Let’s hope you were able to get in all your binge watching before the new year, as online streaming entertainment may very well be the next thing that we enjoy slapped with a tax.
Many cities across the country have found that taxes from utilities have taken a hit with the rise in the number of people who have decided to “cut the cord” from cable companies. During the second quarter of 2016 alone, over 812,000 people cancelled their paid television subscriptions and switched to various streaming services like Netflix, Hulu, and SlingTV, which only require internet access.
As that telecom tax revenue continues to fall off, cities across the country are losing approximately $50 dollars (much more in larger cities) per cable subscriber in tax. Accordingly, lawmakers have discovered a brand new source of revenue in digital entertainment.
It’s called the “Netflix tax,” and it is beginning to be included as part of different cities’ amusement, sales, and, in some cases, even utilities tax.