Why Netflix users in Florida will have to pay more for the service

Netflix users in Florida will be in for a surprise on their monthly bills: a new charge called “state services tax”effective February 15, 2024. This addition corresponds to Florida's Communication Services Tax (CST), a measure that also affects other services such as cable, satellite television, streaming music and mobile telephony .

This state tax, which amounts to 7.44 percent, It is made up of 4.92 percent corresponding to the CST and an additional 2.52 percent of taxes on gross receipts. Netflix, the leading streaming platform, has not provided a clear explanation as to why this tax is being implemented at this specific time. However, it coincides with a recent increase in subscription prices announced in autumn 2023.

The news was reported by an affiliate of CBS News in Tampa Bay and confirmed by a Netflix spokesperson. According to the information provided, This tax will be invoiced separately as a different item on the monthly bill of the affected users.. So far, it has not been specified whether this measure will also affect users in other states, in addition to Florida.

What is the CST that will be charged in Florida?

Florida's CST, which Netflix users are now subject to, It is a tax that seeks to tax communication services within the state. It is applicable not only to streaming services, but also to a variety of communication services, including cable television, satellite television, streaming music and mobile telephony.

The incorporation of this tax has generated mixed reactions among Netflix subscribers in Florida. According to CBS News, some express their discontent, arguing that they already paid enough for the service and that this new charge represents an additional increase in your monthly expenses. Others, however, suggest that the tax is the result of state fiscal policies and that, although it is not well received, it is part of the tax regulations that they must face.

The fact that Netflix has decided to break down this tax as a specific item on the monthly bill has also sparked debates. Other taxes, such as federal taxes, are not presented the same way. Netflix has not provided a detailed explanation. Meanwhile, subscribers in Florida will see this new charge reflected on their bills starting in mid-February.