Chicago Puts Streaming Tax on Spotify, Netflix

People in the Windy City soon will be paying a little more to stream their favorite movies, TV shows and music.

Chicago has enacted a “cloud tax,” which will tack on 9 percent to streaming services like Netflix and Spotify, the Chicago Sun-Times reported.

It’s an expansion of the city’s amusement tax, which taxes things like movies and tickets to sporting events. The streaming provision of the amusement tax takes effect in September, and the city estimates it will bring in $12 million annually.

The Sun-Times reported that Chicago is the first major city to enact a tax on digital services. Other cities, such as New York, already tax entertainment and information services.

“In an environment in which technologies and emerging industries evolve quickly, the city periodically issues rulings that clarify the application of existing laws to these technologies and industries,” said mayoral spokeswoman Elizabeth Langsdorf in a statement.

This story first appeared on The Hollywood Reporter.

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