Amusement exemption application see instructions on reverse. In chicago, the entertainment tax is known as the amusement tax. Cook county goes after small venues for back taxes, arguing their bookings dont count as live music or culture. Amusement tax exemption application city of chicago department of finance 333 south state street suite 300 chicago, illinois 606043977 attn. Chicagos streaming tax is a bad tax but its not a netflix tax. Chicago issues rulings on amusement tax and personal property lease transaction tax. Mayor rahm emanuels proposed increase in the citys amusement tax is. Artist registry for west chicago artists auctioneer application. Section 4156020 of the chicago municipal code imposes a tax upon the patrons of every amusement within the city.
Dec 12, 2018 amusement tax 7510 applies to owners, managers, or operators of amusements or of venues where amusements are being held, and resellers of tickets for amusements. On june 9, 2015, the city of chicago department of finance issued two rulings addressing the citys 1 personal property lease transaction tax and 2 amusement tax. Sales exempt from the illinois retailers occupation tax are also exempt from the restaurant tax. City of chicago to get more revenue from amusement tax in fy2014 february 20, 2014 one of these revenue enhancements was a reduction in the cap on the partial exemption of the amusement tax that is issued to cable television providers. Section 74 392 c provides that all applications for exemption of amusement tax must be received by the department 45 days prior to the date of the event. Chicago issues rulings on amusement tax and personal property.
Nov 08, 2018 chicago cbsnetflix, pandora, spotify those are just some of the streaming services chicagoans already get taxed on as part of the citys amusement tax. Chicago sued over amusement tax on streaming services. The latest in rahms onslaught of tax hikes is the extension of the amusement services tax to the digital marketplace. New yorkers are charged an extra 12 cents to download the game angry birds. Business owners, andor their legal representatives, may apply for city of chicago business licenses, renew business licenses, file tax returns, and make tax payments online. Chicago teams speak out against plans to increase concert tax. Amusement tax 7510 applies to owners, managers, or operators of amusements or of venues where amusements are being held, and resellers of tickets for amusements. City of chicago sued over netflix tax chicagos amusement tax puts a fee on streaming services like netflix, spotify. Chicago residents are no strangers to having to pay more to live within the city and an expansion to the chicago amusement tax will mean residents will have to pay more for things like online games, netflix, and a host of other streaming services. Upcoming video gaming tax has gamers seeing red cbs. For example, school cafeteria food sold to students. If you are unsure if you are operating an event subject to the amusement tax. Chicago implemented a personal property lease transaction tax ppltt and. This opportunity is funded by the copernicus foundation, a 501c3 non profit organization.
Amusement exemption application see instructions on. The rate of amusement tax in effect on the date of the ruling june 9, 2015 is 9%. Chicago implemented a personal property lease transaction tax ppltt and amusement tax. Concerts, sporting events, boat tours and bus tours are taxable forms of amusement. Amusement tax in accordance with section 4156020b5a through 4156020b5g of the chicago amusement tax ordinance, you must submit an amusement tax exemption application at least 30 calendar days prior to the date of the amusement, or 15 calendar days prior to the date that admission tickets to the amusement are. On may 24, 2018, the circuit court of cook county denied a motion for summary judgment claiming the city of chicagos 9% amusement tax on certain electronicallydelivered amusements violates the internet tax freedom act, the commerce clause, the uniformity clause.
Sep 11, 2015 city of chicago sued over netflix tax chicagos amusement tax puts a fee on streaming services like netflix, spotify. Pursuant to the act, stubhub informs its sellers of their tax obligations. An amusement entertainment tax is imposed by the city of chicago upon business and residential patrons of every amusement within the city. In march 2009, the rajasthan government started levying an entertainment tax of 23. The rationale of chicagos interpretation is further called into question when considering that actual downloads of movies and music are exempt. Any requests for information andor communication in connection with the citys tax collection efforts will made. This tax is imposed on the admission fee charged for attending any amusement in philadelphia. Your bill is about to go up 9 percent starting july 1, citys amusement tax ruling takes effect. Amusement tax subscribers to paid television programing 7511 applies to businesses who subscribe to paid programming in chicago whose providers do not collect the 9%. Chicago cbsnetflix, pandora, spotify those are just some of the streaming services chicagoans already get taxed on as part of the citys amusement tax.
