Taxes are crucial for the state or government enforcement to function. The people are levied with various types of fees and one among them, and an important one is sales tax.
The people purchasing goods have to pay Sales Tax. But, in the recent past, the physical buy out practice is reducing a lot, which in turn in decreasing the tax revenues to the authorities. Keeping in mind, the changing scenario, Chicago city has successfully implemented the online streaming tax. It led to a lot of lawsuits, but that hasn’t stopped the charging.
Sony was the first streaming service to be levied the charges, and now with the number increasing, the rest too will have to bear the same. It is termed as Netflix tax because the target is streaming platforms.
Currently, only the Chicago city is charging taxes for streaming services, but more cities are likely to take the same approach as the direct Sales Tax is reducing gradually. The people are going digital and taxes are expected to follow them. A petition challenging the charges is filed, and it is in an appealing stage.
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