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Can New Chicago Taxes On Netflix, Apple, Spotify Withstand Legal Challenges?

Posted by samzenpus on from the pay-the-man dept.

Mr D from 63 writes: Today, a new "cloud tax" takes effect in the city of Chicago, targeting online databases and streaming entertainment services. Residents who stream movies and music from companies like Netflix and Spotify will now need to pay an additional 9% tax. This also applies to Chicago businesses that pay to use databases online. Chicago expects to collect $12 million a year as a result of the new tax ruling. From the 24/7 Wall St. story: "Also worth noting is that the city’s tax ruling in both cases avoids the issue of whether there is a close-enough connection (nexus, in legalese) to require providers like Netflix or others to collect either tax. International law firm ReedSmith weighs in on this point as well: '[O]nce the Department begins to audit and assess customers located within the city, many of those customers are likely to demand that providers collect the tax going forward. As a result, many providers will likely feel the need to register to collect the taxes, despite lacking nexus, and despite having strong arguments against the Department’s expansive interpretation of its taxing ordinances.'"

4 of 188 comments (clear)

  1. Taxes by Anonymous Coward · · Score: 2, Interesting

    Legalized theft.

    You want what someone else has, and you're willing to steal it at the barrel of a gun.

    Fuck you.

    1. Re:Taxes by alvinrod · · Score: 3, Interesting

      You can't have no taxes and a government that wants to promise the world at the same time. Low taxes are fine if you have a government that isn't spending anything on programs and by the same token if you have a government that has or wants to have a lot of policies and programs, it is going to need to have a revenue stream to support them.

  2. Last Out Queue by pubwvj · · Score: 4, Interesting

    Will the last person to leave Chicago please turn off the lights?

  3. What the fuck?!! by codepigeon · · Score: 5, Interesting

    This is way off topic, but what the fuck is happening to slashdot. I just now noticed something blaring from my headphones on the floor. Apparently it was some kind of audio ad and for the life of me I didn't know which part of the webpage was playing it.!??!

    Then I happen to notice that the 'busy circle' at the top of the chrome tab has been spinning for at least 5minutes. Are you fucking kidding me?

    Here are two of them that I noticed. God only knows how many others were busy doing god knows what. (liverail.com and advertising.com) (I wont post actual links)

    I can't stand the "slashdot is dying" meme, but I think I am close to moving on to another news aggregate. -Slashdot reader since ~2000AD