Chicago’s Tax of Netflix, Spotify Subscriptions Challenged in Court - Hollywood Reporter - Liberty Justice Center

Chicago’s Tax of Netflix, Spotify Subscriptions Challenged in Court – Hollywood Reporter

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 Eriq Gardner that appeared September 11, 2015, in the Hollywood Reporter

Legal group says city can’t levy Netflix’s video streaming service if the tax does not apply to the video-by-mail service.

The City of Chicago’s recent move to extend its 9 percent “amusement tax” to streaming services is an abuse of authority, claims the Liberty Justice Center in a lawsuit filed on Wednesday in a circuit court in Illinois.

The conservative legal group, representing local residents who pay for subscriptions to Netflix, Amazon Prime, Spotify, Hulu and XBox Live, challenges the way in which public officials extended the definition of “amusement” in June. The rulemaking happened not by a vote of the city council, but rather through the interpretation of an old municipal code by the comptroller, who “exceeded his authority,” according to the complaint.

Read the full article in the Hollywood Reporter

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