Many California Munipalities are planning or are nearing the completion of a special Tax measure nicknamed “Netflix Tax”, every municipality (City, Town or County area) gets a ‘kickback’ in a tax charged to customers by the various Cable Companies in relation to the household receiving Cable TV service. As more and more cut the cord and stop getting cable service through the traditional means cash strapped Cities are looking for a way to get money from those that no longer use traditional TV services.
Unfortunately what this means is that people with streaming TV services are going to be taxed in these locations, now it becomes an issue of whether a person returns to the days of sitting reading a book or listening to an audio book or just the radio or pays fee’s just like they were doing with through Coaxial and OTA TV services.
It’s really not fair, it means that a burden must be placed on the streaming media companies to know where their customers reside and what if they have to charge a fee you visit the City’s in question and it’s identified by location. Netflix for example would have to identify the location of the user either by asking more details about them. Amazon Prime Video has this information but again it means charging extra to the customers in those locations.
How could they do this?
It worries me that they may choose, rather than have the Streaming Media entities do the taxation that they implement it by creating a tax on the use of the internet so that all those that get internet service have to pay a tax on their internet, something that California does not currently do. Meaning that we all pay a penalty if we live in the City.
Would the Internet service providers charge based on whether a person streams ergo snooping on the customers usage and would taxation take place for people that watch Youtube?
So exactly how far will they go. I know that if my City chose to do this it would be time to look for a new City and possibly State to live in.