Skokie to Increase Taxes on Streaming Services and Live Entertainment Shows

Skokie residents, get ready to see changes in your entertainment expenses! The Village Board recently discussed a new ordinance that will introduce a 5% tax on popular digital streaming platforms like Netflix, Disney+, Spotify, and Apple Music. This means your favorite TV shows and music may come with a slightly higher price tag.

Not only that, but the village’s entertainment tax, known as the amusement tax, is also expected to increase from 2% to 5%. This tax will apply to admission costs for theater performances, shows, sports events, and other in-person entertainment options.

The reason behind this tax hike? Skokie plans to use the additional funds to provide essential services, including a new ambulance during peak hours and additional permitting and inspection services.

Skokie’s finance director, Julian Prendi, explained that the average household with a $60 monthly streaming subscription could expect to pay around an extra $3 per month, or $36 per year. Don’t worry, these changes are aimed at enhancing services and ensuring the village can continue to provide for its residents.

If approved, residents could start seeing these changes on their bills as early as August 1, after the next Village Board meeting on June 1. It’s important to note that this new tax will not affect essential services like garbage collection, but rather, it’s an added surcharge on non-essential, leisurely activities.

While these changes may impact your budget slightly, it’s good to know that Skokie’s rates will still be below the average in neighboring municipalities. By introducing these taxes, Skokie is following the lead of other cities like Evanston and Chicago, who have already implemented similar taxes on streaming services.

So, the next time you settle in for a Netflix binge or head out for a live show, keep in mind that these new taxes are helping to improve services and support the community in Skokie.