ATLANTA – The proposal that would have allowed the state to tax Netflix and other streaming services has been removed by Georgia lawmakers.
In consonance with a poll from the Atlanta Journal Constitution, sixty five percent of Georgia residents are not fond of the idea of taxing the internet to help fund internet expansion in the rural parts of the state.
One of Governor Kemp’s priorities is to expand the internet, but without the, “Netflix tax,” there will be no additional funds to do this.
Nevertheless, the members of the state House will be moving forward to create a four percent tax on other online products; e-books, iTunes music and video games. The four percent tax will be included with House Bill 428, which will also eliminate fees and taxes on existing phone and cable services. It would eliminate a five percent franchise fee on cable television revenue, a three percent franchise fee on landline phones, and state and local sales taxes on phones. The bill isn’t a tax increase and won’t generate additional funds, says legislators.
The lawmakers listened to its customers whom, “didn’t like what has become known as the Netflix tax, so we took that off,” said Werkheiser, a Republican from Glennville.
This means that there will be no funding to build internet lines to Georgia households that lack internet speeds of at least twenty five megabits per second. This will affect sixteen percent of Georgia households.
The Netflix tax would have accumulated about 48 million dollars in 2021 and up to $310 million dollars in 2024, but as of right now, if money is needed for the internet expansion, the money would have to come from the state’s general treasury or federal grants.
Kemp stated that his, “first inclination is not to look at tax increases to pay for this,” and that, “if we’re going to have some sort of offset, I’d be open to looking at that. I don’t know that raising taxes is the answer for me.”
Those who would benefit from the HB 428 bill, lobbyists for AT&T and the cable industry, crowded a House Ways and Means subcommittee meeting on this past Monday to show their support.
