Netflix is adding an additional tax to your monthly bill, but only if you live in Florida
Your Netflix bill is going up soon – and it's not because the streaming platform is adding new shows, movies or plans.
Netflix emailed its subscribers in Florida this week to notify them of a change coming to their bill in the form of an "additional state services tax" that will be applied to their monthly subscription. That tax is called the communications services tax, which is set by the state at 5.07% and will be added to your Netflix bill starting Feb. 15.
"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 spokesperson from Netflix told FOX 35. "Netflix subscriptions in Florida are subject to both local and state tax as part of the Florida Communications Services Tax."
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It's not a new tax, as other streaming platforms like Hulu and Disney+ already charge it. FOX 35 asked Netflix why it's adding the tax this month despite having been introduced in 2001, but they said they have nothing further to add beyond the original statement they provided.
Screenshot of email from Netflix to subscribers on Feb. 1, 2024.
The tax is imposed on each sale of communications services in Florida, including but not limited to cable and satellite TV, video and music streaming and mobile communications.
According to the Florida Department of Revenue, dealers – in this case, Netflix or other streaming platforms – collect the tax from customers and report and pay the tax to the state.
The communications services tax is made up of two parts: the Florida communications services tax and the local communications services tax. The total communications services tax rate is the state rate, gross receipts rates and local tax rate combined.
A spokesperson for the Florida Department of Revenue broke down the numbers:
"The total tax rate for the Florida communications services tax is 7.44% (4.92% state tax rate + 2.52% gross receipts taxes (0.15% + 2.37%)). Businesses may bill and collect the 4.92% state tax rate along with 0.15% gross receipts tax (5.07% total) as "state tax," according to the state.
Each local taxing jurisdiction – like municipalities and counties, for example – has a specific local tax rate. You can see a list of current local rates here.
Screenshot of Florida Department of Revenue's website
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"Dealers must add the communications services tax to the price of the communications services sold, and may not absorb or relieve the customer of all or any part of the communications services tax," according to the Department of Revenue's website.
You'll be able to see the changes on your Netflix invoice after Feb. 15. Under state law, streaming platforms "must itemize and separately state taxes on the customer's bill," according to the Department of Revenue.
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The addition of the communications services tax comes after Netflix said it would increase prices for subscribers, and even crack down on password sharing between households.
"We seek to provide a range of prices and plans to meet a wide range of needs, including highly competitive starting prices," Netflix said in a quarterly letter to shareholders last month. "As we invest in and improve Netflix, we'll occasionally ask our members to pay a little extra to reflect those improvements, which in turn helps drive the positive flywheel of additional investment to further improve and grow our service."
The streaming platform recently raised its prices:
- Basic Plan: Increased by $2 to $11.99 a month (no longer available to new subscribers)
- Premium Plan: Increased by $3 to $22.99 a month
Netflix's Standard with Ads plan remained the same at $6.99 a month, and so did the Standard Ad-Free plan at $15.49 a month.