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Chicago ‘Netflix Tax’ Exempts Smaller Streaming, Cloud Services (1)

Jan. 22, 2021, 8:54 PMUpdated: Jan. 22, 2021, 11:23 PM

Chicago will inject an economic presence standard and a safe harbor for smaller streaming and cloud services into its administration of the city’s “Netflix tax,” beginning July 1.

Chicago’s Department of Finance issued a bulletin late Thursday outlining its enforcement of the amusement tax (Ruling No. 5) as applied to streaming entertainment services, and its Personal Property Lease Transaction Tax, which applies to internet-based computing services.

The department said it expects out-of-state businesses doing business in Chicago and meeting new economic presence, or nexus, standards to fully comply with the amusement and cloud taxes “on a ...