7th Circuit curbs Chicago’s suits against eBay and StubHub

Cash-strapped city seeking to collect amusement taxes from website transactions

If only the city could sell its parking meters again… Last Wednesday, the 7th Circuit upheld a lower court decision to dismiss the City of Chicago’s lawsuits against online ticket reseller StubHub! Inc. and its parent company, auction site eBay Inc. The city was looking to wet its beak by collecting amusement taxes on website transactions.

The city leveled lawsuits at the companies in 2008 based on a municipal law that requires ticket resellers and agents to collect and remit a tax on the difference between the ticket’s face value and the resale price. When a federal district court nixed the case in 2009, the city appealed.

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