Netflix, Hulu argue they aren’t ‘video service providers’ as defined by Ohio before Ohio Supreme Court in case brought by Maple Heights

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For those who didn’t read the article, the law in question was passed in 2007 because **cable** video service providers wanted to lay and maintain cable in public throughways to distribute their video services. Various cities all charged different taxes to perform the digging and installation, and this was a negotiated result w/ the state legislature, cities, and cable providers to set a single tax rate of 5%. Now, municipalities want to charge streaming services the same 5% even though they don’t dig and install cables underground in public throughways to deliver their product. They want to do this because the statute says they can tax “video service providers”, even though the statute is written clearly to regulate cable providers. The cities want to double-dip, collecting from the cable networks and ISPs, *and* from video-based streaming services. The State AG has joined as an amicus *in support of the streaming companies* stating that the law doesn’t allow cities to tax internet streaming video services, only those that dig and lay cables in public lands, which the city owns and as such the city should be able to tax.

bobartig

Regulators: Netflix and Hulu, do you provide any services other than video? Netflix: We have games! Regulators: Do you have any other services that are good? Netflix: Oh, in that case no, just videos.

mook_misanthrope

Please read the article. While the headline is “correct” it’s definitely not an egregious position. State’s stance is pretty bad on this imo Edit: states position is good. Locality position is bad

lennyMoo-

Ok …I’ll take the subscription option where I only pay for the video service please.

TerryRedditToday

I agree with the State AG. Individual cities being able to tax websites that have no physical presence in that city is just plain stupid. They are losing revenue from cable fees because people are getting rid of cable, that’s just too bad, things change. It’s not the streaming platforms problem. The city should have no claim.

matts1