Lawmakers say department shouldn’t tax digital transmission

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MONTGOMERY, Ala. (AP) – Alabama legislative leaders are asking the Department of Revenue to cancel its plan to tax digital streaming services in the state.

Lawmakers in April sent a letter to revenue commissioner Julie Magee asking her department to withdraw its plan to tax video and audio services such as Netflix and Pandora.

The letter was signed by several members of The Alabama Legislature including Speaker of the House Mike Hubbard and Senate President Pro Tem Del Marsh.

The rule would require companies to pay a four-percent rental tax on all sales.

A copy of the letter obtained by The Associated Press says new taxes should be approved by the legislature.

Revenue officials have said the tax is not a new tax but only an update to existing tax code.