Illinoisans may soon have to pay a state tax to stream movies on Netflix, watch satellite TV or listen to music on smart speakers. House Bill 3359 would create the “Video Service Tax Modernization Act” and “Entertainment Tax Fairness Act,” which would impose new taxes on them.
Users would pay a 1% tax “for the privilege to witness, view, or otherwise enjoy the entertainment,” while companies would pay a 5% tax on their gross revenues (but that would most likely mean an increase in the services by the companies paying larger taxes.)
A tax like this is already familiar to Chicagoans as the city currently charges a 9% "amusement tax" which includes online streaming services such as video and music.
There will be a possible vote in the Illinois House today.