RICHMOND, VA – Virginians could soon see new taxes tacked onto their favorite digital subscriptions — from Netflix and Disney+ to Xbox Game Pass and PlayStation Plus — under a major tax expansion proposed in the General Assembly this session.
House Bill 900, introduced by Delegate Rip Sullivan (D–Arlington), would extend the state’s sales and use tax to “digital subscription services,” a broad category that covers streaming entertainment, gaming memberships, and other online content platforms. The bill defines a digital subscription as any service purchased electronically for ongoing access to digital media or software, including the use of digital codes to obtain those services.
The measure represents one of the most extensive updates to Virginia’s tax code in years. It targets the growing digital economy by treating online subscriptions the same way physical goods are taxed in stores. Lawmakers backing the plan say it’s a necessary step toward a fairer, more modern tax system that reflects how consumers spend in a digital world.
Critics argue the proposal amounts to a new tax on everyday entertainment and technology, warning that Virginians will see immediate increases in their monthly bills for streaming, gaming, and software subscriptions. Consumer groups have also raised concerns that the tax could impact students and remote workers who rely on digital services for education and productivity.
Revenue from the digital service tax would be directed primarily toward transportation funding, according to the bill’s language. The legislation is part of a larger effort to broaden the sales tax base, which also includes taxing certain home services and pet care businesses.
- House Bill 900 would apply state sales tax to digital subscriptions such as streaming and gaming services.
- Lawmakers say the plan modernizes Virginia’s tax structure and funds transportation improvements.
- Opponents warn the measure will raise household costs and burden digital consumers.
The bill has been referred to the House Committee on Finance for debate. If passed, Virginians could soon see state sales tax charges appear on their streaming, music, and gaming bills — marking a significant shift in how the Commonwealth taxes the digital age.
