Video Streaming Services Subject to Tax in Kentucky

Effective July 1, 2019, video streaming services are subject to Kentucky excise tax and gross receipts taxes as taxable “multichannel video programming services.” The enacted legislation expands the definition of “multichannel video programming service” to include:

• Live, scheduled, or on-demand programming provided by or generally considered comparable to or in competition with programming provided by a television broadcast station
• Video streaming services

“Video streaming services” are defined as “programming that streams live events, movies syndicated and television programming, or other audio-visual content over the Internet for viewing on a television or other electronic device with or without regard to a particular viewing schedule.”

“Multichannel video programming services” are subject to:

• A 3% multichannel video program excise tax,
• A 2.4% multichannel video program gross revenues tax, and
• Any utility gross receipts license tax levied by a school district up to 3%

(H.B. 354, Laws 2019)