Thursday, May 22, 2008

Chicago Sues eBay, StubHub to Collect Tax


Buyers who purchase tickets to Chicago sporting and cultural events online through eBay and StubHub could end up paying an extra 8 percent tax if a lawsuit filed Monday by the city is successful. The city argues in the lawsuit filed in Cook County Circuit Court that the two firms—eBay bought StubHub last year—are "reseller's agents" and are therefore required under Chicago's ordinance to pay an amusement tax. The lawsuit seeks a court order allowing the city to audit the companies and award fines for failing to collect and pay the tax.
In 2005 the city filed a lawsuit seeking unpaid taxes against 17 companies that sell Chicago hotel rooms over the Internet. The suit is still pending.
http://www.chicagotribune.com/news/local/chicago/chi-chicago-sues-ebay-21-may21,0,7349451.story

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