Labell v. City of Chicago challenges Chicago’s tax on subscriptions to streaming services, such as Netflix and Spotify. The Liberty Justice Center represents Chicago taxpayers who subscribe to these streaming services and are forced to pay the tax.

The excerpt below is from an article by Jeff John Roberts that appeared September 14, 2015, on Fortune. 

Local governments are taxing popular cloud services to make up for lost sales tax revenue. But they face a legal problem.

It’s on. Subscribers to popular streaming services, including XBox Live and Spotify, have filed a lawsuit that claims the city of Chicago’s controversial tax policy on digital entertainment is illegal.

The challenge to the tax policy, filed last week in Cook County state court, is important because it could help define the power of cities and states to tax parts of the internet economy.

Read the full article on Fortune.