Photo by PoPville flickr user brunofish
Ever since I’ve had Netflix I’ve been charged a 10 percent sales tax. Every month for maybe 3-4 years I’ve been charged $7.99 (+$0.80 tax). I had thought that the only 10 percent tax in the city was for restaurants and I didn’t think that should include Netflix, so I reached out to D.C. government to see what the correct tax should be. They confirmed it should be 5.75 percent.
As per the D.C., code 475.1 ( information services), gross receipts from the sale or charges for information services shall be subject to the sales and use tax at the rate of 5.75%.
I have reached out to Netflix for a refund of the small amount of money they’ve been overcharging me, but so far I haven’t heard back from them (and I was just charged my next month’s bill with the same incorrect tax). What interests me, though, is if most D.C. residents are getting charged the incorrect tax. If that’s so, who pockets the extra cash? It’s a lot of money if it’s everyone with a D.C. address that subscribes to Netflix. Just wonder if I’m the only one and if I’m not who is making off with the extra money.”