from the never-met-a-tax-they-couldn't-hike dept.
TechDirt reports
Back in July we noted how the city of Chicago was hoping to cash in on streaming services by imposing a new tax on Netflix [...] expanding [the city's] 9% "amusement tax" authority (traditionally covering book stores, music stores, ball games, and other brick and mortar entertainment) to cover any service that interacts with the cloud. While the new ruling was supposed to technically take effect September 1, Chicago recently announced it was postponing portions of the new tax until next year to field criticism and manage plan logistics.
While Chicagoans wait, the city's now on the receiving end of a new lawsuit (pdf) by the Liberty Justice Center, which claims that Chicago is violating the law in two ways:
One, the lawsuit claims that the city aldermen violated city rules by not holding a full vote on the changes.
Two, the lawsuit states that Chicago's tax grab also violates the Internet Freedom Tax Act, which prohibits local, state, and federal governments from enacting "internet taxes".
The plaintiffs are quick to note that actually putting the idea to a public vote likely wouldn't end well for the city:
"No aldermen voted on this tax. It never went before the Chicago City Council, which makes the so-called 'Netflix tax' an illegal tax", Jeffrey Schwab, an attorney with the Liberty Justice Center, said in a news release Thursday. "If the city wants to tax Internet-based streaming media services, then it should put the measure through the political process, and let Chicagoans have their voices heard through the democratic process."
(Score: 3, Funny) by frojack on Thursday September 17 2015, @07:37PM
How can it be that a new tax is established when "No aldermen voted on this tax. It never went before the Chicago City Council"
Was it just enacted by the Mayor? (looks up mayor in google.... Ah. That probably answers my question!).
No, you are mistaken. I've always had this sig.
(Score: 0) by Anonymous Coward on Thursday September 17 2015, @07:52PM
He needed a new indoor swimming pool.
(Score: 2) by Gravis on Thursday September 17 2015, @08:00PM
unless cable TV is already getting taxed, you can guarantee that they are the ones that are driving force behind this tax.
(Score: 3, Insightful) by frojack on Thursday September 17 2015, @08:18PM
Whether or not Cable TV is already getting taxed, the cable companies would still want to punish cord cutters.
No, you are mistaken. I've always had this sig.
(Score: 2) by tempest on Thursday September 17 2015, @10:04PM
This round I doubt the cable companies have much to do with it. Clearly Chicago is so desperate to prop up their pension catastrophe that they brainstorm taxes to suck money out of anyone making a profit in their city. Nothing screams "stay the hell away from our city" to new business like inventing absurd random new taxes. At this point even electrons passing through Chicago are fair game.
(Score: 3, Insightful) by M. Baranczak on Thursday September 17 2015, @09:29PM
(Score: 2) by WizardFusion on Friday September 18 2015, @02:09PM
It's not the current buzzword. You have to keep up with the cool kids.
(Score: 2) by Snotnose on Thursday September 17 2015, @11:17PM
"Good"
I came. I saw. I forgot why I came.
(Score: 3, Insightful) by Grishnakh on Friday September 18 2015, @01:51AM
What kind of shitty city places an extra 9% tax on booksellers? Are they trying to promote illiteracy? Holy shit, that's one of the stupidest taxes I've ever heard of. Taxing dumb sports games I can understand, but book and music stores? I guess they really want those places to go out of business and for everyone to buy that stuff from Amazon.
(Score: 2) by cmn32480 on Friday September 18 2015, @02:38AM
Ummm... Chicago?
Think about it. What kind of political system and politicians come out of and run Chicago? I am sure there are a few good eggs, but the vast majority (in larger percentages than elsewhere in the country it seems) seem to be crooked.
"It's a dog eat dog world, and I'm wearing Milkbone underwear" - Norm Peterson
(Score: 2) by deimios on Friday September 18 2015, @03:30AM
They should tax the piratebay! Just think about it: 9% of 0 is still 0, so they get to have their tax while not robbing the people of money! Pure genius!
(Score: 0) by Anonymous Coward on Friday September 18 2015, @07:25AM
And not only that, they can be sued by RIAA/MPAA for making money off of copyright infringement! And since "money" is involved, that's criminal infringement! Odds are they'll up in jail and their replacements will quickly axe the whole idea of the tax and everyone wins!
(Score: 1) by anubi on Friday September 18 2015, @04:43AM
Did you feel shafted by this new tax?
Every few years, the red, white, and blue bunting comes out, and lots of smiling heads appear on placards all over town with the word "VOTE" prominently displayed.
This will be an ideal time to remember them.
"Prove all things; hold fast that which is good." [KJV: I Thessalonians 5:21]