Chicago Mayor Brandon Johnson and the city council have both discussed the above-expected revenues generated by the City’s Social Media Amusement and Responsibility Tax this week.
The city of Chicago faces an ongoing lawsuit over a tax ordinance on social media platforms that was imposed four months ago, but city officials, including Johnson, said this week they have confidence in its legality and benefit to the city.
The millions of dollars in revenue has yet to be counted toward the city’s budget however. The stated reason is because the measure is being challenged in court, according to city officials.
A similar policy that passed through the Illinois General Assembly in May seeks to tax the platforms statewide.
Gov. J.B. Pritzker defended the measure’s inclusion toward the projected tax base in the coming year’s budget to members of the media Tuesday.
Johnson announced Tuesday that the tax is now projected to bring in $49.2 million, rather than the previous $31 million expected to be brought in during 2026.
NetChoice, a trades group representing industry giants like Meta and X, filed a lawsuit against Chicago in March on the grounds that the city isn’t allowed to place an amusement tax on the companies.
Story from Illinois Radio Network
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