Last weeked Sony started to contact PlayStation Vue subscribers in Chicago to inform them that they plan to collect the new 9% “Entertainment Tax” in Chicago. PlayStation Vue had already collected taxes in select states and towns. Now starting later this month PlayStation Vue will collect “Entertainment Tax” in Chicago.
Here is the email Sony is sending out:
Taxes in the U.S. are subject to change by state, county, and city taxing authorities. In order to comply with rules relating to the City of Chicago Amusement Tax, beginning November 14, 2018, PlayStation Store will start collecting amusement tax on receipts from PlayStation Vue (and other PlayStation services) from customers with a billing address within the City of Chicago. The City of Chicago’s amusement tax rate is currently 9%.
This new tax also targets services like Netflix, Hulu, Amazon Music, and more. Other companies are suing to try and block the entertainment tax. Sony has decided to accept the new tax and is now passing along the tax to their subscribers.
Many local governments have been looking for ways to replace lost revenue from cable TV taxes as the number of subscribers are dropping. The good news is the taxes are still lower on streaming services vs cable TV the bad news is this new tax also targets music services and video on demand services like iTunes, Amazon, and more. For now, only a few areas have an entertainment tax. Keep an eye out to see if your local government is trying to pass a new entertainment law like Chicago has.
Cord Cutters News will keep an eye on the lawsuits trying to block this new tax. We will post updates as we learn more.
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