Home > Labell v. City of Chicago
In Labell v. City of Chicago, the Liberty Justice Center is challenging the City of Chicago’s tax on subscriptions to streaming entertainment services such as Netflix and Spotify – the first tax of its kind in the country.
Chicago’s “amusement tax” has long imposed a nine percent tax on certain forms of entertainment, such as theaters, concerts and sporting events, and on certain recreational activities, such as amusement-park admissions, bowling and billiards.
In June 2015, the city comptroller issued a “Ruling” extending the amusement tax to cover new services – Internet-based streaming video, music and gaming services, such as Netflix, Spotify and XBox Live – even though the ordinance itself does not authorize taxation of those services.
The Liberty Justice Center filed a lawsuit challenging the tax on behalf of Chicago taxpayers who subscribe to various Internet-based streaming services and therefore have to pay the new tax on those services.
LJC’s lawsuit challenges the tax on numerous grounds:
Jeffrey M. Schwab is a Senior Counsel at the Liberty Justice Center, where he litigates cases to protect the rights to free speech, economic liberty, private property and other Constitutional rights in both federal and state courts across the country.
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