ESA recently filed a lawsuit challenging Chicago’s expansion of its Amusement Tax, which charges Chicago residents a 9% tax on online streaming and some video game experiences.
If you buy a game on disc in a Chicago store, no Amusement Tax applies. But streaming that same game title, as part of an online service, would be subject to the tax. This is a violation of the Internet Tax Freedom Act, which bars federal, state and local governments from discriminating against e-commerce.
ESA believes in the 21st century consumers should not face barriers to enjoying the interactive content they want.