Apple will start collecting extra fees on what’s called ‘Netflix Tax’ in Chicago.
The state of Chicago introduced a revision to its Amusement Tax in 2015, adding a 9 percent element to streaming services such as Spotify, Netflix and Apple TV+. Legislators called it the ‘Netflix Tax’.
Apple filed a complaint in 2018 versus the Amusement Tax, saying that it violated due process and the US constitution, as well as the Internet Tax Freedom Act. The litigation went on for two years before Chicago won the argument.
Judge Daniel Duffy of Cook County Circuit Court dismissed the charges and said that Apple’s challenge was insufficient. Also, the court gave Apple the option to submit an amended complaint, with the Cupertino-based company declining it.
Apple TV+ subscribers in Chicago will start getting charged the ‘Netflix Tax’ on September 15. As part of the deal, Apple will not be required to pay taxes associated with the service.