Boards and commissions application submit online boards and commissions application esp submit online boards and commissions application mail or fax. The chicago department of finance has issued rulings regarding the citys amusement tax and the personal property lease transaction tax that clarify when electronically delivered amusements or services will be subject to the amusement tax or transaction tax. These rulings were primarily intended to clarify chicagos ordinances as applied to cloud computing and electronically delivered amusements. An organization representing video games makers is suing the city of chicago for its 2015 interpretation of the longstanding amusement tax, which applies a 9. Oct 15, 2011 pursuant to the act, stubhub informs its sellers of their tax obligations.
View, download and print amusement tax exemption notification city of chicago department of revenue pdf template or form online. According to the amusement tax ruling 5, the amusement tax does not apply to sales of shows, movies, videos, music or games normally accomplished by a permanent download. Downloadable tax forms finance department village of. A tax alert released on july 7, 2015 below summarizes two rulings issued by the city of chicago department of finance. Chicago personal property lease transaction tax and amusement. It reveals that, effective july 1, 2015, an amusement tax is imposed on any paid television programming. The expanded amusement tax would lead chicago residents to pay an additional 9 percent tax on streaming and subscription services including online game communities, specific online games, and. Terms and conditions click to download full terms and conditions for psls a purchaser of a psl may be subject to city of chicago amusement tax based on the purchase price paid for the psl and other factors determined by the city. Jun 19, 2018 on may 24, 2018, the circuit court of cook county upheld the city of chicagos imposition of its amusement tax on streaming services. Chicagos netflix tax is wasting good policy bandwidth. Chicago is about to become a little less welcoming to cord cutters, with the city authorizing an amusement tax on online streaming services like netflix and pandora. The copernicus foundation is proud to provide scholarships to college, university, or trade school students of polish descent. Chicago adds amusement tax to services like netflix and hulu.
In 2015, chicago expanded its 9% amusement tax to reach amusements that are delivered electronically. Amusements include any concerts, movies, athletic contests, night clubs, and convention shows for which admission is charged. Download the eventbrite app for ios download the eventbrite organizer app. City of chicago amusement tax exemption application. Because the amusement tax is imposed on the patron, and applies only to activity i. In general, section 4156020a of the chicago municipal code code imposes a tax upon the patrons of every amusement within the city the amusement tax or tax. In september, 2019, an illinois appellate court held in labell v.
In a recent oped for townhall, americans for tax reform associate tim wilt exposes the nickel and dime tax policy being employed by chicago mayor rahm emanuel. Amusement includes any paid television programming whether transmitted by wire, cable, fiber optics, laser, microwave, radio, satellite, or similar means. In addition, the department will waive liability for periods before july 1, 2015, including amusement tax, interest, and penalties. City of chicago tax on streaming services survives challenge. That means if your billing address is within city limits, you will be forced to pay a 9% tax for services like netflix, spotify, and xbox. Chicago lease and amusement taxes expanded to additional. The tax is imposed on the selling price of all food and beverages sold at retail by the place for eating. City of chicago that the new streaming tax complied with the.
Chicagos netflix tax is wasting good policy bandwidth tax. Jun 06, 2017 an organization representing video games makers is suing the city of chicago for its 2015 interpretation of the longstanding amusement tax, which applies a 9 percent fee to streaming entertainment. If you need any additional information please contact the finance department at 309 4342233. In 2006, chicago again amended its amusement tax to require that the tax not only be paid by resellers, but also by. Major video game group sues chicago over online game tax. Amusement exemption application instructions new filing period. Tax application and affidavit forms city of chicago.
Mar 24, 2020 the subject of this litigation is the citys application of the tax chicago amusement tax the ruling cites the primary use exemption, exempting from tax. May 30, 2018 on may 24, 2018, the circuit court of cook county upheld the city of chicagos imposition of its amusement tax on streaming services. On june 9, 2015, the chicago department of finance issued a ruling indicating that electronically delivered amusements are subject to the amusement tax. Upcoming video gaming tax has gamers seeing red cbs chicago. Dg010302, games streaming electronic download with less than. City of chicago to get more revenue from amusement tax in. The illinois supreme court on wednesday denied a petition brought by seven chicago residents seeking to kill the citys 9% amusement tax on streaming services, leaving in place an appellate court. If you are unsure if you are operating an event subject to the amusement tax, please contact gary michals at 312 6037224 or gary. The restaurant tax is imposed on each place for eating located in the city of chicago.
