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Department of Revenue in Alabama Issues Proposed Regulation Taxing Digital Streaming Services 19 March 2015

AlabamaDepartmentOfRevenue

The Alabama Department of Revenue has issued a proposed regulation that, if finalized in its present form, would substantially expand the scope of the state and local rental tax applied to VoD platforms and other digital streaming services.

The expanded rental tax would be imposed on certain “cable or satellite television providers, online movie and digital music providers, app stores, and other similar providers of digital transmissions.” For the purposes of sourcing, a digital transmission would be taxable by Alabama and those localities that levy a parallel rental tax if it is “used in Alabama.”

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