Wisconsin Appeals Court Orders StubHub to Pay $17.1 Million
The Wisconsin Court of Appeals has ruled that StubHub, a major ticket reseller, must pay $17.1 million. This amount includes interest, back taxes, penalties, and fees related to ticket sales conducted between 2008 and 2013.
Details of the Ruling
The Court identified StubHub as an “active seller of admission tickets.” This designation is significant because it confirms that the company is required to collect and remit Wisconsin’s 5% sales tax on ticket sales.
Tax Violations Noted
In its decision, the Court highlighted that StubHub exhibited willful neglect by not following the guidance outlined in Wisconsin’s tax bulletins concerning ticket brokers. The ruling emphasizes the company’s failure to file necessary state tax returns during the specified period.
Impact on StubHub
StubHub’s operations in Wisconsin were substantial during those five years. The company re-sold approximately $154 million in tickets. The large volume of ticket sales underscores the importance of compliance with tax regulations.
Financial Breakdown
- Total Amount Owed: $17.1 million
- Timeframe of Sales: 2008 – 2013
- Sales Tax Rate: 5%
- Total Ticket Sales in Wisconsin: $154 million
This ruling from the Wisconsin Court of Appeals serves as a reminder to all businesses to adhere to state tax laws. Compliance is essential to avoid significant penalties and financial repercussions.
