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Users of Streaming Services Seek to Scrap Chicago’s Netflix Tax

Sept. 19, 2019, 10:10 PM

Chicago’s “Netflix tax” operates as an extraterritorial tax that must be found unconstitutional because it treats taxpayers inconsistently, an attorney representing consumers of streaming entertainment services told an Illinois appeals court Sept. 19.

But a counsel for Chicago—defending in the first legal challenge of a municipal streaming services tax in the country—said minor inconsistencies in the treatment of taxpayers are essentially irrelevant in the context of a facial constitutional challenge, in which the plaintiffs must demonstrate a statute or a regulation is always unconstitutional.

During oral arguments before the Appellate Court of Illinois, users of Netflix Inc., Hulu, and Spotify ...