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Chicago Suing eBay and StubHub

The City of Chicago has filed lawsuits against eBay and its StubHub subsidiary, alleging that the popular ticket reseller failed to collect city amusement taxes when it sold concert and sporting event tickets online.

Chicago has an amusement tax law that taxes Internet sites that resell tickets.

eBay, which owns StubHub, says they will fight the lawsuit. Their position is that the 8 percent tax doesn't apply to them.

This interesting lawsuit was filed in Illinois' Cook County Circuit Court.

Don't expect fast closure on this lawsuit. Nearly three years ago, Chicago sued 17 companies that sell Chicago hotel rooms over the Internet, alleging that they too had failed to pay relevant taxes to the city. That lawsuit is still making its way slowly through the courts.

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