Netflix Price Increase

Do you pay taxes on cable and phone service? Both are "digital goods"

Those services need your physical address. Netflix does not. Use your head. If nothing has to be shipped to you, why would you use a billing address that's not in Alaska, Delaware, Montana, Oregon, or New Hampshire? 🤫
 
There are less than 5 states that charge tax on digital services

False.

Best to just have your digital avatar live in one of the five completely sales tax free states when buying anything that doesn't have to be shipped to your physical location. 🤷‍♀️
 
False.

Best to just have your digital avatar live in one of the five completely sales tax free states when buying anything that doesn't have to be shipped to your physical location. 🤷‍♀️
Your links are incorrect, for example-

Below is a list of U.S. states that generally exempt digital goods:

  • Alaska
  • California
  • Delaware
  • Florida
That is where I live, here is the correct information-

Mobile communications and video services are taxed at the total Florida rate of 7.44% plus the applicable local tax rate. There is no residential exemption.

What is Taxable?

Communications services include telecommunications, video, direct-to-home satellite, and related services.

This definition includes voice, data, audio, video, or any other information or signals transmitted by any medium.

Examples of services subject to the tax include, but are not limited to:

Video services (for example, television programming), whether provided by a cable, telephone, or other communications services provider

Video streaming

Direct-to-home satellite


 
Your links are incorrect, for example-

Below is a list of U.S. states that generally exempt digital goods:

  • Alaska
  • California
  • Delaware
  • Florida
That is where I live, here is the correct information-

Mobile communications and video services are taxed at the total Florida rate of 7.44% plus the applicable local tax rate. There is no residential exemption.

What is Taxable?

Communications services include telecommunications, video, direct-to-home satellite, and related services.

This definition includes voice, data, audio, video, or any other information or signals transmitted by any medium.

Examples of services subject to the tax include, but are not limited to:

Video services (for example, television programming), whether provided by a cable, telephone, or other communications services provider


Video streaming

Direct-to-home satellite

My understanding is that she was talking about taxing Netflix
 
Those services need your physical address. Netflix does not. Use your head. If nothing has to be shipped to you, why would you use a billing address that's not in Alaska, Delaware, Montana, Oregon, or New Hampshire? 🤫
Does Netflix not validate the billing zip code on the credit card you set up for payments? I believe most online payment mechanisms do this as a way to combat fraud.
 
You can also use PayPal to pay monthly. Then they (Netflix) dont have your credit card info :)
I pay by Gift Cards that I purchase with my Credit Card points, but they know where I am.

When I activated my Apple TV, had a email from them, that said-new device authorization in Kissimmee, Florida.
 
When I activated my Apple TV, had a email from them, that said-new device authorization in Kissimmee, Florida.

They track that location by your IP address and you receive that notification any time you activate from a different location. Has nothing to do with payment or determination of taxes.
 
You can also use PayPal to pay monthly. Then they (Netflix) dont have your credit card info :)
Paypal records your billing info and charges tax in appropriate regions; that's part of the service they are required to perform as a payment processor
I pay by Gift Cards that I purchase with my Credit Card points, but they know where I am.
now, this is a stumper! i guess this is the foolproof way to hide your billing location!
 
I don't think many services really care and those that do (YTTV has had me verify my location using my phone, iirc) offer services sensitive to your location. Probably related to sports and local channel availability, or in response to accessing services from multiple locations and efforts to reduce account sharing.
 
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I don't have Netflix but curious how intrusive the ads are.

They don't bother me at all. They appear far less often than, say, a TV show OTA or on a streaming service. Sometimes it's just one 15-second ad at the beginning and that's it. I've never found myself thinking, "Damn, these ads are so annoying I need to buy the more expensive plan."
 
On the ad-supported tier there is a padlock on certain content and if you try to play it says something about "licensing agreements". On Christmas say I subscribed to the ad supported plan just for the 2 NFL games that day and was planning on catching up on some other stuff for the month I had it but some of the stuff I wanted to see was not available to me on the ad supported plan.

Here is the most recent list:

All 155 Movies and Series Blocked in The Advertising Tier of Netflix in January 2025
 
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