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A judge for the U.S. District Court for the Northern District of Illinois grants eBay Inc.'s motion to dismiss a Chicago lawsuit claiming the auction site failed to pay the city's amusement tax on the resale of tickets to city events. Under the Municipal Code, a 9 percent amusement tax is imposed on patrons of every “amusement” in the city, and it provides that resellers of tickets and resellers' agents are responsible for collecting the tax. In its complaint, Chicago claimed eBay is a reseller's agent, and that it has failed to remit tax from those sales. eBay contended the General Assembly expressly excluded sellers such as eBay from being classified as reseller agents.
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