Illinois Wants to Expand Chicago’s Netflix Tax Statewide





woman holding bill looking confused

Chicago was one of the first areas to specifically tax streaming services. If you live in Chicago and subscribe to services like Netflix and even music services like Spotify you have to pay a special tax.

Now lawmakers in Illinois’ House have proposed a statewide tax on services called the “Entertainment Tax Fairness Act,” that would add new 5% taxes to satellite and video streaming services.

This is part of a bigger effort to raise taxes including the doubling of the state’s gas tax and a proposed plastic bag tax. Governor J.B. Pritzker has proposed a budget for fiscal year 2020 that includes new and increased taxes totaling $4.5 billion.

Many states charge a sales tax on streaming services, but a few places like Chicago charge a tax focused on streaming services. Some states have pushed back on the idea of special taxes focusing on streaming. Others have argued like Illinois that if they tax cable they should also tax streaming. This is seen as a way to regain taxes lost when people cancel cable TV but others argue that these taxes on streaming are lower than on cable TV.

For now, the bill has only been proposed. If you live in Illinois, you can reach out to your representative to let your voice be heard.

Source: Illinois Policy

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