Louisiana House Committee Advances New 4.5% Tax on Streaming Services Amid Concerns Over Digital Access
NEW ORLEANS — Louisiana is moving closer to adding a 4.5% tax on digital streaming services like Netflix and Disney+, following a vote Monday by a House committee to advance the proposal to the full House. The measure, part of Governor Jeff Landry’s extensive tax reform plan, seeks to align Louisiana with 44 other states already taxing digital services. Proponents highlight the potential to boost state revenue, though concerns linger over digital access and affordability.
Rep. Mandie Landry (D-New Orleans) emphasized the tax's focus on non-essential services, describing streaming platforms as “luxury items” for most residents. “People may choose not to get cable; these are things we’re not accustomed to paying taxes on,” she said, defending the new tax as a reasonable revenue source.
However, some lawmakers questioned the tax's broader implications, especially regarding essential digital services. Rep. Michael Echols (R-Monroe) raised concerns about unintended impacts on services like telehealth, which many residents now rely on.
“I need to know if it’s an unintended consequence. We need to know,” Echols stated.
State officials reassured legislators that telehealth services would be excluded under the proposed tax, which would specifically target digital entertainment like movies, live events, ebooks, music, and video streaming.
With the committee’s approval, the proposed tax is now slated for a vote by the full House.
