Daily Tax Report: State

Apple Must Wait to Challenge Chicago’s ‘Netflix Tax’

Feb. 1, 2019, 7:15 PM

A lawsuit by tech giant Apple Inc. over the constitutionality of Chicago’s “Netflix tax” was placed on hold until an Illinois appeals court rules on parallel litigation involving customers of Netflix Inc., Hulu LLC, and Spotify.

Cook County Circuit Court judge Michael Otto Feb. 1 denied the city’s motion to dismiss Apple’s challenge to Amusement Tax Ruling No. 5, a revenue program created in 2015 that imposes the city’s 9 percent amusement tax on streaming entertainment services.

However, Otto agreed to stay any additional proceedings in the Apple challenge while the Illinois Appellate Court rules in a case called...

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