The Low Down on Taxing Streaming Services in 2021

What’s happening? As people stop paying for cable, the fees/taxes associated with cable are a revenue loss for local governmental entities. To make up for this revenue loss, the proposal that gains ground is taxing streaming services.

Why is this important?

• Connecticut, Delaware, and Florida have passed a dedicated streaming service tax.
• Chicago applies its 9% amusement tax on streaming services
• OH is trying to apply the Fair Competition in Cable Operation Act to tax streaming
• Some Texas cities are trying to apply the Texas Video Service Providers Act to tax streaming services
• MO argues streaming should be taxed as  video service providers
• Courts are grappling with the above and lawsuits in Arkansas, Georgia, Indiana, Nevada, and Tennessee.

How will this be important? Some states tax right-of-way fees for internet access, taxing streaming services could be seen as a double taxation.

Tax Foundation | Cutting the Cord from Cable Has States Courting New Revenue Streams