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As of November 14, 2018, the PlayStation Store will collect Chicago City Entertainment Tax on receipts from PS Plus, PS Now, PS View, PS Music, PS Video on Demand and PS Video Live Events from customers with Chicago billing address.
Many people already know the tax (also known as the "cloud" or "streaming" tax), as it is being prosecuted by various companies and organizations, including Apple, Netflix and the Entertainment Software Association. The Liberty Justice Center also filed a lawsuit against the tax, claiming it was discriminatory because it did not apply to shows and entertainment machines.
While legal proceedings are underway, Sony has reached an agreement with the authorities and will start collecting the aforementioned tax (the current rate is 9%) as of next week.
The development naturally disturbed the players. This alarmed the Liberty Justice Center.
"We believe the city does not have the constitutional right to do so," said lead counsel Jeffrey Schwab. "They do not tax according to whether someone uses it or not [the streaming services] in Chicago, but if they had a billing address in Chicago. "
While Apple and many others continue to fight the tax, PlayStation will join Netflix, Spotify, Hulu and Pandora to recover.
[Source:CBS[Source:CBS[Source:CBS[Source:CBSDavid Lee Matthews (Twitter)]
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