EAST DUNDEE, Ill. — East Dundee has become the first smaller Chicago suburb to implement a tax on streaming services.
On Monday, village trustees voted 4-2 to apply a 5% local amusement tax to all residents’ potential streaming services. For a monthly Netflix standard subscription, the tax would be $0.77. But if you have multiple services like Apple TV or Amazon Prime, residents will be taxed separately for each one.
“I can’t imagine, it’s a huge amount of money, I would question putting that kind of a tax on people because the residents are already paying for the service,” said business owner and former Mayor Lael Miller. “Now, they’d have to pay a tax on it for the village.”
Chicago passed a similar amusement tax in 2015, charging 9% on streaming services. In 2020, Evanston followed suit. Officials said they receive about $50,000 a month from it. In 2021, Chicago raised $37,193,927 from the tax — up from $29,625,536 in 2020.
East Dundee officials claim the village has lost tax revenue from so many people dropping cable.
They expect the tax will generate $25,000 in the first year and grow as more residents drop cable. Around 3,200 people live in East Dundee.