The tax covers ‘amusements that are delivered electronically’
. The tax placed a 9 percent levy on “amusements that are delivered electronically” — essentially targeting streaming services.last year reported that revenues from the tax — widely thought to be the first of its kind — grew to over $30 million in the year ending June 30th, 2021.as it attempted to make up for the lost revenue from traditional brick-and-mortar stores. Apple filed its challenge in 2018, and was one of many groups and companies objecting to the law.
The case was put on hold for over two years while the challenge from users of streaming services worked its way through the courts. But, over time, these other legal challenges were either decided on behalf of Chicago , or settled, or dropped. Last week, a judge dismissed Apple’s amended complaint, which alleged that the tax is unconstitutional. Apple chose not to refile, according toAlthough revenues from the “Netflix tax” are just a small fraction of the city’s roughly $1.
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