Louisiana Residents Could Soon See New Taxes on Netflix, Disney+, and Other Streaming Services

Louisiana residents might soon find new charges on their monthly streaming bills, as a proposed 4.5% tax on digital services, including Netflix, Disney+, and other streaming platforms, progresses through the state legislature. Approved by a House committee on Monday (Nov. 11), this tax proposal is part of a broader tax reform package supported by Governor Jeff Landry and is now on its way to the full House for debate.

The proposed tax aims to generate revenue for the state while aligning Louisiana with 44 other states that already tax digital services. According to Rep. Mandie Landry (D-New Orleans), these services are “really luxury items,” likening them to cable TV, which residents already pay taxes on. She added, “People may choose not to get cable, those are things we’re not bothered paying taxes on.”

During the committee meeting, legislators raised questions about the scope of the tax. One pressing concern: whether essential services, like telehealth, would be affected. State officials reassured lawmakers that telehealth services would remain exempt from this tax, clarifying that it targets entertainment-based digital purchases, including movies, live events, music, and ebooks.

The revenue from the new streaming tax is expected to help offset the cost of a proposed tax restructuring that includes a flat 3% personal income tax and a 3.5% corporate tax rate. These changes would replace the current sliding tax scales, with state officials estimating that the new tax on digital services could generate between $40 million and $100 million annually.

Despite the projected revenue boost, some lawmakers remain skeptical about the impact on Louisiana residents. Rep. Mandie Landry cautioned, “It’s propaganda to tell people taxes are going down because your income tax may go down but corporate taxes are going down by a lot, and we’re raising taxes in other places to do this.”

Supporters of the tax reform package, however, argue that the overhaul could improve Louisiana's business climate, potentially making it more competitive with neighboring states. For now, Louisiana residents will have to keep an eye on the state legislature, as these bills move forward in the ongoing debate on how to balance the state's budget.

See the full story here via FOX 8.