Chicago to Tax Streaming Content on Spotify, Netflix + More
Bad news for Chicago users of Spotify, Apple Music, Tidal, Netflix and other streaming services: Beginning in September, residents of Chicago will be subject to a 9 percent "cloud tax" – an extension of the amusement tax which taxes entertainment industries.
The city voted on the expansion on Wednesday (July 1) and expects the tax to bring in $12 million every year. Chicago mayoral spokeswoman Elizabeth Langsdorf said:
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. These two rulings are consistent with the city’s current tax laws and are not an expansion of the laws. These ensure that city taxation is uniformly and fairly applied and that businesses are given clear guidance on the applicability of the city’s tax laws to their operations, and they clarify that the amusement tax and personal property lease tax apply to digital services.