Cities may try to tax streaming services like Netflix and Hulu

BY BRADEN CARTWRIGHT
Daily Post Staff Writer

A Los Altos official says that a new kind of tax could be coming to cities soon – a tax on streaming video ser-vices, like Netflix and Hulu.

The city of Santa Barbara has spearheaded the tax as part of its 5.75% tax on utilities, including cable TV.

A California Court of Appeal upheld the tax for streaming services in December, throwing out a legal challenge by Disney.

Los Altos Vice Mayor Larry Lang said he learned about the streaming tax at a League of California Cities conference in Anaheim from Sept. 23 to 25.

“The expert giving the briefing said,’Santa Barbara has broken the pinata, you should see if you can get some of that candy”” Lang said at a council meeting on Tuesday.

Under consideration

Lang said he spoke with City Manager Gabriel Engeland, and the city is exploring a similar tax.

Los Altos currently has a 3.2% tax on cable TV bills.

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