Chicago issues Cloud Tax on Stream Services

The Windy City has decided to tack on a 9% tax on users of any \”entertainment services\”. Yes folks, not only does this apply to Spotify, but our sacred Netflix account.

This is an addition to the amusement tax and will be enacted on September 1st. According to Chicago Sun Times, \”the tax will affect customers whose residential street address or primary business street address is in Chicago, as it’s written on their credit card billing address, ZIP code or “other reliable information”. Now, Chicago has upheld the amusement tax for awhile whether you\’ve noticed it or not. It has been added to sports events, movie tickets, and even concerts prices. The city has decided the tax needs to be implemented in other ways. This change will include, \”any paid television programming,\” or ,\”electronically delivered music,\” and so much more. To explain, any online service that provides rental movies, rental shows, video games, and music will have the tax added on. Even services involved in cloud computing and financials are apart of the amusement tax.

What does the city hope to get out of this? Well they expect to gather a total of $12 million dollars a year with this change. The reason behind this seems to be to expand tax base so the state can collect as much money as possible. Sadly, Chicago has been known in many other cases to be taxing or fining without much of representation. It is baffling that Chicago has resorted to interfere with our enjoyment for music for the sake of earning a profit. What really grinds my gear is that this action could have serious future consequences. Speculating on this idea, it could effect Spotify\’s business in this region (maybe avoid Chicago altogether). It could drive people to move out of the beautiful city. The worst I could imagine is that this could spark an uproar across the country to tax entertainment considering Chicago is the first to enact this tax.

Source: Chicago Sun Times

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