Wired
Apple began charging users of services such as Apple TV+ in Chicago with a 9% tax on September 15 this year. As a condition of the settlement, Apple will not have to pay back taxes owed in the past, but it also means that services such as Apple TV+ in Chicago will be charged at a higher price.
Bloomberg News reported that Apple has reached a settlement with the city of Chicago and will start charging users of streaming video services such as Apple TV+ in Chicago with an additional 9% tax starting in mid-September.
This tax originated from the new entertainment tax system implemented by the City of Chicago in 2015, which imposed an additional 9% tax on streaming video services. At that time, Netflix, Spotify and other businesses were affected, including Apple, and it was dubbed the “Netflix tax”. “.
In 2018, Apple filed a lawsuit against the City of Chicago on the grounds that this policy violated the U.S. Federal Internet Tax Freedom Act and the U.S. Constitution on business and due process-related laws, and continued to argue in court for more than two years.
Although Apple subsequently appealed, the court still found that Apple’s appeal was not sufficient, and therefore ruled in favor of the city of Chicago.
In the end, Apple chose to settle with the city of Chicago, and agreed to start charging users of services such as Apple TV+ in Chicago with a 9% tax from September 15 this year. As a condition of the settlement, Apple will not have to pay back taxes owed in the past, but it also means that services such as Apple TV+ in Chicago will be charged at a higher price.