Michael writes, "My Netflix bill for this month was just debited - $7.99 plus 0.56 sales tax. This is the first time a tax had been levied against my Netflix streaming-only service. When I called Netflix, they said that 20 states recently passed legislation to make digital goods taxable effective 01 November 2011. I can find no news stories or other information online to corroborate their assertion.
I contacted the SC Department of Revenue, where I live, and they stated that they have no record of this particular tax, and referred me to the DOR Letter of Ruling for Online Subscription Services. I saw a reference to the Digital Goods and Services Tax Fairness Act of 2011, but to my knowledge this is still in Congress, and has not yet become law."
I'm not an expert on sales tax, but it seems like every year more and more states are taxing Netflix rentals.