AI Taxed In Chicago? ChatGPT Faces Hefty 9% Markup
Portfolio Pulse from AJ Fabino
Chicago's Personal Property Lease Transaction Tax now applies to OpenAI's ChatGPT, adding a 9% tax for users of its premium version. The tax law states that charges incurred for the ability to use a provider’s computer to input, modify, or retrieve data are taxable. This includes AI platforms like ChatGPT, which is backed by Microsoft Corp. The tax has exemptions for small businesses, government bodies, educational institutions, and other entities.
October 04, 2023 | 5:53 pm
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Microsoft Corp, the backer of ChatGPT, may see a decrease in the usage of the premium version of the platform due to the new 9% tax in Chicago.
The new tax in Chicago could discourage users from subscribing to the premium version of ChatGPT, which is backed by Microsoft. This could potentially lead to a decrease in revenue for Microsoft from this product.
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