Nov 26, 2018

Chicago slaps PlayStation users with expansion of 9 percent amusement tax

Posted by in categories: entertainment, finance

PlayStation users will now see an extra 9 percent tax applied to some purchases on the platform.

Sony has agreed to comply with Chicago’s amusement tax, leaving PlayStation users to face an extra 9 percent tax on streaming and rental services, effective Nov. 14. This latest expansion of the city’s amusement tax will apply to purchases such as rentals, but not full sales of games.

The city’s amusement tax used to mostly apply to purchases of concert and sporting event tickets. However, the Chicago Department of Finance ruled in 2015 that the tax covered streaming services such as Netflix, Hulu and Spotify. This expansion of the amusement tax is commonly dubbed the “Netflix tax” or the “cloud tax.” In addition to being regressive, it is also likely illegal.

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