Chicago Cloud Computing, Streaming Taxes Seen as Aggressive, Vulnerable to Challenge

State and local tax practitioners are expecting legal challenges to two Chicago Department of Finance rulings that took effect July 1, representing an expansive and aggressive effort to tax cloud computing and streaming entertainment services for music, movies and gaming.

Tax attorneys told Bloomberg BNA July 2 Chicago has imposed one of the broadest tax programs in the nation aimed at the wide range of online services used daily by businesses and consumers. Chicago’s approach, however, raises significant questions for both the providers of those services, including the biggest names in cloud computing and entertainment, and end users located in ...