Starting today Chicago is charging a 9 percent amusement tax. I have never heard of an amusement tax so I did a quick search which only turned up Chicago. This tax is not just if you go see a movie or catch a ball game in the city but it applies to the internet too. Netflix, spotify, and other entertainment websites must now charge this tax on anyone who is using the service in Chicago. Including if they are on a trip and stream some music while driving through the city. The entire cycle they are in must now be taxed. So if instead of monthly you are paying annually that is going to be a decent size fee.
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.
That was taken from an official statement released by the city of Chicago. This is going to be horrid on the internet based providers trying to track anyone that logs on from Chicago at all and adding a fee to that unlucky soul’s account.
Chicago has to have a better way to implement something like this. A small increase to sales or property perhaps even charging at the counter for amusements located within the city and not try to force such weird rules onto the rest of the world. I can easily charge a tax for someone with a Chicago address but to try to determine if they login from Chicago at anytime is ridicules.