Netflix slaps Florida users with a new tax starting February 15, 2024. Blame the Florida Communications Services Tax. It hits cable, satellite, streaming, and mobile services with local and state taxes.
Tax Rates
The tax rate hits 7.44%. That’s 4.92% state tax plus 2.52% gross receipts tax. Florida’s targeting digital streams, just like old-school comms.
Netflix Compliance
Netflix charges extra tax to follow the local laws. They must show state taxes on bills. This state-mandated tax can’t be dodged or eaten by Netflix; it’s passed to consumers, as Florida’s rules demand.
Tax Structure
Florida’s tax makes digital services pay up, like traditional ones. The tax splits into 0.15% and 2.37% rates, showing Florida’s tiered tax approach. Local tax rates vary, thus, complicating the bill for services in the state.
Digital Economy
The reason Florida taxes digital streams is to catch up with the digital economy. Therefore, the state slaps a Communications Services Tax on streaming. Video and audio streams get hit. It’s a move to update tax laws for future tech advances. New services? They’ll get taxed too. The CST, once for phones, now will be able to target all digital streaming platforms that consumers use. For them, it means pricier subscriptions, thanks to this state law.