Chicago Adds Tax For Spotify And Netflix Users

All digital services fall under the city’s amusement tax.

July 03, 2015
Chicago Adds Tax For Spotify And Netflix Users Emmanuel Dunand / AFP Getty Images

The Chicago Sun Times reports that Chicago plans to levy a 9% tax on streaming service plans including Netflix and Spotify. The new regulation was approved on Wednesday, though the money won’t start flowing in until September 1. According to the Sun Times, the tax will yield around $12 million. “These two rulings are consistent with the city’s current tax laws and are not an expansion of the laws,” said mayoral spokeswoman Elizabeth Langsdorf. “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.” The city’s “amusement tax” adds a tax onto “everything from going to the movies, seeing a play or concert or attending a basketball game.” However, the Sun Times points out that Chicago is “the first major city to enact a tax on all digital services.” Apple Music was not mentioned in the article; however, if Apple Music users are not taxed, the city's legislation might end up driving music streamers towards that service.

Chicago Adds Tax For Spotify And Netflix Users