The city of Chicago is suing eBay and subsidiary StubHub for failing to collect an 8 percent amusement tax on tickets sold online.
The city charges in the lawsuit filed in Cook County Circuit Court that the two companies are "reseller's agents" and are required under Chicago's law to pay an amusement tax. The suit asks for a court order that will allow the city to audit the companies and hand out fines for not collecting and paying the tax.
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The lawsuit alleges that thousand of tickets have been sold to events at Chicago venues via the two Web sites. Total ticket sales sold through Earlier this month online retailer Amazon.com sued the state of New York challenging a new sate law that requires out of state Internet retailers to collect sales tax. The state of Texas is also looking into making Amazon collect taxes since it has a physical presence in the state.
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