Cities To Start Taxing Music Entertainment

Featured Image by TaxCredits.net via Flickr

The Hollywood Reporter announced that Chicago will become the first city to enact a tax called a “cloud tax,” which will tax consumers 9 percent for streaming services such as Netflix, Spotify, Pandora, etc. Many cities enact taxes on entertainment services, but Chicago will be the first to apply taxes to digital services.

This tax comes soon after Nevada’s decision to add a 9 percent admission tax to all music events above 15,000 people, which includes the renowned Burning Man festival and Electric Daisy Carnival.

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Photo by Stephanie DeFeo/SolidStares Photography

The reactions to the new taxes have been mixed. Lawmakers claim that they are just simplifying the current entertainment tax and that the new taxes will bring in millions for the city. However, organizers of these events fear that the added costs will drive away business. A $360 ticket for EDC, for example, will now increase by $32. Some concertgoers and streamers do not believe the city has the right to gain a profit from their music entertainment.

These taxes also bring up the possibility that other major cities, such as Philadelphia, will adopt a “cloud” tax as well.

Do you think these taxes are fair, or not really a big deal? Let us know in the comments!

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