The Village of Wheeling, IL has officially adopted a new 4% Streaming Amusement Tax, effective January 1, 2026. This ordinance updates the Village’s existing amusement tax code to include video streaming, audio streaming, and remotely accessed online gaming services—reflecting a growing trend among suburban municipalities as traditional cable revenues continue to decline.

The measure was approved on December 1, 2025, and codified under Title 4, Chapter 4.96.5 of the Wheeling Municipal Code. As residents increasingly choose subscription-based digital entertainment over cable television, Wheeling joins other Illinois communities in modernizing its revenue models to ensure continued funding for public services.

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What the 4% Streaming Amusement Tax Covers

Under Wheeling’s new ordinance, the tax applies to any fee or charge for the privilege to access or subscribe to a streaming amusement. This includes:

• Video streaming platforms (e.g., Netflix, Hulu, Disney+, YouTube TV)
• Audio streaming services (e.g., Spotify, Apple Music, Pandora)
• Online games accessed remotely through subscription or rental models

The tax applies when the billing address is located within the Village of Wheeling. For streaming delivered to mobile devices, sourcing must follow the Illinois Mobile Telecommunications Sourcing Conformity Act, ensuring accurate assignment of taxable customers.

Read the Board Packet Submission which was Approved by Wheeling Officials on 12/1/25

What Is Not Taxed

The ordinance clearly states that the 4% tax does not apply to:

• Transactions granting permanent ownership of digital media
• Not-for-profit organizations exempt under IRS Section 501(c)
• School districts
• Governmental entities
• Cable or video services already regulated and taxed under Illinois state statutes

How the Tax Will Be Collected

The responsibility for collecting and remitting the tax falls on the streaming service provider (“taxpayer”). Providers must:

• Collect the 4% tax from Wheeling customers at the time of billing
• File a sworn monthly Streaming Amusement Tax Return
• Submit payment to the Village within 20 days following each month’s end
• Maintain complete financial records, accessible for audit either in-person or remotely

If a Village audit reveals a discrepancy of 5% or more, the provider must reimburse the Village for the cost of the inspection.

Penalties and Enforcement

Penalties under Wheeling’s ordinance mirror those applied to other local amusement taxes:

• Interest accrues after 10 days at the rate defined in Section 4.96.070(c)
• Additional penalties may be applied for late filing or late payment
• Each day of non-compliance is treated as a separate offense
• The Village Attorney may bring legal action to enforce unpaid tax obligations

Provider Registration Requirement

Any company offering taxable streaming services to Wheeling residents must:

• Register with the Village as a tax collector within 30 days of beginning service or 30 days after the ordinance takes effect
• Provide all information required for proper administration, reporting, and auditing of the tax

How Arlington Heights Compares

Arlington Heights, located just south of Wheeling, passed its own 5% Streaming Amusement Tax earlier in 2025, projecting approximately $480,000 in annual revenue to support the Village’s expansion of its emergency ambulance services. Their ordinance also applies to video streaming, audio streaming, and online gaming subscriptions, and requires providers to file monthly returns and maintain auditable records.

Both municipalities exempt permanent digital purchases, nonprofits, school districts, and governmental bodies. Penalty structures and enforcement authority are also similar, signaling a coordinated regional approach to digital service taxation.

A Growing Regional Trend

As suburban communities see cable franchise fee revenues drop—from over $5 million annually in some suburbs to nearly half that amount—streaming taxes are becoming a logical evolution of local tax policy. The shift reflects the reality that digital entertainment services rely on local infrastructure and generate significant consumer spending within municipal boundaries.

LocalSuburbs.com: Keeping Residents Informed

At LocalSuburbs.com, our mission is to keep the community informed and connected as local policies evolve. We will continue monitoring updates from Wheeling, Arlington Heights, and other suburbs as municipalities adapt their tax structures to reflect changing digital habits.