Amazon Prime Memberships Taxable in Iowa

Jan 13th, 2017

The Iowa Department of Revenue recently ruled that Amazon Prime memberships are taxable.

Amazon Prime is a subscription service. It includes access to content and services including streaming video and music.

The Department found that the memberships are bundled transactions. Bundled transactions are sales of two or more products for one price. They are taxable if any of the products are taxable. Iowa taxes "pay television," which includes streaming video services. Because Amazon Prime includes pay streaming video services, it is taxable.