Chicago charges 9 percent tax on PlayStation Plus

Sony warns PlayStation owners in Chicago. The city will charge an Amusement Tax on renting entertainment products from November 14. This also includes a subscription to PlayStation Plus.

The Entertainment Tax, popularly referred to as the cloud tax, only applies to the city of Chicago. As of November 14, residents of the city will pay a nine percent tax for renting entertainment products. The arrangement is explained broadly by the city council, because Sony warns owners of a PlayStation that a subscription to services such as PlayStation Plus also falls under this. However, buying games is not covered by the new regulation. Buying games from the PlayStation Store is therefore also tax-free.

The Entertainment Tax imposed by Chicago is the first of its kind in the US. Sony, along with companies such as Netflix and Spotify, is complying with the regulations and withholding the tax. Other companies oppose the scheme. For example, Apple is challenging the Entertainment Tax. It is expected that Nintendo, Microsoft and Valve will also have to collect the tax.