Beginning in 2026, Maine will join more than 30 states that tax streaming entertainment services like Netflix and Spotify.
Such services will be subject to the state sales tax rate of 5.5%. That means a subscription costing around $20 a month will increase by about a dollar. More costly streaming channels like YouTube TV will increase by about five dollars.
State lawmakers have considered taxing streaming services going back to 2017 when it was first proposed by Republican Gov. Paul LePage. Democratic Gov. Janet Mills has also proposed it, but the legislature did not approve it until last spring when it was included in the state's biennial budget.
The move comes as state legislatures try to capture tax revenues migrating from cable services to streaming platforms.
The Maine tax is projected to yield about $12 million annually in state revenue.
