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Chicago taxes cloud and streaming services

Brandon Butler | July 3, 2015
The City of Chicago has implemented sweeping new tax regulations that target the use of streaming and cloud computing services, the law firm ReedSmith says.

ReedSmith lawyers also question whether these new taxes comply with various state and national tax laws, including the Internet Tax Freedom provisions outlined in the Federal Telecommunication Act.

"The rulings gloss over many details of applicable federal law and how telecommunications and computer networks operate, and assume the simplest factual scenarios that do not realistically comport with how many providers and their customers transact business."

The regulations could spark a new debate about exactly how cloud and streaming services are taxed not just in Chicago, but around the country.  


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