Measure K1 to Tax “Netflix and Chill”

Alameda's Measure K1 expands the utility tax to cover Netflix.

Alameda’s Measure K1 expands the utility tax to cover Netflix.

In an obscene tax grab, the City of Alameda, with Measure K1, is expanding its so-called “utility” tax to cover popular services that are hardly “utilities” – streaming video services like Netflix and Amazon Prime.

The language in the measure is clear – the tax is expanded to cover streaming Internet video service suppliers such as Netflix and Amazon.

The measure explains [emphasis added]:

A “video service supplier” includes, but is not limited to, multichannel video programming distributors (as defined in 47 U.S.C.A. Section 522(13)); open video systems (OVS) suppliers; and suppliers of cable television; master antenna television; satellite master antenna television; multichannel multipoint distribution servic es (MMDS); video services using internet protocol [e.g., IP-TV, IP-Video and over-the-top TV (OTT), which provide, among other things, broadcasting and video on demand], direct broadcast satellite to the extent federal law permits taxation of its video services, now or in the future; and other suppliers of video services (including two-way communications), whatever their technology.

Your “Netflix and chill” is about to get more expensive, unless you vote No on K1.

But don’t just take our word for it. Ask the executive director of the California Internet Association.

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