Chapters 3-32 and 4-156 of the Municipal Code of Chicago impose tax on personal property leases and amusement transactions, respectively. Taxand USA explores the matter to date.
The laws were broadly drafted, but significant technological advancements since the effective date of these chapters have further broadened their scopes.
The taxability of electronic commerce and cloud computing is still an evolving issue with many states. As a matter of fact, Illinois does not tax cloud computing, but Chicago’s home rule authority allows it to tax cloud computing transactions.
On 9 June 2015, the City of Chicago Department of Finance issued two rulings addressing the city’s:
These rulings were primarily intended to clarify Chicago’s ordinances as applied to cloud computing and electronically delivered amusements.
Discover more: Chicago update: cloud computing & electronically delivered amusements
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Companies should regularly monitor legislative changes to keep abreast of updates in the ever-evolving taxation of electronic commerce.
