Chicago Seeks Uncollected Taxes from Online Ticket Brokers

Chicago is seeking to collect unpaid amusement taxes on tickets being sold by online ticket brokers. The city passed an ordinance in 2006 requiring every reseller’s agent, including online ticket auctioneers, to remit amusement tax for tickets sold online for Chicago events. The city has sued two online ticket brokers, arguing that the companies were liable for Chicago amusement tax because of their facilitation of the resale of tickets for events taking place within the city. The city is requesting that the Illinois Circuit Court find the two companies (eBay & StubHub!)liable for amusement taxes they were required to collect and remit, plus interest and penalties. (City of Chicago v. eBay, Inc., Illinois Circuit Court, Cook County, No. 2008-L-050524, filed May 19, 2008)

Posted on February 17, 2009