Disney, Hulu Owe Santa Barbara Video Tax, California Judges Rule

Three Walt Disney Co. streaming platforms are subject to Santa Barbara’s video users’ tax because the levy applies regardless of how the content reaches viewers, a California appeals court affirmed Wednesday.

The decision marks a departure from more than a dozen rulings under various state laws across the country that streaming services aren’t subject to the same fees that cable companies pay to run wires in public rights of way.

It also marks the first time that a California appeals court has considered whether applying such taxes to streaming services violates the federal Internet Tax Freedom Act by taxing video ...