City extends amusement tax to digital services.
The city of Chicago has announced a new 9 percent “cloud tax” as part of its existing taxes on the entertainment industries.
Coming into effect in September, the new tax applies to streaming services such as Spotify and Netflix and will affect “any paid television programming” as well as “electronically delivered music” according to an article by The Chicago Sun-Times.
The amusement tax already covers cinema and sports and is now extended to digital services, with the city expecting an additional $12 million a year thanks to the new “cloud tax”.
Opponents of the move say the law is antiquated and that a new tax would be more appropriate. As the Sun-Times article points out, the city’s decision could be a way to make up for the loss in sales from physical stores that have been replaced by streaming services. [Via Chicago Sun-Times.]