Chicago collects $2 million in ‘Netflix tax’ to bolster city coffers, other cities and states could follow

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Chicago collects $2 million in ‘Netflix tax’ to bolster city coffers, other cities and states could follow
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Chicago is believed to be the first major city in the country to collect taxes from online streaming services.

The city of Chicago has become a pioneer in collecting tax revenue from digital entertainment like streaming videos and gaming.

The U.S. Supreme Court last summer cleared a path for states to collect sales tax from online shoppers, ending a decades-old law that affected online sales. The court said in the South Dakota vs. Wayfair case that"the internet's prevalence and power have changed the dynamics of the national economy," according to a CBS News report.

"Cities and states are beginning to experiment with this," Mazur told CBS News."People are buying more and more services and less goods, so the sales tax pace is getting reduced, and you end up trying to find ways to raise revenue from services.”

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