Netflix Tax?


By DeEtte L. Loeffler, J.D., L.LM, Taxation

Californians are watching less cable. Therefore, the state is seeing less revenue from the currently-instated cable tax. Major cities in California, such as Pasadena and Sacramento, are currently brainstorming ways to tax subscribers of video steaming services such as Netflix or Hulu. Using existing utility tax codes, these cities would attempt to expand the reach to streaming media subscribers. Critics of this effort argue that the government is submitting taxpayers to double taxation, because most users already pay a tax for Internet access.

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