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There are a lot of states who want to follow the lead of Maryland. At the end of the day, states tend to bounce off one another when they create a policy, so this is very interesting to say the least.
If other states happen to follow, then so be it. With this type of thing, you usually have a single state who will go through court and then when it gets the go-ahead, the other states will then start doing it as well.
Even though it is set to start in the next month, it’s safe to say that the law is now the target of a lawsuit from a lot of tech companies. Internet companies are saying that the law is going to violate the Internet Tax Freedom Act. This is a 1998 Federal Tax act and some are concerned that it is going to show discriminatory tax on things such as electronic e-commerce. The law is going to have big implications for any state-based efforts and some say that it is going to raise taxes as well.
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Netflix, Hulu Can t Hide Behind Internet Tax Freedom Act in Missouri Fee Fight
Courtesy of networks (Logos)
As streamers face an escalating battle with American cities over local utility fees, one judge issues a first-of-its-kind ruling as another judge hears First Amendment arguments over the digital transmission of Queen s Gambit and Cobra Kai.
If 2020 became the year that American cities, burdened by a health pandemic and desperate to find new revenue, declared war on Netflix and other streamers, the year ended with a potentially important court ruling that suggests that the fight won t be an easy one for streaming services looking to avoid local taxation. In two separate orders, a Missouri judge ruled that townships in her state had alleged facts sufficient to support allegations that Netflix, Hulu and DirecTV were covered by Missouri s Video Services Providers Act and that these defendants couldn t avoid utility fees by holding up the Internet Tax Freedom Act.