Tag Archives: Netflix Tax

Netflix Revenues Soar and These Georgia Lawmakers Want a Piece with ‘Streaming Tax’ on Citizens

Referred to as a digital goods and services tax, the idea is being proposed by the state House’s Rural Development Council. Its backers say the 4% tax would streamline the “deployment of wireless broadband.” – Tedra DeSue, CCN » http://bit.ly/2E7KnSg

Netflix will be bound by European content rules

Currently European TV broadcasters invest around 20% of their revenues in original content, compared to less than 1% for on demand providers. The Commission wants TV broadcasters to continue to dedicate at least half of viewing time to European works and will oblige on-demand providers to ensure at least 20% share of European content in their catalogues. At the same time the new Directive clarifies rules that allow member states to ask on demand services available in their country to contribute financially to Europeans works. – Julian Clover, Broadband TV News

Netflix tax plan on video streaming services coming soon to EU—report

According to a 32-page draft of the Audiovisual Media Services Directive obtained by Politico, European Union member states would be able to “impose financial contributions [direct investments or levies allocated to national film funds] to on-demand services in their jurisdictions.” In addition, the European Commission hopes to see 20 percent of on-demand video streaming services’ catalogues offered within the EU deriving from European productions. – Glyn Moody, Ars Technica

Chicago puts off tax for streaming services

photo: Elise Amendola, AP

Enforcement on the tax, which is actually not new, has been postponed from September to Jan. 1, 2016 so the city can help work with companies that are not complying. Under the measure, streaming subscription and pay-per-view services will have to collect a nine percent tax from their Chicago customers. – ABC 7 Chicago

Stop the Streaming Tax

photo: (Marcel De Grijs, Dreamstime)

Considering these services’ primary consumer demographic, it at first seems odd to see Democrats publicly challenge them through regulation and taxation, since their youngish base are the ones who do the most streaming. […] For Chicago Democrats, they have to shore up a $1 billion budget shortfall somehow, and brick-and-mortar video rentals have gone the way of travel agencies. However, unlike prior examples of Democratic attacks on business and consumers via tax and regulation, these new fronts are far more frequent and visible to the average consumer. All a Chicago millennial needs to do is unlock his smartphone and count the apps that are now more expensive because of a rule interpretation. – Samuel A. Rosado, National Review

Alabama rule change would tax streaming video


Alabama residents would pay a tax on pay-per-view and Internet-streamed entertainment provided by services such as Netflix and Hulu, under a new rule proposed by the Alabama Department of Revenue. […] The new rule would apply the tax to “digital transmissions, such as ‘on demand’ movies, television programs, streaming video (and) streaming audio.” According to an internal letter by Revenue Commissioner Julie Magee, streaming media are considered tangible under state law because they can be seen, heard and are “perceptible to the senses.” – Tim Lockette, The Anniston Star

Chicago’s “cloud tax” makes Netflix and other streaming services more expensive

Although the tax is technically levied on consumers, some companies are already preparing to collect it as part of the monthly bill. Netflix says it’s already making arrangements to add the tax to the cost charged to its Chicago customers. “Jurisdictions around the world, including the US, are trying to figure out ways to tax online services,” said a Netflix representative[.] – Russell Brandom, The Verge

Alabama considers tax on streaming movies, TV shows

Back in the days of the corner video store, customers would pay a rental tax every time they checked out a movie. However, with more viewers opting for online, Alabama is poised to lose millions. To solve this, the revenue department is proposing a new rule requiring companies pay a 4-percent state tax on digital transmissions such as “on demand” movies, television programs and streaming video or audio. – AL.com via Associated Press
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