Apple will start collecting 'Netflix tax' in September
Apple will begin collecting taxes on Apple TV+ subscriptions within Chicago as part of its settlement relating to the city's 2015 Amusement Tax.
Apple TV+
In July, Apple gave up its four-year fight against Chicago's so-called "Netflix Tax." The tax requires the tech giant to pay a 9% tax on streaming service income earned from Chicago subscribers.
According to Bloomberg Law, Apple has agreed to collect the tax, starting September 15, from customers in Chicago. As part of the settlement, Apple will not need to pay back taxes.
In 2015, Chicago introduced a change to its Amusement Tax that placed a 9% tax on streaming entertainment services. Also referred to as a "Netflix Tax" and impacting services like Netflix, Spotify, and Apple's own Apple TV+.
Three years later, Apple filed a lawsuit against the city, arguing the tax violated the federal Internet Tax Freedom Act and the U.S. Constitution's commerce and due process laws. The case hung in courts for more than two years.
Eventually, Chicago won the trial. Afterward, Apple amended its complaint to say that case was a "facial challenge" to the tax program but that Apple was challenging how the tax was applied to its own services.
Cook County Circuit Court Judge Daniel Duffy dismissed the lawsuit. He declared that Apple's filing was an insufficient challenge and gave Apple leave to file an amended complaint.
Apple chose to settle rather than file an amended complaint.
Read on AppleInsider
Apple TV+
In July, Apple gave up its four-year fight against Chicago's so-called "Netflix Tax." The tax requires the tech giant to pay a 9% tax on streaming service income earned from Chicago subscribers.
According to Bloomberg Law, Apple has agreed to collect the tax, starting September 15, from customers in Chicago. As part of the settlement, Apple will not need to pay back taxes.
In 2015, Chicago introduced a change to its Amusement Tax that placed a 9% tax on streaming entertainment services. Also referred to as a "Netflix Tax" and impacting services like Netflix, Spotify, and Apple's own Apple TV+.
Three years later, Apple filed a lawsuit against the city, arguing the tax violated the federal Internet Tax Freedom Act and the U.S. Constitution's commerce and due process laws. The case hung in courts for more than two years.
Eventually, Chicago won the trial. Afterward, Apple amended its complaint to say that case was a "facial challenge" to the tax program but that Apple was challenging how the tax was applied to its own services.
Cook County Circuit Court Judge Daniel Duffy dismissed the lawsuit. He declared that Apple's filing was an insufficient challenge and gave Apple leave to file an amended complaint.
Apple chose to settle rather than file an amended complaint.
Read on AppleInsider
Comments
Now i want to relax and enjoy, restore my energy (so that i could work hard again and pay taxes), and government makes it even more expensive for me (and thus more difficult to do).
So my energy restoration is diminished, my productivity is lower, I earn less, and pay less income taxes.
Tell me who is the winner in this situation?
It seems only who is better off from this ‘Amusement tax’ are layers.
Why is it that everytime someone complains about paying more taxes, people like you cry like Chicken Little yelling "the sky is falling". Why is it that the libraries and playgrounds must close, if we don't approve paying more taxes? Or the Fire Dept. will no longer have the funds to come to come to our home to put out a fire? Or our 911 calls will go unanswered? Why is it always the services that most taxpayers needs, wants and are willing to pay taxes for, that will suffer it we don't pay more taxes? Why isn't the government first going after all the tax money that is wasted, rather than reaching deeper into taxpayers pocket?
I would not be surprise if CA government waste more of taxpayers money, than some States whole budget.
this is just the tip of the iceberg .....
https://www.mtdemocrat.com/opinion/guest-column-roundup-of-wasted-taxpayer-money/
https://www.hoover.org/research/california-legislators-spend-200-billion-and-taxpayers-get-less-and-less
https://www.independent.org/publications/cagoldenfleece/
About the only taxpayers that gets their moneys worth from paying taxes are the union public employees, plus elected and appointed public officials.
https://www.forbes.com/sites/adamandrzejewski/2020/05/19/why-california-is-in-trouble--340000-public-employees-with-100000-paychecks-cost-taxpayers-45-billion/?sh=261be83b5fb8
And speaking of fixing potholes and why they don't get fix in CA, even though CA is one of the State with the highest gas tax, in the Nation.
https://reformcalifornia.org/yes-on-6-releases-top-10-worst-examples-of-waste-fraud-and-abuse-of-gas-tax-funds-in-caltrans-and-local-transportation-agencies/
The City and County of SF have a population of 850,000, is only 49 square miles and a $14B annual budget. A budget bigger than about a dozen States. With that much tax money, SF should remind you of Singapore or Dubai. But instead, a good part of it will remind you of the slums of New Delhi. Don't tell us public services like libraries, playgrounds, fire, police, 911, public transportation, clean streets, etc, has to suffer, unless we pay more taxes because there is no waste in tax spending.
https://www.hoover.org/research/only-san-francisco-61000-tents-and-350000-public-toilets
SF spends abut $1B on homelessness and this is one of their solution. The SF politicians must look out their office windows in City Hall daily and pat each other on the back for a job well done.
https://www.sfexaminer.com/archives/sf-s-first-sanctioned-camping-site-for-the-homeless-gives-residents-a-safe-place-to/article_0a29c011-f66e-538e-a996-abef83157f02.html
Look at it this way. Suppose you gave your kid $50 a week to buy lunch at his school cafeteria. Then on Wednesday of one week, he ask for another $20 so he can buy lunch on Thursday and Friday. So you asked him what happened to the $50 he got on Monday? And he told you he spent $20 of it on a cool virtual outfit while playing Fortnite. Now, would you just hand him the $20 and then increase his lunch money to $70 next week, to reward him for wasting some of his lunch money? Well, that's what the government wants taxpayers to do.
https://www.democrats.senate.gov/imo/media/doc/inflation_reduction_act_one_page_summary.pdf
https://www.washingtonpost.com/business/the-1percent-tax-on-stock-buybacks-is-just-the-start/2022/08/17/8bd011a0-1e1c-11ed-9ce6-68253bd31864_story.html
The goal of private enterprise is always to sustain itself. Any other goal is folly.