States Revise Tax Rule to Include Streaming Revenue

A team of state tax administrators recently approved an update to long-standing tax rules that will now include streaming services and on-demand programming. The Multistate Tax Commission workgroup gave the green light to the revision of their broadcasting special industry regulation, marking a significant shift in how income from broadcasters is apportioned across multiple states.

The original regulation focused on taxing revenue from traditional television and radio broadcasting. However, with this update, income generated from streaming and on-demand video and audio platforms will also be included. This change reflects the evolving landscape of media consumption and ensures that all forms of broadcasting are accounted for in state tax policies.

This decision paves the way for the proposal to be considered as a new model for states to follow. By expanding the rule’s boundaries to encompass a wider range of broadcasting formats, state tax administrators are adapting to the modern digital age. This update marks a significant step towards ensuring that tax regulations keep pace with technological advancements and changing consumer behaviors.