Pasadena, California Imposes Heavy Tax on Video Streaming Services

In September, the city of Pasadena, CA imposed a 9.4% tax on video streaming services, such as Netflix, HBO Go, and Hulu. The tax will go into effect on January 1, 2017. As more and more consumers “cut the cord,” cites throughout the country are turning to video streaming services to make up for the loss in tax revenue that previously was generated from pay-TV services. State and local governments instead should work to reduce taxes on all video services, allowing consumers to access as much content as possible.