Is there a federal lawsuit or question at play here? IANAL, but interstate commerce comes to mind. What punitive measures or recourse does a state have on an out of state vendor like Netflix?
In Quill Corp. v. North Dakota, the Supreme Court very unambiguously ruled that a state cannot force out-of-state companies that have no physical presence in that state to collect sales tax. If Netflix has agreed to collect sales tax in Pennsylvania, I think they're either doing it voluntarily for political reasons or because they have some physical presence in Pennsylvania for some reason.
Surely there must be some Netflix equipment in a datacenter in Pennsylvania.
I wonder if renting servers in a state counts as physical presence. What about using a CDN that has a PoP in that state?
They have a DVD center in Pheonixville, just west of Philadelphia.
But Nexflix were split into a DVD and a streaming company some time ago, so that may be for a different company.
Wasn't that the ill-advised move five or so years ago that tanked Netflix's stock, causing a quick reversal?