Bloomberg NewsIt is said that Apple has reached a settlement with the city of Chicago and will charge an additional 9% tax to users of streaming video services such as Apple TV+ located in Chicago starting in mid-September.
This tax comes from the city of Chicago'sNew entertainment tax system, an additional 9% tax was imposed on streaming video services, which affected companies including Netflix, Spotify, and Apple, and was jokingly called the "Netflix tax."
In 2018, Apple filed a lawsuit against the city of Chicago, claiming that this policy violated the U.S. Federal Internet Tax Freedom Act and the U.S. Constitution's provisions on commerce and due process, and the dispute continued in court for more than two years.
Although Apple subsequently appealed, the court still determined that Apple's appeal was insufficient and therefore ruled in favor of the city of Chicago.
Ultimately, Apple chose to settle with the city of Chicago and agreed to collect a 9% tax on users of services like Apple TV+ in the city starting September 15th of this year. As a condition of the settlement, Apple will not have to pay back taxes owed, but it also means that Apple TV+ and other services in Chicago will be charged higher prices going forward.
