Apple settles lawsuit against Chicago\u2019s \u2018Netflix Tax\u2019 - Science and Nerds<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/scienceandnerds.com\/2022\/07\/25\/apple-settles-lawsuit-against-chicagos-netflix-tax\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Apple settles lawsuit against Chicago\u2019s \u2018Netflix Tax\u2019 - Science and Nerds\" \/>\n<meta property=\"og:description\" content=\"Source: Apple has settled its lawsuit with Chicago over the city\u2019s so-called \u201cNetflix tax,\u201d according to a report from The Hollywood Reporter. The tax placed a 9 percent levy on \u201camusements that are delivered electronically\u201d \u2014 essentially targeting streaming services. The exact terms of the settlement weren\u2019t made public. 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\n

Apple has settled its lawsuit with Chicago over the city\u2019s so-called \u201cNetflix tax,\u201d according to a report from The Hollywood Reporter<\/em><\/a>. The tax placed a 9 percent levy on \u201camusements that are delivered electronically\u201d \u2014 essentially targeting streaming services.<\/p>\n
The exact terms of the settlement weren\u2019t made public. Though, Bloomberg Tax<\/em><\/a> last year reported that revenues from the tax \u2014 widely thought to be the first of its kind \u2014 grew to over $30 million in the year ending June 30th, 2021. <\/p>\n
The decision has been a long time coming. Chicago introduced the new tax in 2015<\/a> 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. Others that raised legal challenges included Sony Interactive Entertainment, video game trade association the Entertainment Software Association (ESA), and an advocacy group representing Netflix, Hulu, and Spotify.<\/p>\n
\nThe tax covers \u201camusements that are delivered electronically\u201d<\/q><\/aside>\n<\/div>\nThe number of objections facing the tax led to delays in Apple\u2019s suit against the city. 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 (and not overturned on appeal), or settled, or dropped. Last week, a judge dismissed Apple\u2019s amended complaint, which alleged that the tax is unconstitutional. Apple chose not to refile, according to The Hollywood Reporter<\/em>.<\/p>\n
Although revenues from the \u201cNetflix tax\u201d are just a small fraction of the city\u2019s roughly $1.5 billion tax income, Bloomberg<\/em> Tax<\/em> notes that revenue has roughly tripled over the past five years. The tax brought in $9.4 million in its first full year in 2017, rising to $28.8 million in 2020, and $31.2 million 2021 from the 47 businesses registered under the rules. In contrast, much of the city\u2019s other local business taxes were hit hard when the pandemic forced the closure of physical locations.<\/p>\n<\/div>\n

<\/br><\/code><\/p>\nSource: https:\/\/www.theverge.com\/2022\/7\/25\/23276987\/apple-chicago-city-netflix-tax-lawsuit-settled<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"
Source: Apple has settled its lawsuit with Chicago over the city\u2019s so-called \u201cNetflix tax,\u201d according to a report from The Hollywood Reporter. The tax placed a 9 percent levy on \u201camusements that are delivered electronically\u201d \u2014 essentially targeting streaming services. The exact terms of the settlement weren\u2019t made public. Though, Bloomberg Tax last year reported […]<\/p>\n","protected":false},"author":1,"featured_media":10734,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"pagelayer_contact_templates":[],"_pagelayer_content":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[14,8],"tags":[9],"class_list":["post-10733","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-apple","category-technology","tag-apple"],"yoast_head":"\nApple settles lawsuit against Chicago\u2019s \u2018Netflix Tax\u2019 - Science and Nerds<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/scienceandnerds.com\/2022\/07\/25\/apple-settles-lawsuit-against-chicagos-netflix-tax\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Apple settles lawsuit against Chicago\u2019s \u2018Netflix Tax\u2019 - Science and Nerds\" \/>\n<meta property=\"og:description\" content=\"Source: Apple has settled its lawsuit with Chicago over the city\u2019s so-called \u201cNetflix tax,\u201d according to a report from The Hollywood Reporter. 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The tax placed a 9 percent levy on \u201camusements that are delivered electronically\u201d \u2014 essentially targeting streaming services. The exact terms of the settlement weren\u2019t made public. 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