As Chicago prepares to welcome eBay Live! to the city, it’s also taking them to court for for unpaid taxes on ticket sales.
The city has an “Amusement Tax” which is payable by ticket brokers for “theatrics, shows, exhibitions, athletics events and other amusements within Chicago”. They contend that both eBay and Stubhub are resellers agents and should be collecting the amusement tax on behalf of the city to the tune of some $4.2m a year.
If eBay, Stubhub and similar sites are to be turned into tax collectors for Chicago, then there’s nothing to stop every city in America imposing similar requirements. The burdon of assimilating different tax rates based on the venue of the ticket sold would be immense.
Let’s hope that eBay haven’t forgotten about taxes on eBay Live! or there could be tax collectors at the doors of the McCormick Convention Center 😛