While everyone and their mom was logged into Netflix this weekend for the premiere of Stranger Things Season 2, the streaming service was butting heads with the City of Loveland over money -- but why?

US Online Streaming Giant Netflix : Illustration
Pascal Le Segretain/Getty Images

Well, I'm not entirely sure, because I don't understand the legal jargon here, but I'll give it my best go.

According to Avalara Tax Rates, this started a few years ago when Loveland originally went after Netflix, stating that 'The state does not tax the streaming services provided by Netflix. However... a Loveland Revenue Division audit found Netflix liable for... sales tax... for the 'sales/rental of tangible personal property.'' [see more] This came out to a little over $116,000 in owed taxes to the city.

OK, I think I followed that. Loveland collects a 3% local sales tax, and, considering the streaming service has put out just about every local video rental store around, I guess I could see why they were perusing taxes...

So now, Netflix is filing a counter suit to appeal the 'taxes levied on them by the Loveland Department of Revenue,' reports Courthouse News.

Basically, Loveland was asking for over $100,000 in owed taxes from Netflix, which the service claimed was a violation of federal law, and they're not wanting to pay up, so now the financial feud is getting heated.

The Coloradoan says that Loveland has since backed down (likely because Netflix is... Netflix), but is asking for the State of Colorado to step in and decide how streaming services will be taxed in the future.

More From 94.3 The X