Citizens who opposed taxation on the monthly fee of distribution services such as Netflix and Hulu sued the city

By401 (K) 2012

In the city of Chicago in the United States "Amusement Tax RulingThe tax regulations on taxation of revising the tax regulations on September 1, 2015 to the use of Internet distribution of music, movies and TV programs are imposed. A situation occurred in which Chicago citizens complaining about this ordinance revision opposed the city and filed a lawsuit.

Filed Complaint and Exhibit
https://www.documentcloud.org/documents/2423240-filed-complaint-and-exhibit.html

Chicago citizens sue to halt new "Netflix tax," an increase of 9 percent | Ars Technica
http://arstechnica.com/tech-policy/2015/09/chicago-residents-sue-over-new-tax-that-raises-spotify-bills-by-9-percent/

Amusement Tax Ruling which is adopted in Chicago city is tax which is taxed on tickets of movies and sports events etc. On July 1, 2015, an amendment ordinance expanding the taxable object to Internet streaming service was issued It was. As a result of this revision, people using streaming services such as Netflix, Hulu, Spotify, and Xbox Live will be charged 9% of the monthly fee. Taxation on streaming services is expected to be $ 12 million per year (about 1.4 billion yen), which means that it will be a big tax income for the City of Chicago.

ByJacob Wolman

According to Melissa living in Chicago city, the revised ordinance took effect on September 1, 2015, the amount paid for using Spotify increased from 7.99 dollars (about 960 yen) to 8.71 dollars (about 1050 yen). Another user seems to have increased the money for Spotify usage by nearly 100 yen from 9.99 dollars (about 1200 yen) to 10.89 dollars (about 1310 yen).

Six citizens of Chicago who disagreed with this amendment ordinance said, "It is an act of overwintering that imposes 9% tax on streaming services, and the country establishesInternet tax free lawIt is against 'Chicago City' as 'it is against'. The Internet tax free law is a law prohibiting new taxation on e-commerce using the Internet.

If Chicago City loses litigation, the revision of the regulations will be invalid and the tax paid up to that time may be refunded. Jeffrey Schwab, a citizen counsel of Chicago City, said, "Despite the fact that there is no precedent, Chicago City seems to think that Amusement Tax Ruling will allow taxation on the usage fee for streaming services , I think that is wrong, "he says to Ars Technica.

ByPhilip Taylor

On the contrary, the City of Chicago does not show the attitude of drawing a step further, "I am confident that the new ordinance amendment does not greatly exceed the scope of Amusement Tax Ruling".

Chicago city is not the only one showing the movement to tax cloud services including streaming service.MassachusettsIn 2012, I tried to set a cloud service that required a software license as the object of taxation. Also, taxes related to the Internet have beenHungaryA draft of taxes imposed on Internet data transfer was submitted to Congress,NetherlandsIn some cases it was considered to legalize file sharing and tax the traffic.

Depending on the direction of the lawsuit in Chicago City, there is a possibility that movement to determine the taxation on streaming services will come out in other states and cities in the United States, and attention will be drawn in future developments.