PlayStation Store Applies Chicago's "Entertainment Tax" on Digital Shopping – Game Rant

The Chicago Fun Tax is not new. The tax was introduced for the first time in the city in 2015, a tax targeting "users" that specifically included digital services. At the time, the scope of the tax was somewhat limited and focused primarily on streaming services such as Netflix and Spotify, but it has since expanded to other services as the legal guidelines of the tax became more established. Sony has so far avoided the tax requirement, although the reasons are poorly known.

If the Chicago amusement tax was not enough to frustrate the citizens of the city, the government of Illinois passed an amendment in 2017 in its budget to extend the effective sales tax of 6.25% to a wider range of online services. It is unclear how the state sales tax has changed PlayStation prices since the adoption of the amendment.

For Chicagoans, it is unlikely that the entertainment tax will disappear or be changed in the near future. But there remains a bit of hope, Apple and Netflix both pursuing justice against the city to oppose the tax of amusement. Apple's lawsuit claims that the entertainment tax violates not only state and US constitutions, but also the Internet Tax Freedom Act 1998, which prohibits all levels of government to tackle taxes exclusively on the Internet.

The current state of Apple's lawsuits is unclear, but given the scale of the lawsuit, it will likely be a long and costly effort. Since the Chicago Entertainment Tax is worth $ 12 million a year, Apple's only recourse may cost more than the tax is worth.

Nevertheless, from November 14th PlayStation Chicago-based console owners will start paying an additional 9% on purchases made through the PlayStation Store.