Apple is going to collect additional fees for what is called “Netflix tax” in Chicago.
The state of Chicago introduced a revision of the entertainment tax in 2015, adding a 9 percent element to streaming services such as Spotify, Netflix and Apple TV+. Lawmakers called it the “Netflix Tax.”
Apple filed a complaint against the Amusement Tax in 2018, alleging it violated due process and the U.S. Constitution, as well as the Internet Tax Freedom Act. The lawsuit lasted two years before Chicago won the argument.
Cook County Circuit Court judge Daniel Duffy dismissed the charges, saying Apple’s challenge was insufficient. Also, the court gave Apple the opportunity to file an amended complaint, but the Cupertino-based company turned it down.
Apple TV+ subscribers in Chicago will be charged the “Netflix Tax” on September 15. As part of the deal, Apple will not be required to pay any taxes related to the service.