Chicago Overstepping with Streaming Tax, Users Tell Ill. Court - Law 360 - Liberty Justice Center

Chicago Overstepping with Streaming Tax, Users Tell Ill. Court – Law 360

This article first appeared on Law360 on September 19, 2019.

(September 19, 2019, 4:41 PM EDT) — The city of Chicago’s amusement tax on streaming services like Netflix is an unconstitutional overreach of its authority, a state appellate panel heard Thursday in a first-of-its-kind test of a city’s streaming tax.

Streaming customers argue that the city’s 9% tax on amusements delivered and enjoyed electronically is an unconstitutional extraterritorial use of its taxing authority because it is not based on use of the service within city limits.

“There’s no way to tell where somebody is using an amusement,” Jeffrey Schwab of the Liberty Justice Center, who represents the customers, argued to a three-judge panel.

 

Read the full article on Law360.com

Want to Learn More?

You might Also like

Parents shouldn’t have to do this – LJC Blog

A group of Vermont parents are suing the state and local school districts over unequal access to education under the state’s 150-year-old Town Tuitioning system. The parents say the program violates the state constitution by allowing children residing in certain school districts to attend the...
Tennessee ESA Student

Tennessee Supreme Court agrees to hear school voucher case – ABC 9

"The plaintiffs are trying to have their cake and eat it, too, because on one hand they argue about how the how the Home Rule amendment affects the counties, and then on the other hand the argument about how it affects the school districts," Kelsey said. "Respectfully,...