Chicago Becomes First City to Collect a ‘Netflix tax’

According to CBS News, Chicago has successfully implimented what’s being referred to as a “Netflix Tax.”

Targeting many of today’s top streaming platforms; Netflix, Amazon Prime and Spotify have been directly affected by the new tax.

From the report:

Four years ago, Chicago imposed a 9% tax on streaming entertainment services, leading to a flurry of lawsuits. Now, the city has collected $2 million in sales tax from Sony and two online ticketing services, making it the first major city to collect such a tax successfully, Bloomberg reported.

The city collected $1.2 million from Sony in January, on services including PlayStation Video live events and purchases of music and video, according to Bloomberg. It also collected nearly $800,000 from Eventbrite and $70,000 from Fandango, the outlet said. The levy has been dubbed the “Netflix tax” because it targets streaming video services in addition to gaming and other digital entertainment.

The question is, as taxes start being implimented on larger streaming services, how do you think it will affect smaller online businesses, if at all?

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Thomas is a Graphic Designer, Web Developer, and founder of Rightly & Co. For over a decade, he’s had the privilege of working with a wide variety of individuals and organizations on a wide variety of projects.

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