Chicago: Cloud Tax?

cloud taxThe city of Chicago announced recently that is plans to add a 9% tax on “electronically delivered amusements” such as Netflix and Spotify. Currently several major cities around the U.S. tax the sale of physical goods over the internet, but Chicago will be the first city to tax the streaming of entertainment media.

While this sounds great for Chicago bureaucrats, the 1996 Telecommunications Act and the 1998 Internet Tax Freedom Act may roadblock this “cloud tax”.


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