To The Moon

Apple to start collecting 'Netflix tax' in Chicago next month: report

Last month, Apple (NASDAQ:AAPL) settled its lawsuit against Chicago over the city's so-called "Netflix tax" and now the tech giant will start collecting the tax, starting September 15, Bloomberg reported.

The news outlet notes that Apple (AAPL) had challenged that the municipal tax - enacted in 2015 to collect a 9% levy on streaming music, video and gaming services - violated the U.S. Constitution and the Internet Tax Freedom Act.

However, the lawsuit was settled and the case was "dismissed with prejudice and without costs to either party." The lawsuit was settled in late July, according to previous media reports.

Bloomberg obtained settlement documents that show Apple (AAPL) will collect a tax on all of its streaming services for Chicago-based customers, except for Apple News+.

The news outlet also noted that Apple (AAPL) is not responsible for collecting back taxes, which could have amounted to perhaps millions of dollars.

Apple (AAPL) shares closed down fractionally on Wednesday, finishing at $173.03.

As Apple (AAPL) searches for new ways to generate revenue, it is "likely" to include advertising in apps such as Apple Maps, Apple TV+, Apple Books and more, according to recent media reports.

$Apple(AAPL)$$Nasdaq 100 Trust(QQQ)$$SPDR S&P 500 ETF Trust(SPY)$View on SPDR S&P 500 ETF Trust(SPY)BullishBearish