Streaming Services + Local Wire Tax in Texas? Welcome to 2020

What’s happening? The City of New Boston wants streamers pay 5% of their local gross revenue as a fee

What’s the City’s argument?

• The rules in Texas are that streamers have to file an application with the Public Utility Commission of Texas for certification
• Netflix and Hulu did not
• Even though they didn’t they still have to pay the quarterly franchise fee.

is this new and novel? No, of course not, it’s been tried before and is still pending in court in Missouri from a 2018 suit by Creve Couer, MO. There Netflix said it isn’t a video service provider and thus the rules did apply.

What does this smell like? A revenue generating issue for a pandemic Legislature.

Hollywood Reporter | Texas Town Sues Netflix, Hulu Over Utility Fees

Law 360 | Netflix, Hulu Want Texas City’s Bid For Wireline Fees Tossed