’t abuse the people quite as much. People sometimes don’t believe me when I tell them what Maine does and taxes. Once I explain people always say, Why would anyone want to live there?
I live in a place that don’t have sales tax or any other ridiculous absurd tax. I can live for days or months without owing the state anything. You cannot do that in Maine. Lawmakers in Maine seemed more focused on making lawbreakers and keeping the poor trapped. When I read articles like this It makes me realize once again leaving Maine forever was the right choice.
Despicable Maine But we do have folks who can shoot up the town and the Governor does nothing but ask for more taxes.
I just started 3 weeks ago this web income system that my friend recommended to me and I’ve gotten 2 checks for a total of $9,200… this is the best decision I made in a long time! This v5 extra cash has changed my life in so many ways, thank you!
Here is I started_______ Rebrand.ly/homejob99?77857
Enough is enough JANET… Resign..
People are just going to get a P.O. BOX or a PMB in NH and move their billing to that P.O. Box, after I would imagine some people who can will start planning on selling and moving to NH or another state that is not run like a train-wreck as Maine is currently being run like.
A commie spends you into oblivion and then all the leach sheep call for higher taxes.
All we need is CNN…and censored Facebook right?
I have a better idea and it doesn’t include any new taxes.
Why don’t you make all these cell providers reposition these existing towers to equally distribute the signal to everyone. Right now as it is there’s a tower that is sitting below the tree line approximately 20 feet below the trees. What do you think that does to the signal? How many other towers are sitting in the same position as mine is?
Every time there’s a state election some idiot in the race always says let’s bring the internet to the rural areas across the state. Expand, expand!
Let’s be truthful here if my closest tower is below the tree line interfering with my signal and everyone else’s signal in my area. Then why should I be charged full price for a weak and at times very poor signal by the cell carrier? That’s got to be as ridiculous as herring politicians screaming let’s bring the internet to the rural areas of the state. And you want to stick a tax on it.
INVEST IN DEPORTATION!