The Ohio Supreme Court sided with Netflix and Hulu on Wednesday, ruling the streaming companies don’t owe taxes typically paid by cable companies to local governments.
COLUMBUS – on behalf of 2,000 communities seeking to put the companies on the hook for what could be hundreds of millions in tax revenue. In the spring, U.S. District Judge James Gwin asked the Ohio Supreme Court to settle two key questions: Are the companies “video service providers,” who must pay franchise fees? And can Maple Heights bring its lawsuit in the first place?
The law requires companies relying on wires and cables through public rights of way to pay the franchise fee – not streamers sending content through the internet, the court said.
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