How will the “cloud tax” affect Chicago tech start-ups?

Pinch Hitters

Mayor Rahm Emanuel at 1871, an entrepreneurial hub for digital startups. (Michael Tercha/ Chicago Tribune).

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Chicago magazine’s Adrienne Hurst joins Mike Stephen (in for Nick Digilio) to discuss the recent changes to two city levies the resulted in the “cloud tax,” a tax on “electronically delivered amusements” like streamed data services (Netflix, Spotify, etc.).  Also covered in the new tax is “nonposessory computer leases” on services such as Dropbox, Google Docs, or research databases like LexisNexis, which could amount to a significant cost to Chicago’s tech entrepreneurs.

In her piece for the magazine, Hurst details how the mayor’s office plans to lessen the possible blow to the city’s digital startups, which was a booming sector in 2014.


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