Tuesday, January 30, 2007

Even MORE Wisconsin Spending

HT Owen.

This case is very important:

The 4th District Court of Appeals in Madison ruled Thursday that Neenah-based Menasha Corp. was eligible for a tax exemption on what the manufacturer said was customized business software. The Department of Revenue argued the software should be considered uncustomized, or “off-the-shelf” software that isn’t eligible for an exemption.

And Menasha Corp is hardly the Lone Ranger in this situation.

The Menasha case amounted to a $343,000 tax refund, plus interest, for the company. But similar cases could amount to as much as $250 million in refunds and interest, and as much as $100 million in potential lost taxes for the two-year budget that ends June 30, the Legislative Fiscal Bureau said in a recent memo.

Nelson estimated the potential liability for the state would be lower, perhaps between $120 million and $150 million.

There is another case working its way through the courts which could also go against the State. In that one, various Wisconsin companies have placed earning assets in Nevada, which does not have an income tax. Wisconsin is suing for what it claims is a tax liability.

1 comment:

The Asian Badger said...

Next Headline:

"Doyle Raises Taxes, Again."

"Blames Stupid Tax Court"