tax

PlayStation users in Chicago will be paying a 9% “Amusement Tax” starting November 14

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PlayStation users in Chicago will be paying a 9% "Amusement Tax" starting November 14 1

Sony has confirmed that PlayStation users in Chicago will be subject to the 9% “Amusement Tax.” Starting on November 14, the tax will be applicable to purchases of PlayStation Plus, PS Now, PS Vue, PS Music, PS VOD, and PS Video Live Events. The tax is also called the “Hamilton Tax” after its effect over the musical Hamilton, a Broadway musical, which is also taxed in Chicago.

Sony began enforcing local tax policies on PSN since 2016 and local taxes can affect literally any purchase you make depending on the current city’s situation and conditions.

What this means is that users in Chicago will have to pay an additional 9% on all cloud services- including a PS Plus subscription, which will run it at about $5 more than other states in the US. The tax isn’t popular in the city of Chicago, but Mayor Rahm Emanuel says that they’re necessary for the city’s pensions. Other companies like Netflix and even Xbox are all subject to the tax. Netflix has already raised prices in Chicago in order to negate the tax for their profit margins.

Sony has joined the tax group alongside other giants and will start collecting taxes from gamers tomorrow. Some companies like Apple are taking action against the city for the taxes saying it’s unconstitutional and a violated of the Internet Tax Freedom Act of 1998 which prohibits counties, states, and municipalities from adding taxes on electronic commerce.

Sony doesn’t seem to be fighting the tax at this point and PlayStation gamers will now be subject to the same tax as other amusement activities until changes are made (if any).

At this point, only Chicago is subject to the cloud tax. No other city has been reported to be enforcing such a tax. Speculation says that this local tax could affect New York City.

Rhode Island could be charging a 10% tax on violent videogames

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RI game tax for violet videogames.

All games that are rated “M” or above may now soon get a 10% “violence tax” for all gamers in Rhode Island.

What do you think about that? What’s this world coming to?

A Rhode Island legislator announced that he plans to introduce legislation that taxes violent videogames. An additional 10% tax would be placed on games that are rated “M” or higher by the ESRB.

Of course, the publisher doesn’t pay for this- the consumer in RI does.

State Representative Robert Nardolillo III (R-Dist.28, Coventry) plans to use the generated tax revenue to improve school counseling programs.

He states:

“Our goal is to make every school in Rhode Island a safe and calm place for students to learn. By offering children resources to manage their aggression today, we can ensure a more peaceful tomorrow,” said Rep. Nardolillo’s press release.

He also states that states can’t ban violent games to minors. The state of California has already enacted a law that allows the state to ban sales of M-rated games to minors and additional labels beyond the traditional ESRB ratings.

But then the Supreme Court later repealed that law stating that videogames are protected by the First Amendment, so the ban was lifted. So instead of banning them, he wants to tax them- probably the next best thing.

There is currently no text for the proposal and is still be drafted by legal counsel at this time.

There will a lot of opposition not just from gamers, but probably also the Entertainment Merchant’s Association, game developers, publishers, and even the court. You can tell this is just another internet meme in the making.

What do you think? Is this justified or ridiculous?

Image via Wikimedia Commons.