Why do city officials raise taxes? The answer, in some cases, is as simple as “because they can,” or at least they think they can.
In recent weeks, a number of California cities announced plans to extend their utility user tax to media streaming subscriptions and online rentals. So, if you subscribe to Netflix, Hulu, Amazon Prime, HBO Go, Sling TV, etc., your bill could soon increase by the amount of your city’s tax. Utility user taxes average about 6% but are as high as 11% in some cities.
If you don’t remember voting to tax Internet services, you’re right. Then why do these cities think they can get around Prop 218, the Right to Vote on Taxes Act?
To read the entire column click here http://www.hjta.org/ california-commentary/will- cities-increase-the-cost-of- internet-services/