The American media streaming service provider, Netflix, would soon prove to be costly. Netflix news reported that the subscribers of a number of services would now be charged a cloud tax worth 9%. These services include Amazon Web services and Netflix. The rules, which have been applied today, were introduced after the city authorities extended the application of property lease taxes and amusement to include cloud based technologies.
The introduced taxes would also affect platform. Netflix news today informed that the officials would determine whether a company has been paying 9% tax on those services. It has responded by adding the new tax to the bills of the city’s users. The amendment has been carried out at a time when the local authorities have suffered from a reduction in sales tax revenue from main street stores.
Mayoral spokeswoman Elizabeth Langsdorf has stated that in an environment in which technologies and emerging businesses grow quickly, the city issues rulings that explain the means by which laws are applied to them.
Netflix breaking news affirmed that the city has previously never issued controlled digital access to entertainment. It is expected that the charge would affect the fares of games, music, videos, movies, and shows. A lease tax would also be charged on financial products and cloud computing. Press sources highlighted that the introduced deduction would target customers whose residential or commercial street is in the Chicago region.
Attorney Michael Wynne has stated that the authorities of other American cities have not enacted such a tax. The residents of New York need to pay separate taxes for amusement and information services. An official of ‘Taxpayers United of America’ has stated, “We’re definitely opposed to a 9% additional tax and this kind of just goes back to what we’ve been seeing recently with the ongoing pension crisis. The city is looking to expand the tax base in any way, even if that means pushing out more Chicagoans over time.”
Market experts expect that the latest taxing mechanism would not only cut down Netflix’s customers, but also adversely affect the reputation of the decision makers. It is probable that administrations of other cities would also follow the footsteps of their counterparts in Chicago.
The streaming giant’s customers also need to pay a similar tax in Australia. Corporate executives should now launch their plans to disseminate the details of the governmental initiative in the best possible manner to address the grievances of the service’s subscribers.