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City of Chicago, Illinois v. Stubhub!, Incorporated

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Nos. 09-3432 & 10-1144

Before EASTERBROOK, Chief Judge, and BAUER and KANNE, Circuit Judges.

Illinois law permits the purchasers of tickets to sporting contests, concerts, and similar events to resell these tickets via auction sites on the Internet. Chicago, which imposes an amusement tax on the original ticket price, contends that the venues through which tickets are resold must collect and remit an addi- tional tax on the difference between the original price and the resale price. In Chicago’s parallel suits against eBay and StubHub!, federal district judges rejected this contention. We heard the appeals in tandem and, after rejecting StubHub!’s federal defenses, certified that appeal to the Supreme Court of Illinois for an authorita- tive resolution of the issues under state law. 624 F.3d 363 (2010). Chicago’s suit against eBay presented a poten- tially more difficult federal defense, and we withheld decision of that appeal, pending the state court’s deci- sion, because resolution of eBay’s additional federal defense might become unnecessary.

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