Chicago Residents To Get Hit With 9 Percent 'Netflix' Tax

You may want to dig out that old membership card to the corner video store. Chicago residents who pay to stream music and movies from services like Netflix and Spotify will have to fork over an additional 9 percent, thanks to a new ruling the city’s Finance Department.

The added costs extend the reach of ordinances governing the city’s amusement tax and the city personal property lease transaction tax. Increasing fees the of products streamed to businesses and residents are expected to raise about $12 million each year, the Chicago Tribune reports.

Companies have until Sept. 1 to begin paying the taxes, but they can start collecting the taxes now, according to the new rules.

The 9 percent amusement tax tacked on to tickets for concert and sporting events, will now be spread to paid subscriptions for streamed digital music and and streamed rental movies or TV shows, and “for the privilege of participating in games online or otherwise,” if the person paying to receive the data is in Chicago, the Tribune said.

The expansion of the taxes does not apply to music, games and movies purchased electronically.

A spokesman for Netflix told the Tribune that the company will be passing the additional cost on to Chicago customers, but would not say when this will go into effect.

Read the full story in the Chicago Tribune