Skip to content Skip to footer

Loading Results

Chicago budget includes ‘cloud tax’ increase

December 2020


The Chicago City Council has approved an increase to its personal property lease transaction tax as it applies to nonpossessory computer leases. Effective January 1, 2021, the tax rate applied to certain cloud services will increase from 7.25% to 9%, which is the rate generally applied to personal property leases.

The takeaway

The City of Chicago applies the ‘cloud tax’ to remote software access, which generally is sourced to the location of software use. Taxpayers may apportion the tax when software use occurs both inside and outside the city. Especially in the current remote work environment, taxpayers should examine such use in their organizations to determine the appropriate sourcing of remote software access charges and file refund claims where supported by such analysis.

Contact us

Peter Michalowski

National SALT Practice Leader, PwC US

Follow us