Chicago has used the amusement tax to take a cut from sporting events, concerts, movies, nightclubs, and more for decades. To receive meal tax exemption, a copy of your current state tax exempt letter must be included with your order. Chicagos 9% personal property lease transaction tax ppltt and. Mayor rahm emanuels proposed increase in the citys amusement tax is nothing but the continued nickelanddiming of. City of chicago expands tax reach to internet services. Additional information about the amnesty program is available here. After mayor rahm emanuel announced his plan to increase the citys amusement tax on concerts at large venues, chicagos professional sports teams and venues got together to declare their strong opposition. Use of this code will apply the chicago amusement tax to all transactions made to. Apr 03, 2020 in 2015, chicago expanded its 9% amusement tax to reach amusements that are delivered electronically. Chicago, illinois understanding tax collection eventbrite help. Stubhub does not have to collect chicago amusement tax. The socalled cloud tax created a flurry of debate in the nonprofit community about its merits and legality, implementation, and most important from your organization. The rulings vastly broaden the taxability of various cloud computing applications and electronic services by reinterpretation of longstanding city statutes. Along with a tax raise on 911 phone calls and ridesharing services, the mayor wants to eliminate the amusement tax.
In response to the evolving covid19 pandemic, the city of chicago has joined the state of illinois in issuing a stay at home order effective saturday, march 21st at 5pm ct. Department of finance amusement tax ruling chicago. The amusement tax does not apply to sales of shows, movies, videos, music or games normally accomplished by a permanent download. Chicago streaming video tax does not violate federal and. Does avalara support chicagos lease tax or amusement tax. The amusement tax for subscribers of paid television programming applies to businesses who subscribe to paid programming in chicago whose providers do not collect the 9% amusement tax. The tax is based on the admission fees or other charges for the privilege to enter, to witness, to view or to participate in the amusement. Chicago personal property lease transaction tax and. Additionally, whereas the chicago ordinance imposes the amusement tax at a rate of 9 percent of the admission fees or other charges paid for. Section 4156010 defines an amusement as including 1 various exhibitions, performances, presentations or shows that a person may witness or. Our new and improved site combines all of your city license and tax needs in one place. Thanks to a fiat administrative declaration by chicagos department of finance, residents are now burdened with a new online amusement services tax. The notification must be filled out completely and filed with the department of finance at least 30 calendar days prior to the date of the amusement, or 15 calendar. Orders received less than ten business days prior will be held for pickup at the group sales window and will not be eligible for complimentary tickets.
Information about the city of bloomingtons amusement tax is available here, including links to the relevant code, registration and remittance forms, and frequently asked questions. Chicago amusement tax will now apply to online games nerd. Chicagos amusement tax is no laughing matter americans. See the city of chicago website for tax details with the exception of sw054002 and sw053002, relevant tax codes apply a 9% tax rate. Eventbrites collection of chicago amusement tax collection also includes the. Tax application and affidavit forms for chicago taxes. The chicago department of finance published an amusement tax ruling on june 30, 2015. Amusement tax chapter 39, article xix amusement tax registration form.
Real estate transfer tax the village of rosemont does not require a transfer tax stamp for real estate transactions. The subject of this litigation is the citys application of the tax chicago amusement tax the ruling cites the primary use exemption, exempting from tax. On may 24, 2018, the circuit court of cook county upheld the city of chicagos imposition of its amusement tax on streaming services. Amusement tax exemption application08242011 chicago. Download this form to apply for a business tax refund. This tax must be collected by all operators of amusement as defined in the ordinance. Mar 15, 2016 on june 9, 2015, the city of chicago department of finance issued two rulings addressing the citys 1 personal property lease transaction tax and 2 amusement tax. In addition, your application will require the cook county board of. Earlier in 2008, the government had reduced the entertainment tax from 40 per cent on net to 30 per cent on net sales. You are responsible for collecting and remitting the amusement tax if you. Downloadable tax forms finance department village of rosemont.
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