Ten tech companies, including some of the biggest names in Silicon Valley, have registered to lobby federal lawmakers on “issues related to digital services taxes.”

Facebook Inc., Google Inc., Microsoft Corp., Netflix Inc., Airbnb Inc., Amazon.com Inc., Salesforce.com Inc., Spotify AB, Twitter Inc. and RELX Group filed separately May 3 to report that they had retained Washington-based Baker McKenzie partner Joshua Odintz, a former tax counsel on the U.S. Senate Finance Committee, to lobby for them.

The registration filings do not identify any specific legislation the companies might be targeting, and Odintz did not return a message seeking more information. But the filings became effective six days after a bipartisan group of lawmakers introduced bills in the House and the Senate that would make it tougher for states and local governments to tax digital services.

The Digital Goods and Services Tax Fairness Act—the bill's name in both houses—would bar multiple taxes from being levied on the same audio, video or digital programming service. It would also prohibit local governments from taxing streamed or downloaded products at higher rates than “similar” tangible property. For instance, a city couldn't charge higher taxes on downloaded software or MP3s than it would for an in-store purchase of a tax-preparation or music CD.

“The technological developments of the 21st century are influencing consumers to spend more of their money on digital goods and services, and they shouldn't be punished for making this choice,” Congressman John Ratcliffe, R-Texas, said in a prepared statement. “In order to keep our markets free and our economy growing, we must ensure that we prevent hard-working Americans from being double-taxed for non-tangible purchases.”

The issue of how, or if, to tax digital services is one that has percolated through statehouses and international venues as streaming products, such as Netflix, grow in popularity. Several European nations are considering digital service taxes over the opposition of provider companies and, in the case of France, the U.S. State Department.

In 2017, the California Legislature considered a bill that would have blocked cities from taxing streaming video services, including Netflix and Hulu. A growing number of local agencies have weighed extending the levies as consumers increasingly drop cable—a service that is subject to utility tax schemes—for untaxed online video streaming services.

The state legislation ultimately died amid opposition from local government agencies and the cable industry.

Odintz served as tax counsel to the Democrat-controlled Senate Finance Committee from 2007 to 2009. He has lobbied on tax issues for Baker McKenzie clients including CVS Health, Western Union and Takeda Pharmaceuticals America, and he has spoken at American Bar Association taxation meetings.

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