Chicago’s Netflix Tax Could Get Fresh Look from States, Cities

States and municipalities will likely take a closer look at Chicago’s unique strategy for taxing streaming services after the Illinois Supreme Court waived off a constitutional challenge to the city’s controversial “Netflix tax.”

The state’s high court Wednesday denied a petition for an appeal filed by the plaintiffs, who include Chicago users of Netflix Inc., Hulu, and Spotify. The court issued no comments, but the denial sustains an October finding by the Appellate Court of Illinois, which concluded Chicago’s tax was properly enacted and carried out.

City officials said they would continue to enforce Amusement Tax Ruling No. 5 ...