Chicago Successfully Implements “Netflix Tax,” a Tax on All Streaming Services

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Chicago’s “Netflix Tax,” a 9% tax on all streaming entertainment services, appears to be proceeding as planned for the city. Despite filing lawsuits during its inception, most companies have opted to comply and pay the amusement tax.

This includes Sony, which recently paid the city $1.2 million for transactions made over services such as PlayStation Video. Chicago has also collected nearly $800,000 from Eventbrite and $70,000 from Fandango.

Last year’s Supreme Court decision allowing states to collect sales tax from all online purchases by their residents is likely to increase such efforts. As economic activity increasingly shifts online, digital taxes could provide a sizable revenue source for states and cities, Mazur said. The potential downside for consumers is that companies could raise prices in response.


Tsing Mui
News poster at The FPS Review.

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