Chicago's Internet Streaming Tax Is Illegal, Suit Says

Law360, Chicago (September 10, 2015, 4:14 PM EDT) -- A nonprofit that bills itself as pro-business has hit the city of Chicago with a lawsuit against the so-called "Netflix tax," arguing that expanding an amusement tax to encompass Internet streaming services is outside of the Department of Finance's authority.

Liberty Justice Center says in a lawsuit filed in state court Wednesday that city comptroller and Mayor Rahm Emanuel appointee Daniel Widawsky overstepped his authority when he issued a June ruling imposing a 9 percent tax on online video, music and gaming services like Netflix.

The current amusement tax, which allows the city to tax live events such as concerts and...

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