Indiana Court Blocks Cities From Taxing Streaming Services
State court sides with streaming platforms.
June 3, 2025 – Indiana cities are prohibited from charging Netflix, Disney, Hulu, and other streaming companies the same fees as they do cable TV operators, the Court of Appeals of Indiana ruled. The decision affirmed a 2023 State Law that exempted streaming companies from city taxes.
In August 2020, four Indiana cities – including Indianapolis – sued Netflix, Disney+, Hulu, Dish Network, and other streaming companies. The lawsuit was based on the argument that Indiana’s Video Service Franchises Act holds that streaming companies and cable networks are subjected to the same fees as they both transmit video through the internet.
Following this lawsuit, the Indiana General Assembly passed Public Law 236-2023, a retroactive amendment that excluded streaming services from the VSF Act. The Amendment clearly defined “video service” to “not include video programming accessed via a service that enables users to access content, information, electronic mail, or other services offered over the Internet, including digital audiovisual works.”
On Friday, the court declared Public Law 236-2023 and the Amendment to be constitutionally sound and further affirmed that streaming companies are exempt from the VSF Act.
