CULVER CITY, Calif. (KGO) -- Netflix and other streaming video services could end up being taxed, but a state assemblyman has a bill that will stop that.
The bill would prevent utility taxes on streaming media companies for the next five years.
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Many cities are losing significant utility tax revenue as consumers disconnect from cable and satellite services in favor of online options.
The bill's author says streaming media is a developing industry and there are too many variables to implement a fair tax.
"We are comfortable with the idea of taxation, but the devil's in the details," said Assemblymember Sebastian Ridley-Thomas, D-Culver City. "And this measure will give us a bit of time to work with the local government, consumers, industry and state tax administrators to figure out where the sweet spot may be.
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He says a better option may be a sales tax or special fee on subscription services.
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