PlayStation Users Pay Amusement Tax to Chicago Now, Seriously
It is a fine time to live in Chicago Illinois, a city usually better known for their gun related violence. They are now aiming, no pun intended, for a new goal, this time for charging their citizens to enjoy anything entertainment related. This is nothing new as the “Amusement Tax” was first introduced in 1993 according to USLega.com’s website. Now PlayStation owners are the latest to join the taxation B.S. of Chicago Illinois.
This tax has already impacted users of Netflix, since 2015 according to Arstechnica. Steam is also taxed similarly in the city of Chicago.
As of November 14th, PlayStation users will see the tax levied against their purchases online. This includes all things PlayStation from PlayStation Network purchases to PlayStation Vue and other services under the PlayStation banner. According to OneAngryGamer.net, Xbox Live users have been paying this tax since last year.
The Amusement Tax will add 9% to purchases which is quite ridiculous. Keep in mind, Chicago already levies a 10.25% sales tax for purchases online, a tax reach that was expanded earlier this year, beginning October 1st. That means nearly 20% in taxes to be “amused” within the city limits of Chicago.
This tax has not been introduced/modified without opposition. Earlier this year the Circuit Court of Cook County, where Chicago is located, upheld the Amusement Tax stating the tax did not violate Chicago’s “home rule authority”. The Circuit Court also dismissed a similar lawsuit from the Entertainment Software Association (ESA) against the city of Chicago regarding the Amusement Tax.
Basically, states and cities are going to do whatever they have to do to get the tax revenue they feel they have a right to collect. It is not right in my eyes but what can you do when the courts dismiss any challenges?
For those that wish to read the Amusement Tax (7510) in its entirety, please visit the City of Chicago website.
Add another 5 and you'll have the standard Swedish sales tax :) Then you can add some more for hidden taxes , suggesting a "possibility for copying of content"-tax and "a bad chemicals in product"-tax. Oh dear.
This is complete insanity this could never happen in Canada
I’m not a “taxation is theft” kinda guy... but those rates are highway robbery!
Exactly. This is double dipping to me. They charge not only a sales tax on purchases made online but now a special "amusement tax" on top of that for a total of nearly 20%. How is that right or fair?
I can understand the initial sales tax, that supposedly levels the playfield for businesses operating physical locations in the city limits.
The amusement tax is just robbery. Plain and simple.