Chicago to charge 9% tax on Netflix

[Metalhead]

http://www.dslreports.com/shownews/Chicago-to-Apply-9-Netflix-Tax-134367

 

Netflix service in Chicago is about to get notably more expensive. On the hunt for new revenue, Chicago's Department of Finance is applying two new rules that would impact companies like Netflix and Spotify. One covers "electronically delivered amusements" and another covers "nonpossessory computer leases"; together they form a unique and troubling new attempt by cities to tax any city resident that interacts with "the cloud. According to the Chicago Tribune, streaming service providers need to start collecting the tax starting September 1.

 

The new tax is expected to net the city of Chicago an additional $12 million annually.

"The amusement tax applies to charges paid for the privilege to witness, view or participate in an amusement," states the city's new ruling (pdf). "This includes not only charges paid for the privilege to witness, view or participate in amusements in person but also charges paid for the privilege to witness, view or participate in amusements that are delivered electronically."

"Jurisdictions around the world, including the US, are trying to figure out ways to tax online services," a Netflix representative tells the Verge. "This is one approach."

Edited July 2, 2015 by Metalhead

[Metalhead]

I wonder how long it will take for this to catch on in more places.

[DaveTN]

As jobs are lost, cities, states and the Feds don’t decrease their budgets; they just raise taxes.

[LagerHead]

http://www.dslreports.com/shownews/Chicago-to-Apply-9-Netflix-Tax-134367
 
Netflix service in Chicago is about to get notably more expensive. On the hunt for new revenue, Chicago's Department of Finance is applying two new rules that would impact companies like Netflix and Spotify. One covers "electronically delivered amusements" and another covers "nonpossessory computer leases"; together they form a unique and troubling new attempt by cities to tax any city resident that interacts with "the cloud. According to the Chicago Tribune, streaming service providers need to start collecting the tax starting September 1.
 
The new tax is expected to net the city of Chicago an additional $12 million annually.

But in reality will only lead to an explosion in the use of Internet anonymizers and other proxies in order to avoid paying a tax whose implementation defies logic.

At least until the Supreme Court rules it unconstitutional.

[xsubsailor]

 I'm sure Memphis will gladly jump on the band wagon, they're in debt up to their eyeballs.

[2.ooohhh]

"the taxes violate both the Federal Telecommunications Act and, in the case of the second ruling, 1998's Internet Tax Freedom Act, intended to prevent discrimination against services delivered over the internet." 

 

Much like Chicago's firearms laws, these will likely last right up until they get to court.

 

Source- http://www.theverge.com/2015/7/1/8876817/chicago-cloud-tax-online-streaming-sales-netflix-spotify

Edited July 2, 2015 by 2.ooohhh

[94user]

As jobs are lost, cities, states and the Feds don’t decrease their budgets; they just raise taxes.

QFT.  one day the rock won't bleed  anymore no matter how hard they squeeze.

[CommsNBombs]

So it has begun. It wont take long for that to catch on.

Yah proxies and VPNs will definitely help, but they are still weak because theyre widely available - theyll just charge you with cyber crime and tax evasion.

Welcome to tyrannical federalism...thanks Lincoln!

Sent from my SPH-L720 using Tapatalk

[Jonnin]

they would probably make more if they taxed all the ppl watching free "adult" content and utoob.   And they get to play big brother too.  Some liberal moron wasn't thinking clearly when they picked Netflix, which is only used by the 5 or 10 honest ppl left in the world that don't know how to pirate a movie.

[Ugly]

As jobs are lost, cities, states and the Feds don’t decrease their budgets; they just raise taxes.

 

The land of make believe that has 5.3% unemployment doesn't pay the bills when you look at the actual employment numbers. 

 

I dig netflix but would drop em if they are taxed where I am. 

[john455]

That reminds me I need to cancel my Netflix I haven't used it in over 6 months but have been paying every month, that's why I hate autopay services.

[Ugly]

Netflix has some pretty cool shows, I am impressed with it. I didn't get on board till after they split their mail and online service but think it's a value for what it is. 

 

Of course with the new "net neutrality" or what ever the takeover by the fed is, I'm sure end users will be affected by data rates before long which will drive up the prices in addition to any creative taxes these clowns come up with. 

[zybysco]

The land of make believe that has 5.3% unemployment doesn't pay the bills when you look at the actual employment numbers.

I dig netflix but would drop em if they are taxed where I am.

Netflix is already taxed, just not by a city.

[musicman]

Amusement tax... in my own home?! Stupid clowns. What happens if one of those crazy liberal democrats finds out making whoopie is fun?! It's taxing enough gettin' wifey to give it up half the time. Edited July 3, 2015 by musicman

[Monkeyman2500]

Chicago has had an "entertainment " tax for a long time. Their just trying to squeeze a dime out of another spot. If it spreads to other places that will be a problem.