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Wisconsin Court of Appeals rules StubHub owes the state $17.1 million
GREEN BAY, Wis. (WBAY) – A decision Tuesday from the Wisconsin Court of Appeals decided that ticket re-seller StubHub owes the state $17.1 million in interest, back taxes, penalties, and fees from ticket sales on its platform from 2008 to 2013.
The Court of Appeals calls StubHub an “active seller of admission tickets” and rules that it must pay Wisconsin’s 5% sales tax.
It also says the company showed willful neglect by ignoring Wisconsin tax bulletin guidance on the matter regarding ticket brokers, and it owes penalties for not filing state tax returns.
During that five-year timeframe, Stub Hub re-sold $154 million in tickets in Wisconsin.
StubHub Stuck with $8.5 Million Wisconsin Sales Tax Bill
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StubHub Inc. is responsible for $8.5 million in sales tax because the company is a “seller” under state law, a Wisconsin appeals court held Tuesday.
“Because StubHub effected the actual transfer of the tickets sold on its website in exchange for payment, i.e., the sale, we conclude that StubHub is in fact a seller,” Wisconsin Court of Appeals District 1 Presiding Judge Pedro A. Colón said.
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Wisconsin appeals court rules StubHub must pay back taxes and penalties
(WLUK) – Online ticket seller StubHub is required to collect a state sales tax on its transactions, and a state penalty for failing to do so was proper, a state appeals court ruled Tuesday.
In 2014, the state Department of Revenue told StubHub it would be auditing its sales and use tax payments for 2008-2013, when the company did $154 million in sales in Wisconsin. After finding the taxes weren’t paid, it issued a notice to recover $8,495,937.50 in back taxes, plus another $8,567,136.15 in interest, penalties, and fees.
StubHub appealed. After rulings by the DOR and a circuit court, the case made its way to the appeals court, which ruled against StubHub Tuesday.
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