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Co-Chair: Sen. Mark Miller, D-Monona

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Co-Chair: Mark Pocan, D-Madison

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Friday, July 11, 2008

Supreme Court rules against state in Menasha Corp. case

The state Supreme Court has ruled in favor of the Menasha Corp. and against the state in a high-profile sales tax case that will cost the state nearly $300 million. The decision means lawmakers may have to return to Madison to modify the budget.

A divided court affirmed the appeals court decision in the case, ruling that the state incorrectly collected sales tax on customized computer software sales.

In addition to the $265 million collected from companies with similar tax situations, the ruling means $28 million that would have been collected this year won't have to be paid.

The decision stems from a lawsuit brought by the Neenah-based Menasha, a packaging company. It argued computer software it purchased was customized and not subject to sales tax.

See more on the story here.

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Greg Bump

Contact: bump@wispolitics.com

Updates on Joint Finance Committee action on the 2007-09 Wisconsin state budget, from the first JFC meetings through the governor's final vetoes.

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