Chicago Netflix Subscribers to Pay More - 9% Streaming Tax
Chicago Netflix Subscribers to Pay More
by THR staff
7/2/2015 2:37pm PDT
The Windy City is enacting a 9 percent tax on streaming
services.
People in the Windy City soon will be paying a little
more to stream their favorite movies, TV shows and music.
Chicago has enacted a "cloud tax," which will
tack on 9 percent to streaming services like Netflix and Spotify, the Chicago
Sun-Times reported.
It's an expansion of the city's amusement tax, which
taxes things like movies and tickets to sporting events. The streaming provision
of the amusement tax takes effect in September, and the city estimates it will
bring in $12 million annually.
The Sun-Times reported that Chicago is the first major
city to enact a tax on digital services. Other cities, such as New York,
already tax entertainment and information services.
“In an environment in which technologies and emerging
industries evolve quickly, the city periodically issues rulings that clarify
the application of existing laws to these technologies and industries,” said
mayoral spokeswoman Elizabeth Langsdorf in a statement.
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