Chicago Netflix & etc. customers, your bill is about to go up 9 percent. Obama's Chicago has found a way to tax the cloud & amusement!!

Yes I made up half the above title.

Starting Wednesday, (yesterday) the city of Chicago’s new "cloud tax" went into effect: it imposes a 9-percent tax on "patrons of amusement," including those services that are "delivered electronically."

In short: Netflix users in Chicago will be paying a little extra for their subscriptions pretty soon.

"We will be adding it to the cost we charge subscribers," Anne Marie Squeo, a Netflix spokeswoman, told Ars in a statement. "Jurisdictions around the world, including the US, are trying to figure out ways to tax online services. This is one approach."

She declined to respond to further questions.

To be clear, the "Amusement Tax Ruling" applies to a number of digital services, including Netflix. As it states:

The amusement tax applies to charges paid for the privilege to witness, view or participate in an amusement. 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. Thus:

a) charges paid for the privilege of watching electronically delivered television shows, movies or videos are subject to the amusement tax, if the shows, movies or videos are delivered to a patron (i.e., customer) in the City (see paragraph 13 below);

b) charges paid for the privilege of listening to electronically delivered music are subject to the amusement tax, if the music is delivered to a customer in the City;

c) and charges paid for the privilege of participating in games, on-line or otherwise, are subject to the amusement tax if the games are delivered to a customer in the City.


MORE....
[link to arstechnica.com]

Last Edited by 411 on 07/02/2015 08:19 PM