According to the Chicago Sun Times, Chicago’s Mayor is planning to raise the city’s amusement tax from 8 percent to 9 percent. That hike includes a proposal to broaden the amusement tax umbrella to include “direct-to-home satellite service.” The city hopes to shore up a 9 million budget gap by forcing the tax (which cable customers already pay) on Dish Network and DirecTV customers. According to DirecTV, “federal law prevents cities from taxing direct broadcast satellite services.” The city claims they’re on solid legal ground, and that satellite customers should have to pay the same taxes as cable users.
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