The city of Creve Coeur in St. Louis County is suing online video streaming services Netflix and Hulu for not paying the same fees as cable providers. City ordinances require video service providers to pay a 5 percent tax on gross revenues each month.
The city is seeking class-action status for at least 40 Missouri municipalities. The lawsuit, filed July 19 in St. Louis County Circuit Court, calls on companies to pay the tax going forward, and to compensate the municipalities for five years of unpaid fees.
It’s another example of efforts across the country by cities and states to tap into the growing internet economy for revenue.
“Despite gaining customers from other providers, defendants have not been paying video-service-provider fees, which deprives Missouri municipalities of much-needed revenue,” the lawsuit says.
Read more: St. Louis Post Dispatch