This information is pretty interesting: The city of Chicago will be placing a 9% tax on subscriptions to streaming services. Basically, this tax will effect companies such as Spotify and Netflix, and other streaming services — which was approved on Wednesday of this week.
As the Chicago Sun Times reports, spokeswoman Elizabeth Langsdorf made a statement regarding Chicago’s latest “cloud tax.” Read here:
“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.”
Chicago’s “amusement tax” will generate $12 million a year in revenue, and will be the “first major city” in the US to employ a tax on “all digital services.” Interesting…
Stay tuned.
