Chicago Taxes Internet Services Including Online Gambling

The city of Chicago has introduced a 9 percent tax on digital services/amusement for internet services including online gaming. The sales tax is expected to generate around $12 million in revenue.

Chicago has introduced a 9 percent tax on city residents who use internet services such as online gaming, Netflix and Spotify.

The new implementation of the tax is expected to generate around $12 million in extra revenues annually.

The tax applies to all customers with a Chicago address and is expected to raise about $12 million in revenue for the city. The “amusement tax” includes all electronically delivered amusements.

The law seems to anticipate—or at least prepare for—online gambling being legalized, whether in Illinois of the country as a whole.

“In an environment in which technologies and emerging industries evolve quickly, the city periodically issues rulings that clarify the application of existing laws to these technologies and industries,” mayoral spokeswoman Elizabeth Langsdorf said in a press statement.

“These two rulings are consistent with the city’s current tax laws and are not an expansion of the laws,” she said. “These ensure that city taxation is uniformly and fairly applied and that businesses are given clear guidance on the applicability of the city’s tax laws to their operations, and they clarify that the amusement tax and personal property lease tax apply to digital services.”