More States Move to Tax Netflix




It seems states are starting to feel the pain of cord cutting. Taxes on cable TV are a major part of many state budgets, and as millions of Americans dump cable it is starting to hurt state budgets.

So now a growing list of states are looking at taxing Netflix and other streaming services. The newest state is Louisiana as they move to add a 5% tax to streaming services. This is less expensive than the 9% Chicago charges and the 6% Pennsylvania charges, but it still adds up.

Cord cutting is still less expensive than what you would pay for cable TV. As paying 5% on $10 is a lot cheaper than paying 5% on an average of $100 to $150 a month.

As of right now the bill is only in the proposal stages. So there is still time to reach out and let your voice be heard.

The Governor’s office said in a statement:

“The taxation of services is a direct recommendation of the HCR 11 Task Force, a bipartisan group created by the legislature in 2016, to expand the sales tax base and allow for a reduction in rates,” said Dept. of Revenue Secretary Kimberly Robinson. “ With the fifth penny of the state sales tax rolling away that will mean less revenue for the state coffers.  The task force sees this as a viable option for increasing tax dollars and cleaning the remaining pennies of the sales tax.  The streaming services are a part of the proposal to tax digital products.  If you purchased a book or music CD at Barnes and Noble, you would pay sales tax on the purchase price.  The proposal would ensure sales tax is paid if the book or music CD is downloaded from a website electronically and delivered to a digital device.  The same would be true for renting a movie or streaming television.  There is no proposal to tax access to the internet; there is a federal moratorium on taxing internet access.  A service such as Netflix, that is delivered over the internet is not a tax on access to the internet.”

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