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Chicago Sues eBay for Taxes on Online Ticket Sales
The City of Chicago is suing eBay and its subsidiary StubHub for failure to collect city amusement taxes on tickets for concerts and sporting events that are resold online through their websites. eBay, which takes the position that the tax does not apply, claims that paying such sales tax could put small business owners who operate through auctioneer websites out of business, as implementing or modifying tax collection systems would be prohibitively costly. On the other hand, it is estimated that states lose billions of dollars each year in uncollected taxes from online sales.
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