Wisconsin Department of Revenue Accuses Online Ticket Marketplace Operator of Sales Tax Evasion

The Wisconsin Department of Revenue has successfully appealed a circuit court decision in a significant tax case involving an online ticket marketplace. The appeal, filed by the Wisconsin Department of Revenue (DOR) on January 13, 2026, challenges an earlier ruling that StubHub, Inc., was not liable for sales taxes or penalties on ticket sales conducted through its platform between 2008 and 2013.

The case revolves around whether StubHub should be considered a “seller” under Wisconsin’s sales tax laws. StubHub operates as an online marketplace where users can buy and sell tickets to various events. According to the DOR, nearly $154 million in ticket sales occurred through StubHub for events in Wisconsin during the specified period, yet no sales tax was collected or remitted by StubHub. The DOR initially assessed StubHub over $8 million in back taxes and additional amounts in interest and penalties after conducting an audit. The Commission had previously ruled that while StubHub was subject to the sales tax, it was not liable for penalties due to a lack of clear guidance from the DOR.

The appeals court disagreed with this assessment, siding with the DOR’s argument that StubHub’s operations fell within the statutory definition of a seller because it facilitated transactions and collected payments from buyers before distributing proceeds to sellers minus its fees. This decision was bolstered by prior guidance published by the DOR which indicated that entities like StubHub were responsible for collecting sales taxes on such transactions.

StubHub argued against this interpretation, claiming its role was merely facilitative and likening itself to an auctioneer rather than a direct seller. Furthermore, they contended that legislative changes in 2019 clarified their obligations under new Marketplace Provider Laws but did not apply retroactively to their past operations. However, the court found these arguments unpersuasive, determining that existing statutes already encompassed StubHub’s activities.

In addition to affirming StubHub’s liability for unpaid taxes, the court also imposed penalties for what it deemed willful neglect of tax obligations. It referenced specific examples from state-issued bulletins that outlined responsibilities similar to those of StubHub’s business model—guidance which they concluded should have informed StubHub’s compliance actions during those years.

The attorneys involved in this case include representatives from both sides: legal counsel for the Wisconsin Department of Revenue and lawyers representing StubHub. Judges White C.J., Colon P.J., and Geenen J. presided over this appellate decision under Case ID No. 2024AP455.