Chicago 'cloud tax' to add cost to Netflix, other streaming services

[timosman]

http://www.chicagotribune.com/bluesky/originals/ct-chicago-cloud-tax-bsi-20150701-story.html



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.

[aGameOfThrones]

For The Children!!! Tax for streaming!

[Warrior_of_Freedom]

I'm confused. So that's 9% on top of any state sales tax?

[KingNothing]

.... for what reason? Other than these services being popular, what reason is there to tax them?

[dannno]

I would be ok with a 9% amusement tax...........if all other taxes were abolished.

[satchelmcqueen]

bs!! our gas tax in ga just went up 26 cents per gallon. also they are adding more tax to hotel fees for "the roads".

[Warrior_of_Freedom]

I think the 9% amusement tax should be used to pull pranks on public officials

[BarryDonegan]

http://truthinmedia.com/tax-on-streaming-services-takes-effect-in-chicago-netflix-spotify-prices-to-rise-9/

Chicago's consumers of streaming services like Netflix, Spotify, and some online games will begin paying 9% more for their subscriptions starting in September of this year under a new ruling by the Chicago Department of Finance that applies the city's amusement tax to streaming services used within city limits.

[alucard13mm]

Are there things that cant be taxed? Lol.

[phill4paul]

Are there things that cant be taxed? Lol.

No. There is not.

[morfeeis]

Could someone, anyone, for the love of grits and ham please explain to me how the government on any level is burdened with the cost of a streaming service? i'd also love to hear how this isn't double taxation.

[Warrior_of_Freedom]

Could someone, anyone, for the love of grits and ham please explain to me how the government on any level is burdened with the cost of a streaming service? i'd also love to hear how this isn't double taxation.

I think property tax is a larger issue than netflix when it comes to double, triple, quadruple, lifetime quarterly taxation.

[rg17]

What's next taxing our farts and burps?

[tod evans]

Could someone, anyone, for the love of grits and ham please explain to me how the government on any level is burdened with the cost of a streaming service? i'd also love to hear how this isn't double taxation.

It doesn't matter to them, they're severely overextended so in order to keep their voting base obligations must be met.

If you want to see Chicago change overnight don't let the government there cut checks on credit.

[roho76]

Are we taxed on the political "amusement" of our sacred overlords?

[muh_roads]

What's next taxing our farts and burps?

Carbon tax, so yep.

[LibertyRevolution]

And to think we started a revolution basically over tax on tea..

[kpitcher]

Time to educate people in Chicago how to avoid geo-location to use these services.

[Suzanimal]

I would love to see them post the phone number to the Mayor's office as the complaint line.

[Suzanimal]

Chicago sued over 'amusement tax' on streaming services Netflix, Spotify

WASHINGTON – A group of Chicago residents is suing the city for allegedly trying to sneak in a 9 percent tax on streaming services like Netflix, Spotify and Amazon Prime.

The non-profit Liberty Justice Center filed a lawsuit in Cook County Circuit Court on Wednesday claiming the city had no authority to impose the tax, approved in June, which is expected to result in bill hikes for thousands of Chicagoans.

The suit argues the city Finance Department’s decision is illegal, and the comptroller "exceeded his authority." Specifically, the suit claims the tax was slipped in using a creative interpretation of an old municipal code. Instead of passing a new tax, the city extended Chicago's existing "amusement tax" to include paid subscriptions for streamed digital music, TV shows and games.

Chicago city officials estimate the 9 percent amusement tax will raise $12 million annually to help close a budget gap.

But the lawsuit argues that Chicago aldermen should have had a vote in the decision to tax.

Each district in Chicago is represented by an alderman elected to serve a four-year term. There are 50 aldermen on the Chicago City Council.

"No aldermen voted on this tax,” Jeffrey Schwab, an attorney with the Liberty Justice Center, told The Chicago Tribune. “It never went before the Chicago City Council, which makes the so-called 'Netflix tax' an illegal tax. If the city wants to tax Internet-based streaming media services, then it should put the measure through the political process, and let Chicagoans have their voices heard through the democratic process."

More than two dozen other states charge for certain digital services. Washington has a 52-cent sales tax on a monthly Netflix subscription. In Wyoming, Mississippi and Vermont, residents pay an additional tax on music downloaded from iTunes. New Yorkers are charged an extra 12 cents to download the game Angry Birds.

At issue in Chicago is the way the tax was imposed.

Even if Chicago’s aldermen had voted in favor of the tax, the conservative-leaning Liberty Justice Center says it would still be illegal because the definition of “amusement” under the law doesn’t include gaming or audio services.

...

Chicago Mayor Rahm Emanuel's administration says "fairness" is one reason the tax is now being applied to Internet streaming of songs, movies and other programming. That content has long been taxed when delivered via big screens, cable TV, videotape or DVDs.

...

http://www.foxnews.com/politics/2015/09/11/chicagoans-sue-city-over-amusement-tax/?intcmp=hplnws

[Occam's Banana]

Even if Chicago’s aldermen had voted in favor of the tax, the conservative-leaning Liberty Justice Center says it would still be illegal because the definition of “amusement” under the law doesn’t include gaming or audio services.

You know we're pretty much screwed when they even have a definition for "amusement" "under the law" ...


Chicago Mayor Rahm Emanuel's administration says "fairness" "coz we da gummint, so fuck you" is one the only reason the tax is now being applied to Internet streaming of songs, movies and other programming.

Fixed it for them.

[Weston White]

Washington has a 52-cent sales tax on a monthly Netflix subscription. In Wyoming, Mississippi and Vermont, residents pay an additional tax on music downloaded from iTunes. New Yorkers are charged an extra 12 cents to download the game Angry Birds.

Clearly all of these taxes are unconstitutional under the new interpretation of the "equal protection" of the 14th Amendment.

[KingRobbStark]

Clearly all of these taxes are unconstitutional under the new interpretation of the "equal protection" of the 14th Amendment.

Bringing up the constitution as evidence is no longer valid. Wikipedia is much more consistent in content and meaning than the Constitution.

[LibForestPaul]

Time to educate people in Chicago how to avoid geo-location to use these services.
Yeah, the same people who voted these individuals into power. right...
I say double the fucking tax, or triple it, "if you can afford Netflix, you can afford a 25% amusement tax."
Think of the children...

[timosman]

You know we're pretty much screwed when they even have a definition for "amusement" "under the law" ...

Too nuanced for most of the people. They see no danger in this. :rolleyes: