Apple’s Netflix tax lawsuit towards Chicago has been settled, however phrases not disclosed

The Netflix tax was launched within the metropolis of Chicago again in 2015. The then main of Chicago, Rahm Emmanuel, launched the Netflix tax to “shut a gaping funds gap.” The tax was referred to as an amusement tax and utilized to companies delivered electronically. You already know, like Netflix, Prime Video, VUDU, and dozens of others.

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In 2015 I wrote: Many cities, Chicago included, are preventing to regain tax {dollars} misplaced to on-line companies and amusements that might in any other case go into native actions. There are two sides to each argument, and it is easy to see the place the town goes with this new Netflix tax and why. However there are additionally legitimate arguments on the customers’ aspect, and that is the place the courts must determine who’s opinion holds extra weight. It is going to be attention-grabbing to see the place this goes and the way different cities react and tax on-line companies and amusements.

It’s now 2022, and there have been some developments within the story. Apple joined the battle in 2018 by submitting a lawsuit towards the town. In keeping with the Enterprise Normal, the tax positioned a 9-cent levy on streaming companies. Chicago collected greater than $30 million in income from its Netflix tax on June 30, 2021. In keeping with the Enterprise Normal, Apple has settled with the town, however the phrases weren’t disclosed.

“Apple and Chicago have come to phrases on a deal to drop the tech big’s lawsuit difficult the town’s first-of-its-kind tax on customers of streaming companies,” it added. The phrases of the settlement weren’t disclosed.

The Enterprise Normal

Different corporations like Sony and teams representing Netflix and Hulu have introduced authorized challenges towards the tax however courts have discovered no violations and have rejected the arguments.

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Final Up to date on July 25, 2022.

Netflix Tax-min