Section 230 of the Communications Decency Act is not a bar to a municipality's requirement that an online ticket auction site collect and remit applicable local amusement taxes from ticket sales on its site, the U.S. Court of Appeals for the Seventh Circuit ruled. The court noted that Section 230 "limits who may be called the publisher of information that appears online," and concluded that publisher status is irrelevant to the issue of liabilty for a tax. The court also ruled that the tax remittance requirement was not barred by the Internet Tax Freedom Act, 47 U.S.C. § 151, because it was neither multiple nor discriminatory within the meaning of the Act.
City of Chicago v. StubHub!, Inc., 624 F.3d 363 (7th Cir. Sept. 8, 2010) Download PDF