Illinois – City of Chicago Electronic Download Amusements Subject To 9% Tax Starting September 1, 2015 Amusement Tax Ruling #5

SALT Report 3706 – Downloaded music, videos, gaming and so on…subject to an additional 9% amusement tax in the City of Chicago.

The City of Chicago released their Ruling #5 on June 9, 2015 with an effective date of July 1, 2015. In order to allow taxpayers time to set up their compliance model with system changes the City is limiting the effect of this ruling to after September 1, 2015.

Pursuant to Ruling #5:

The amusement tax applies to charges paid for the privilege to witness, view or participate in an amusement. This includes not only charges paid for the privilege to witness, view or participate in amusements in person but also charges paid for the privilege to witness, view or participate in amusements that are delivered electronically. Thus:

a. charges paid for the privilege of watching electronically delivered television shows, movies or videos are subject to the amusement tax, if the shows, movies or videos are delivered to a patron (i.e., customer) in the City (see paragraph 13 below);

b. charges paid for the privilege of listening to electronically delivered music are subject to the amusement tax, if the music is delivered to a customer in the City; and

c. charges paid for the privilege of participating in games, on-line or otherwise, are subject to the amusement tax if the games are delivered to a customer in the City.

For further information:

http://www.cityofchicago.org/content/dam/city/depts/rev/supp_info/TaxRulingsandRegulations/AmusementTaxRuling5-06092015.pdf