Posted on 03/12/2017 7:52:52 AM PDT by KeyLargo
Illinois pitches sales tax for Netflix, Spotify, other streaming services
Joe Kaiser
The city issued notice in November 2016 that it was again expanding its 9 percent amusement tax, this time to businesses subscribing to paid programming – a creative way to skirt federal law prohibiting taxing satellite providers the same as cable providers, the latter of which the city already taxes. By directly taxing businesses – such as restaurants or bars that subscribe to satellite TV for sports packages – the tax is imposed directly on the consumer rather than the satellite provider. This means each business that buys an annual premium sports subscription, which can cost $5,000-$10,000, could be paying more than $400 in new taxes every year under that tax. And these same businesses would be hit again if the state implements the proposed sales tax on cable and satellite TV.
The Senate’s tax would be imposed on “the privilege of using [the taxable service] in this State,” according to the proposed legislation. That language makes the application and collection of a tax on streaming services ambiguous and potentially illegal. First, what does using a streaming service in Illinois mean? Does it apply to a person with a layover at O’Hare International Airport who is passing the time watching Netflix on her tablet? Or does it apply to any resident of Illinois regardless of whether she is within state lines when she uses Spotify or Netflix? The bill doesn’t say.
Second, this bill would require any company in the world that offers streaming services on the internet to become a tax collector for the state of Illinois simply by having one customer who lives (or uses) its streaming service in Illinois. That requirement is likely illegal.
2013, the Illinois Supreme Court ruled unconstitutional the state’s “Amazon tax,”
(Excerpt) Read more at illinoispolicy.org ...
Pennsylvania already did this, with a six percent tax added automatically when you buy streaming from Amazon.
Bankrupt gov’ts will grasp at anything.
Unless Trump forcefully drains the swamp its only going to
get worse
How about a 20% Gang Banger Tax?
That oughta raise some money.
You’d just set up a fake address in Texas, use an non-Ill IP service and skip this tax.
Illinois is rapidly becoming the California of the middle west. A state to stay away from.
I am thoroughly convinced that Illinois wants to surpass Detroit as the shining example of government failure.
Just saw this on Facebook. You will now be required to get a boat permit for an inner tube and can get a OWI for floating around on one drunk in Illinois.
Unless Trump forcefully drains the swamp its only going to get worse
Such States will only hurt themselves by hurting their citizens....not sure what role Trump/the Feds should play in this....
ANYthing other than dealing with the root of the problem?: decades of one-party rule by DEMOCRATS.
Taxing inner tubes, kayaks and canoes? Well, Illinois is run by Chicago, whose residents don’t use any of those things.
My (Illinois) homerule municipality foolishly signed a 28 year iron clad contract to purchase 100%(actually closer to 120%) of its electricity from a downstate “dirty coal” boondoggle. The corrupt school board is over 250 Million dollars in debt and will be increasing the property taxes at least 5% per year for the next 20 years. They have a $20 Million dollar library referendum on the ballot.
I have been working from home for the last 11 years so I can go anywhere there is reasonable Internet. Is it time to go yet? Made a life here but my three kids are all grown and largely moved out but no grandchildren in sight. where to go, where to go...
“Illinois is rapidly becoming the California of the middle west.”
Homer, I’m not picking on you, because many people do this, but:
I never understood this. The central United States runs from ND down to TX. Illinois is east of the center.
If Illinois is east of the central US, how in the world can it be part of the west? The middle part at that????
It’s something on the order of saying a dogs ears is located in the middle part of it’s rear end.
Much of my family is here, but we've had enough. People downstate are decent folks, save for a few outsiders infesting the few blue counties. Chicago is beautiful to visit, but I wouldn't live there. The surrounding counties edged more Democrat this past election, highlighting the conservative brain drain from the state.
Get out now, before they place an expat tax on you, where they ding you for the percentage of debt you previously agreed to pay as a resident, but now bailed on.
...Illinois is rapidly becoming the California of the middle west. A state to stay away from....
No rapidly becoming to it. It has been politically corrupt over a century.
I suspect the “Midwest” is a historical anomaly from when the borders of the US were different, like “Northwestern” University in Chicago.
Nit picking
More taxes? That’s sure to stanch the flood of people leaving the Land of Lincoln. Caution: brilliant pols at work.
My thoughts exactly but it’s heartbreaking that there are so many memories here, my grandfather left Belfast Ireland in 1910 and landed in Chicago, still seems foolish to remain in a burning house.
In 1787 Illinois made up the south-west corner of what was called the North-West Territories. We have out grown the original definition. Ohio was the far East as far as the territories were concerned.
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