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Chicago adds 9% Cloud Tax

1 Jul, 2015

Chicago introduces a cloud tax, which sets a 9 percent tax on cloud services. The ruling is in two parts: the first part covers streaming media services like Netflix and Spotify, while the second covers remote database or computing platforms like Amazon Web Services or Lexis Nexis. Under the new law, $100 of server time in Springfield would cost $109 if you’re conducting it from an office in Chicago. Netflix is  already making arrangements to add the tax to the cost charged to its Chicago customers:

Jurisdictions around the world, including the US, are trying to figure out ways to tax online services. This is one approach.