Chicago’s Controversial ‘Netflix Tax’ Gets OK From Illinois Court

An Illinois appeals court showed little patience for a constitutional challenge to Chicago’s “Netflix tax,” ruling Oct. 1 the city’s levy on streaming entertainment services had been properly enacted and implemented.

The Appellate Court of Illinois upheld an earlier circuit court ruling that granted Chicago summary judgment in a challenge to the controversial tax. The case had been closely watched by cities across the country because Chicago is one of the few jurisdictions to go after streaming services with a focused tax scheme.

Chicago users of Netflix Inc., Hulu, and Spotify had argued Amusement Tax Ruling No. 5 ...