Local Government Tax Trend. Fund Projects with a Netflix tax.

The latest city to dabble in a Netflix tax? Pasadena is 1 of 40 California cities considering it

How does a Netflix tax work? 

• Treats Streaming services, like Netflix, as a utility thereby imposing a tax
• For Pasadena, the proposed tax rate is 9.4%

The Opposition: The trade group, The Internet Association

The oppositions argument:

• streaming services are not like a utility
• where does the tax stop? do we tax podcasts and streaming music?

NY Times | California Today: Fretting Over the ‘Netflix Tax’