Illinois Finds Amusement Tax Covering Internet-Based Streaming Services Constitutional

The Illinois Circuit Court upheld the constitutionality of Chicago’s amusement tax covering internet-based streaming services. The circuit court noted that administrative convenience justified Chicago’s imposition of the 9 percent tax based on the amount customers paid to use amusement devices. The court noted that the tax 1) had substantial nexus with Chicago and wasn’t extraterritorial because it concerned services, which Chicago provided to residents; 2) was fairly apportioned because it was based on the customer’s billing address, reflecting that the services were primarily used at their residence; 3) didn’t violate the uniformity clause by applying at different rates to various ...