Chicago has become the first major city to enact a tax on digital services, the Chicago Sun-Times reports. The Windy City is getting a "cloud tax" for "digital entertainment services," like Netflix and Spotify, starting September 1.
The tax is just an extension of the city's existing "amusement tax," which charges Chicagoans extra for seeing a movie or going to a ball game. This change means that "online services" will now fall under the city's list of amusements.
From the Sun-Times:
Netflix's streaming plans range from $7.99 to $11.99, while Spotify's premium service costs $9.99 a month. The city would collect 9 percent from those plans monthly.
In total, the city expects it will collect $12 million a year from the tax.
Lord help us.
[via the Sun-Times]