The East Dundee Village Board has approved a 5% amusement tax on streaming services like Netflix and Amazon Prime, making it one of the first northwest suburbs to add the entertainment fee.
“Currently, if you have a cable package, traditional cable, you would pay a tax on that the village receives,” Village Administrator Erika Storlie said at Monday night’s board meeting.
Cable tax revenues, which are also 5%, generate a significant amount of money to East Dundee revenues, Storlie said. [Most read] A Chicago Heights man mailed a holiday check for $10. He later found out it was altered to a different name and cashed for $9,500.Chicago started collecting a 9% streaming service fee in 2015, a move that was unsuccessfully fought in court by Apple. A Cook County judge recently dismissed Apple’s efforts to overturn the ruling allowing the tax.
“This is one of those items where the taxes have to catch up with the technology,” Village Attorney Lance Malina said. “Internet purchases for a long time went completely untaxed.” Now, those purchases are taxed like purchases at brick-and-mortar stores have always been, he said.Despite support from the board majority and village staff, Trustees Scott Kunze and Rich Treiber voted against the measure.
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