ST. PETERSBURG, Fla. — Netflix customers in Florida will soon see a new charge on their monthly statements starting later in February.
The streaming giant began emailing users this week alerting them to an additional "state services tax." This tax, specifically Florida's communication services tax, applies to sales including cable and satellite TV, video and music streaming, mobile services and the like.
Emails to customers read, in part: "We hope you’re enjoying everything Netflix has to offer. Starting on February 15, 2024, additional state services tax will be applied to your monthly subscription. You can read more about how taxes affect your Netflix membership here."
Companies are expected to itemize and separately list state taxes on the customer's bill, according to the Florida Department of Revenue. They "may not absorb or relieve the customer of all or any part of the communications services tax."
The total rate for the Florida communications services tax (CST) is 7.44 percent, according to the agency. It's comprised of 4.92 percent CST plus an additional 2.52 percent gross receipts taxes.
A Netflix spokesperson told 10 Tampa Bay: "We’ve notified our members in Florida that they will start to see state services tax applied to their monthly bill beginning February 15. Netflix subscriptions in Florida are subject to both local and state tax as part of the Florida Communications Services Tax."
The company did not explain why the charge is going into effect now.
Last fall, Netflix announced it was raising the price for its most expensive streaming service by $2 to $23 per month in the U.S. — a 10% increase — and its lowest-priced, ad-free streaming plan to $12 — another $2 bump. Its cheapest offering starts at about $7 a month with ads.
The advertised prices do not include sales tax.