Netflix menu screen – Courtesy: Shutterstock – Image by Vantage_DS
Beginning in mid-February, Netflix subscribers in Florida will notice a new tax on their monthly bills.
WTSP, a CBS News station in Tampa Bay, reports that this week, the massive streaming service sent consumers an email informing them of an extra “state service tax.” According to WTSP, the tax, which is Florida’s communication services tax (CST), is levied on sales of cable and satellite television, mobile services, streaming music and video, and similar products.
“We hope you’re enjoying everything Netflix has to offer. Starting on February 15, 2024, additional state services tax will be applied to your monthly subscription. You can read more about how taxes affect your Netflix membership here,” the email reportedly read.
In cases when they “may not absorb or relieve the customer of all or any part of the communications services tax,” businesses are required by law to itemize and separately include state taxes on their customers’ bills, according to the Florida Department of Revenue.
According to the government, the combined rate for Florida’s CST is 7.44 percent, which consists of 2.52 percent gross receipts tax and 4.92 percent CST.
“We’ve notified our members in Florida that they will start to see state services tax applied to their monthly bill beginning February 15,” a Netflix spokesperson told WTSP. “Netflix subscriptions in Florida are subject to both local and state tax as part of the Florida Communications Services Tax.”
The streaming behemoth did not, however, explain the charge’s current implementation.
The new levy was imposed by Netflix after it revealed in the fall that it would be increasing the cost of its most costly subscription tier by 10 percent to $23/month and upping the price of its lowest ad-free tier to $12/month. The least expensive subscription package is currently $7/month with commercials. The prices indicated above do not account for sales tax.
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Born and raised in South Florida, Krystal is a recent graduate from the University of Miami with professional writing experience at the collegiate and national news outlet levels. She’s a foodie who loves all things travel, the beach, & visiting new places throughout Florida.