Apple Avoids Back ‘Netflix Taxes’ Owed to Chicago in Settlement

Apple Inc. will begin collecting Chicago’s tax on streaming entertainment services on Sept. 15, ending a legal challenge that asserted the first-of-its-kind municipal tax violates the US Constitution and the federal Internet Tax Freedom Act.

After four years of litigation, the tech giant quietly surrendered to Chicago last month in a dispute over its duties under Amusement Tax Ruling No. 5, often referred to as the “Netflix tax.” The 2015 revenue program imposes a 9% levy on streaming music, video and gaming services. Terms of the settlement weren’t disclosed, with the parties stipulating in Cook County Circuit Court to ...