Chicago to Apply 9% 'Netflix Tax' Netflix service in Chicago is about to get notably more expensive. On the hunt for new revenue, Chicago's Department of Finance is applying two new rules that would impact companies like Netflix and Spotify. One covers "electronically delivered amusements" and another covers "nonpossessory computer leases"; together they form a unique and troubling new attempt by cities to tax any city resident that interacts with "the cloud. According to the Chicago Tribune, streaming service providers need to start collecting the tax starting September 1.

The new tax is expected to net the city of Chicago an additional $12 million annually. "The amusement tax applies to charges paid for the privilege to witness, view or participate in an amusement," states the city's new ruling (pdf). "This includes not only charges paid for the privilege to witness, view or participate in amusements in person but also charges paid for the privilege to witness, view or participate in amusements that are delivered electronically." "Jurisdictions around the world, including the US, are trying to figure out ways to tax online services," a Netflix representative "Jurisdictions around the world, including the US, are trying to figure out ways to tax online services," a Netflix representative tells the Verge . "This is one approach."







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Most recommended from 67 comments



Kilroy

MVM

join:2002-11-21

Saint Paul, MN 52 recommendations Kilroy MVM Easy fix There is an easy fix for this. Netflix stops streaming to Chicago and presents a banner page that the currently elected officials have decided to tax the service and due to the efforts required to collect the tax they are no longer able to supply service. Include links to how to recall your elected officials. I'm sure Netflix is more popular than any politician.