Apple to Pay Tax on Streaming Services in Chicago
Image by Joe Jensen from Pixabay
18 AUGUST 2022 - Some Apple services are about to be taxed in Chicago, though it’s unclear who will pay it. A piece from 9 to 5 Mac says the Cupertino-company will start paying tax on a few of its streaming subscriptions in the Windy City beginning next month. According to the piece:
The tax for streaming services in Chicago was actually a “reinterpretation” of a previous tax program that already established a city tax on tickets for recreational activities and concerts that are “delivered electronically.” The latest change to the tax program took effect in 2015. Other companies like Netflix and Spotify were also affected.
Apple and other streamers had sued to fight the tax, though they’ve backed off that. The fear seems to have been, if they lost, other cities would follow suit, citing Chicago’s victory as precedent for taxes of their own. So, Apple settled and agreed to start paying the tax. 9 to 5 Mac says Apple services set to be taxed include Apple Music, Apple TV+, and Apple Arcade. Apple News+ will not be subject to the tax, according to the report.
“According to local Chicago regulations,” the piece says, “streaming video, music, and gaming services are required to pay a 9% municipal tax.” While Apple will pay, 9 to 5 Mac says it’s unknown whether Apple will pass the tax on to consumers.
