"Netflix Tax" May Be Coming Soon To Your Bill

Posted by Megalith 9:56 AM (CST)

Saturday November 26, 2016

While the bill is on hold due to fierce competition, one California city is trying to impose a tax on streaming services. Chicago is currently being sued for charging a 9 percent tax on video streaming, while Pennsylvania’s charging a 6 percent sales tax on everything, from apps to downloads, to help close a $1.3 billion budget gap.

The Pasadena city council has been taking heat for weeks, after announcing a 9.4 percent tax on streaming video. They’re calling it a utility, so it can be taxed like water and electricity. "My constituents do not want this tax," Tyron Hampton said. "Even if it is just a couple of dollars. It is being taxed twice." Pasadena City Councilman Tyron Hampton says the surprise tax was designed to make up for lost tax revenue from people getting rid of cable TV and home phones. Hampton said, "I read it multiple times, I was like, when did this happen?"