INTHE
CIRCUIT
COURTOFCOOK
COUNTY,
ILLINOIS
COUNTY
DEPARTMENT,
CHANCERY
DWISION
MICHAELLABELL,
JARED
LABELL,
SILAS
PEPPLE,
NATALIEBEZEK,
EMILYROSE,
and
BRYANT
Case
No.
JACKSON-GREEN
Plaintiffs,
v.
THE
CITYOF
CHICAGO,
and
DAN
WIDAWSKY,
in
his
official
capacity
as
Comptroller
of
the
City
ofChicago,
Defendants.COMPLAINT
FOR
DECLARATORYAN])
INJUNCTWE
RELIEF
Introduction
1.
On
June
9,
2015,
the
City
of
Chicago’s
Finance
Department
issued
a
ruling
extending
the
city’s
9
“Amusement
Tax”tocover
Internet-based
streaming
video
servicessuch
as
Netflix,
Internet-basedstreaming
audio
and
musicservicessuch
asSpotify,
and
Internet-based
gaming
servicessuch
as
Xbox
Live
services
the
City
has
nevertaxed
before
and
which
the
City
Council
has
neverauthorized
the
Finance
Department
to
tax.
This
lawsuit
challenges
that
ruling
for
exceeding
the
FinanceDepartment’s
authority
and
as
a
violation
of
the
federal
Internet
Tax
Freedom
Act,
47
U.S.C.
151
note
2015).
Jurisdiction
2.
This
Court
has
subject
matter
jurisdiction
over
this
matter
under
735
ILCS
5/2-701
becausePlaintiffs
seek
a
declaratory
judgment
that
a
tax
ruling
E L E C T R O N I C A L L Y F I L E D 9 / 9 / 2 0 1 5 3 : 1 4 P M 9 / 9 / 2 0 1 5 3 : 1 4 P M 9 / 9 / 2 0 1 5 3 : 1 4 P M 9 / 9 / 2 0 1 5 3 : 1 4 P M 2 0 1 5 - C H - 1 3 3 9 9 2 0 1 5 - C H - 1 3 3 9 9 2 0 1 5 - C H - 1 3 3 9 9 2 0 1 5 - C H - 1 3 3 9 9 C A L E N D A R : 0 4 P A G E 1 o f 1 7 C I R C U I T C O U R T O F C O O K C O U N T Y , I L L I N O I S C H A N C E R Y D I V I S I O N C L E R K D O R O T H Y B R O W N
issued
by
the
City
ofChicago
Comptroller
exceeds
Defendants’
authorityunderthe
law.
3.
This
Court
has
personal
jurisdiction
over
Defendants
because
thislawsuitarises
from
the
Defendants’actionsin
the
State
ofIllinois.
4.
Venue
is
properin
Cook
County
becausePlaintiffsreside
in
Cook
County,
Illinois,
andDefendantsare
locatedin
Cook
County.
Parties
5.
Plaintiff
MichaelLabell
isa
resident
ofChicago,
Cook
County,Illinois,
and
currently
pays
for
subscriptions
to
Netflix’s
Internet
video-streaming
service
and
Spotify’s
Internet
music-streaming
service
and
to
Amazon
Prime,
whichamong
otherthings
provides
members
with
video
and
music
streaming
services.
6.
Plaintiff
Jared
Labell
isa
resident
ofChicago,
Cook
County,Illinois,
and
currently
pays
fora
subscription
to
Amazon
Prime,
whichamong
otherthings
provides
members
with
video
and
music
streaming
services.
7.
Plaintiff
Silas
Pepple
isa
resident
of
Chicago,
Cook
County,Illinois,
and
currently
pays
fora
subscription
to
Xbox
Live’s
“Gold”
Internet
gaminganddigitalmedia
delivery
service.
8.
Plaintiff
Natalie
Bezek
isa
resident
ofChicago,
Cook
County,Illinois,
and
currently
pays
fora
subscription
to
Spotifr’s
Internet
music-streaming
service.
9.
Plaintiff
Emily
Roseisa
resident
ofChicago,
Cook
County,Illinois,
and
currently
pays
for
subscriptions
to
Netflix
and
Hulu’s
respective
Internet
video
2
E L E C T R O N I C A L L Y F I L E D
9 / 9 / 2 0 1 5 3 : 1 4 P M9 / 9 / 2 0 1 5 3 : 1 4 P M9 / 9 / 2 0 1 5 3 : 1 4 P M9 / 9 / 2 0 1 5 3 : 1 4 P M
2 0 1 5 - C H - 1 3 3 9 92 0 1 5 - C H - 1 3 3 9 92 0 1 5 - C H - 1 3 3 9 92 0 1 5 - C H - 1 3 3 9 9
P A G E 2 o f 1 7
streaming
services
and
to
Amazon
Prime,
whichamong
other
things
provides
members
with
video
and
music
streaming
services.
10.
Plaintiff
Bryant
Jackson-Green
isa
resident
ofChicago,
Cook
County,
Illinois,
and
currently
pays
for
subscriptions
to
Netflix
and
Hulu’s
respective
Internet
video-streaming
services
and
Spotifr’s
Internet
music-streaming
service
and
to
Amazon
Prime,
whichamong
otherthings
provides
members
with
video
and
music
streaming
services.
11.
Defendant
City
ofChicago
is
an
Illinois
municipal
corporation.
12.
DefendantDan
Widawsky
is
the
Comptroller
for
the
City
of
Chicago
and
has
held
that
office
at
all
relevant
times.
As
Comptroller,
Defendant
Widawsky
is
the
head
of
the
Finance
Department
and
is
authorized
to
adopt,
promulgateand
enforce
rules
and
regulations
pertaining
to
the
interpretation,administration
andenforcement
of
Chicago’s
Amusement
Tax.
Chi.
Mun.
Code
4-156-034.
actual
Allegations
Chicago’s
Amusement
Tax
13.
The
City
ofChicago
imposes
a
9
“Amusement
Tax”
on
admission
fees
or
other
chargespaid
for
the
privilege
to
enter,
witness,
view
or
participate
in
certain
activities
withinthe
City
ofChicago
that
theordinance
defines
as
“amusements.”
Chi.Mun.
Code
4-156-020.
14.
TheChicago
Municipal
Code
defines
the
“Amusement”
subject
to
the
Amusement
Tax
to
include
just
three
categories
of
activities:
(1)
anyexhibition,
performance,
presentation
orshowfor
entertainment
purposes,
including,
but
notlimited
to,
any
E L E C T R O N I C A L L Y F I L E D
9 / 9 / 2 0 1 5 3 : 1 4 P M9 / 9 / 2 0 1 5 3 : 1 4 P M9 / 9 / 2 0 1 5 3 : 1 4 P M9 / 9 / 2 0 1 5 3 : 1 4 P M
2 0 1 5 - C H - 1 3 3 9 92 0 1 5 - C H - 1 3 3 9 92 0 1 5 - C H - 1 3 3 9 92 0 1 5 - C H - 1 3 3 9 9
P A G E 3 o f 1 7