Back in May, YouTube TV started messaging customers in select states about changes to the taxes they pay. YouTube TV is reportedly upgrading its systems that calculate taxes and, in select states, will be charging more for sales taxes and use taxes in states that apply these taxes to streaming services like YouTube TV.
Now customers are starting to report that, for the first time, they are seeing additional taxes being added to their bills.
Here is the email YouTube TV sent customers back in May 2023:
We are writing to let you know that YouTube TV will be upgrading its internal system used to calculate the sales and use taxes applied to monthly subscription fees. The upgrade may result in an increase in the required taxes applied to your monthly subscription.
This change will begin rolling out to customers on June 15 and will be reflected in your subscription billing no later than July 29. To view transition related to your subscription, please visit your account settings.
If you have recently suspended your YouTube TV service, please disregard this message.
If your state does not have taxes that apply to YouTube TV, you may not have received an email. If you did get an email you should take a look at your next YouTube TV bill as you may see it higher than you have in the best.
It is unknown why YouTube is making this change now. It is uncertain if they found an error in their system that was under-reporting taxes or if they are passing along these taxes to the customers now.
This news comes as YouTube TV was the only live TV service to add subscribers in 2023. According to the research firm MuffettNathanson that tracks streaming services and cable TV. Google does not officially release numbers but according to MoffettNathanson, YouTube TV added 300,000 subscribers in the 1st quarter of 2023.
During that same period, Hulu with Live TV lost about 100,000 subscribers. Sling TV lost about 200,000, and Fubo lost about 160,000 subscribers.
Did your bill go up recently? If so what state are you in and by how much did it go up?