The city of Chicago has become a pioneer in collecting tax revenue from digital entertainment like streaming videos and gaming. The “Netflix tax,” as it is called, is a 9 percent sales levy on streaming entertainment that has already brought in $2 million to the city. Chicago is believed to be the first major city in the country to collect taxes from online streaming services, and the Windy City may have paved the way for other cities and states to follow its lead. The U.S. Supreme Court last summer cleared a path for states to collect sales tax from online shoppers, ending a decades-old law that affected online sales. The court said in the South Dakota vs. Wayfair case that “the internet’s prevalence and power have changed the dynamics of the national economy,” according to a CBS news report.
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by Scott mcdonald
May 16, 2019