Arlington Heights Streaming Tax Effective from 2026

Arlington Heights Considers Streaming Tax for 2026

The village of Arlington Heights, Illinois is mulling over a proposal to introduce a tax on internet streaming services. Officials are thinking about a 5% streaming tax, the same rate currently applied to cable franchises. In a letter from the village manager to the village board president and trustees last November, it was pointed out that many residents have transitioned to internet streaming services instead of traditional cable or premium channels. The village manager emphasized that even though internet streaming services use public right-of-way cable lines or repeaters to deliver content, the village stands to gain about $500,000 in revenue from this tax. The funds collected from the streaming tax will be dedicated to supporting a new full-time 5th ambulance service, expected to launch in 2026 as per the letter. The village manager also suggested the possibility of implementing the tax midway through 2025 to determine if the revenue generated will cover all ambulance service costs.

During a recent board meeting, village officials voiced concerns about significant revenue losses due to cord cutting. The proposed tax would impact subscribers to popular services like Netflix, Prime Video, Disney Plus, Peacock, Hulu, and YouTube TV. According to the Daily Herald, subscriptions with commercials may face a lower tax rate compared to ad-free subscriptions.