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Chicago Department of Finance addresses sales taxation of cloud computing transactions

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The Chicago Department of Finance issued two rulings on June 9 that expand the city’s ability to tax cloud-based products and services. First, an amusement tax ruling extends the tax to electronically delivered entertainment. Also, a personal property lease transaction tax (lease tax) ruling extends the tax to certain specified computer products and services. Both tax rulings are effective July 1, 2015, but the department will limit the effect of the rulings to periods on and after Sept. 1, 2015, to allow businesses sufficient time to make required system changes. Effective Jan. 1, 2015, the amusement tax and lease tax both are imposed at a rate of 9%.

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