But amid tight budgets, the prospect of a new sales tax stream has encouraged lawmakers to lift bans in many places.
The police headquarters fund, a countywide tax stream dedicated to police services, ran a $216 million deficit last year, which was closed with a loan from general funds.
"I think they figure if they become part of the tax stream, the less vulnerable they will be to some shift in mores," he said.
The current proposal includes a tax stream for the next five years, but John Tavaglione, the president of the California State Association of Counties, said many worry that the money is not guaranteed in the long term.
California Democratic Lieutenant Governor Gavin Newsom joined Cory Gardner, a Republican senator from Colorado, in condemning Sessions's move, saying that it infringes on states' rights and jeopardizes a thriving and lucrative industry and a valuable new tax stream.
"When I looked at this new revenue tax stream, I think we have to convince the public that we are using it wisely and strategically, and I think we've failed in that regard as a city," he said.
In March, its Department of Revenue announced it would start taxing streaming services like Netflix and Spotify the same way it taxes rental stores that deal in physical discs.
In Louisiana, administrators from Jefferson Parish recently lost a lawsuit over whether they could tax streaming video-on-demand and pay-per-view services.
Local governments, which have already suffered their own losses of tax revenues, will probably lose far more as a result of the deal when the state begins dipping into tax streams on which they depend, including gasoline taxes.
Garrett's department estimates the state could get $5-10 5-10 million dollarsaxing streaming services — far from enough to close the estimated $700 million bydgetaxingtfall, but not a paltry streamingr.
