City of Chicago tax on streaming services survives challenge

June 2018

Start adding items to your reading lists:
Save this item to:
This item has been saved to your reading list.


On May 24, 2018, the Circuit Court of Cook County denied a motion for summary judgment claiming the City of Chicago’s 9% amusement tax on certain electronically-delivered amusements violates the Internet Tax Freedom Act, the Commerce Clause, the Uniformity Clause, and home rule authority under the Illinois Constitution.

The takeaway

The Department’s application of the amusement tax to Internet-based streaming services may open the door for other states to enact similar legislation or guidance. Providers of streaming services should be cautious of Ruling #5 and consider their nexus footprint to determine whether they should start collecting and remitting tax.

Contact us

Peter Michalowski
National SALT Practice Leader
Tel: +1 (646) 471 5259

Follow us