[Drewbert]

Haven't seen this mentioned yet so here we are...


By AMANDA FEHD, Associated Press Writer
Tue May 20, 4:58 PM ET
SAN JOSE, Calif. - The city of Chicago is suing eBay and its subsidiary StubHub for failing to collect city amusement taxes on concert and sporting event tickets sold through the Web sites...


http://news.yahoo.com/s/ap/20080520/ap_on_hi_te/ebay_chicago_lawsuit

[simcat]

I always thought of stubhub, and especially ebay, as not sellers, or resellers of product, but merely a means of connecting buyer & seller.

from stubhub site: StubHub is not a ticket broker and we don’t own the tickets you purchase on our site.

I guess they can go after craigslist, classified ad sites, newsgroups, forums, messageboards w/ buy sell sections, etc. next.

[chetf]

They actually process the orders and receive the payment for the tickets. I think the city of chicago has a good case.

[skishore2006]

except that the taxes have already been paid on the initial sale of the ticket, wouldn't you think?

[Drewbert]

Good point.

Do they double tax re-sold tickets, or only tax for the amount over and above the original price paid?

[chetf]

That is on the original purchaser then to buy the tickets with a business license for resale. That is how it works now for everyone else.