Jessica Mathews / news@whmi.com


An area lawmaker’s bill has cleared the House that would ban local taxes on streaming services.

The House passed State Representative Mike Harris’ bill to prevent local governments from imposing taxes on streaming services like Netflix, Disney+ and Peacock – “ensuring costs remain as low as possible for families and protecting residents from unfair fees”.

A release states that local governments currently tax cable companies who use rights-of-way areas to install physical infrastructure to extend cable services to the home. The cable companies are then allowed to directly charge customers for the tax imposed by the local municipality.

Harris alleges that “As people turn away from traditional cable in favor of online streaming platforms, municipalities have begun exploring a convoluted way to tax streaming service customers, even though there is no physical infrastructure required to utilize the services”.

The Waterford Republican said local governments imposing this sort of tax on streaming services would lead to higher costs for everyday people. He said “many locals are embracing a backwards strategy of imposing cable-style taxes on streaming services, even though the streaming platforms require no physical infrastructure similar to cable companies”.

Some communities - as well as the Michigan Townships Association and Michigan Municipal League - oppose the legislation, arguing it creates an uneven playing field.

The Mayor of Warren issued a letter of opposition, link provided bottom. It states in part:

“The result of HB 5123 will likely be increased profits for certain providers at the detriment of other providers and at the cost of taxpayers. НВ 5123 is nothing short of corporate welfare for wealthy streaming and satellite providers. In its current form, PA 480 is fair and works as the Legislature intended it to. I respectfully ask this committee to say "No thank you" to the streaming and satellite industry's self-serving invitation to disrupt PA 480”.

The legislation passed the House and moved to the state Senate. Records show local lawmakers Ann Bollin, Jennifer Conlin, Mike Mueller, and Jason Woolford all voted in support.

Various testimony was heard during a May House Government Operations Committee meeting. That link is provided top.