No back taxes for permanent seat license buyers

Bears fans who bought permanent seat licenses for the right to buy season tickets at Soldier Field are off the hook for back taxes — at least for now.

At the request of a judge hearing a class-action lawsuit filed by Bears fans, City Hall has agreed to wait for a decision before retroactively collecting Chicago’s nine percent amusement tax from 2,700 PSL holders who were not the original owners.

Bears President Ted Phillips delivered the news in an e-mail to all season ticket holders.

“The Bears have met with the city to express our view that the city should not be entitled to collect amusement tax on the transfer of PSL’s between private parties. In addition, there is a class-action lawsuit pending,” Phillips wrote.

“Although the Bears have no role in this ... lawsuit, it appears that the city will: 1) temporarily [suspend] asking PSL transferees to fill out the affidavit asking them the circumstances regarding acquisition of their PSL’s and 2) not engage in any billing or collection of any amusement taxes relating to transfer of PSL’s until further notice.”

Law Department spokeswoman Jennifer Hoyle said the decision to back off was done “as a courtesy” to the judge. It does not mean the city is throwing in the towel.

“Our legal position is still the same. We’re going to defend the lawsuit. We think we have a strong case,” Hoyle said.

“We’re not backing off our position. All we’re doing is telling people who got the notices that a lawsuit was filed and they don’t have to do anything further at this time."

Pressed on how long the reprieve would last, she said, "Until there is a substantive decision."

Bears season ticket-holders are furious about the city's demand because they consider it double-taxation. The nine percent amusement tax already applies to the face value of game day tickets. Now, they argue, they're being asked to pay twice.

The lawsuit seeks to re-coup at least $10 million worth of amusement taxes paid to the city when PSL’s were originally sold. That’s even though original owners paid a flat fee, wrote checks to the “Lakefront Improvement Fund” that financed Soldier Field and were never told that some of the money was being paid to the city to cover the amusement tax.

Last month, Mayor Daley argued that Bears fans have made a killing by re-selling their PSL’s and that Chicago taxpayers deserve a cut of the action.

“They’re flipping it,” Daley said, using a term normally reserved for actual real-estate. “I bought it for $1,000. I sold it for $5,000. That’s all they’re doing. So, we caught ‘em … Some of ‘em are just trying not to pay the tax.”