NEW ORLEANS (WVUE) – ​New taxes on digital services like Netflix, Disney+ and gaming are progressing through the Louisiana Legislature, were approved by a committee Monday (Nov. 11) morning and are now headed to the full House.

Part of a broader tax reform agenda championed by Gov. Jeff Landry, the 4.5% tax on streaming services aims to generate revenue for the state, with supporters saying it will bring Louisiana in line with 44 other states that already tax digital services.

“Streaming services are truly luxury items. People can choose not to have cable, those are things we don’t mind paying taxes on,” said Rep. Mandie Landry (D-New Orleans).

House committee members peppered the Landry administration with questions about the scope of the new tax and whether essential services like telehealth would be affected.

“I need to know if this is an unintended consequence.” We need to know,” said Rep. Michael Echols (R-Monroe).

State officials confirmed that telehealth services would be exempt, although the new tax would apply to digital films, videos, live events, music and e-books.

LEGISLATIVE SESSION

The new tax aims to balance the financial impact of a proposed flat personal income tax of 3% and a corporate tax of 3.5%, both of which would replace a higher sliding scale currently in place. place.

“My department estimates $100 million… but the Legislative Finance Office estimated it was about $40 million. It would be fair for the amount to be somewhere between those numbers,” said Richard Nelson, who heads the Los Angeles Department of Revenue.

Despite the expected increase in state revenue, some lawmakers remain skeptical.

“I think it’s propaganda to tell people that taxes are going down because your income tax may go down, but corporate taxes are going down significantly and we’re raising taxes elsewhere to do that,” said Rep. Mandie Landry (D-M). New Orleans).

If passed, Nelson says the tax reform bill could improve Louisiana’s position as a business-friendly state. The sales and income tax bills now go to the full House for debate.

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