• by Wendy Davis , Staff Writer @wendyndavis, August 3, 2016

Pennsylvania residents who pay for Netflix, Hulu or other over-the-top video services must now cough up an additional 6% sales tax on their subscriptions.

The new tax on electronic media, which took effect this month, also covers downloads, music, e-books, online games and ringtones. Pennsylvania officials hope the extra revenue -- which reportedly could total $47 million -- will offset a $1.3 billion budget shortfall.

The state isn't the first locale to tax streaming video. Thirteen months ago, Chicago imposed a 9% “amusement tax,” which applies when people stream TV programs, music, movies or online games.

Unlike Pennsylvania, Chicago is not also taxing media downloads.

Soon after Chicago's tax took effect, a group of residents sued to overturn the measure. They raised a host of arguments, including that the tax violated the federal Internet Tax Freedom Act by taxing online material at higher rates than comparable offline material.

The residents also argued that the tax is unconstitutional because it effectively regulates interstate commerce -- a task that only Congress is empowered to do.

Late last month, a judge in Illinois refused to dismiss that lawsuit in its entirety. Judge Carl Walker in the Cook County Circuit Court threw out several of the residents' allegations, but ruled that they could proceed with claims including allegations that the law is unconstitutional and that it violates the federal Internet Tax Freedom Act.

Pennsylvania's move comes as a growing number of states are passing laws requiring online retailers like Amazon to collect sales tax. As of now, Amazon reportedly collects sales tax in 28 states.