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David Hughes Provides Insight on Apple Challenging Chicago Tax on Streaming Services to State Tax Notes

State Tax Notes 08/31/2018

An article published by State Tax Notes discusses the expansion of Chicago's amusement tax to music streaming services. Apple Inc. filed a complaint in an Illinois circuit court saying it is unconstitutional and violates the Internet Tax Freedom Act (ITFA).

Apple's complaint was similar to Labell, which is currently pending on appeal, and raised a number of identical arguments. State and Local Tax Attorney, David Hughes, stated "Apple, unless they can distinguish themselves, is going to remain behind Labell." He said Apple could be trying to protect itself with an injunction so the company would not be required to collect the tax while Labell is pending, because the tax could potentially be declared invalid.

The full article, "Apple Challenges Chicago Tax on Streaming Services," was written by Andrea Muse and published by State Tax Notes on August 30, 2018 for its subscribers.

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