Chicago ‘Cloud Tax’ To Add Cost To Netflix, Other Streaming Services

Posted: July 1, 2015 in Tech
Tags: ,

Netflix, Spotify and other streaming services just got more expensive in Chicago as an update to the city’s amusement tax went into effect Wednesday.

The change adds a 9 percent tax to Chicago residents’ subscriptions to streaming services such as Netflix and the paid version of Spotify. A city spokeswoman said it would bring in an expected $12 million a year.

At the same time, the city’s personal property lease transaction tax began levying a 9 percent tax on “nonpossessory computer leases,” in which residents pay to access data from a provider’s computer, as in the case of legal research databases, real estate or stock listings and cloud services.

The new ordinances allow Chicago to reap taxes on global services rendered locally, which is why some call the two together a “cloud tax.”

Source: [chicagotribune]

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