Sales & Use Tax

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WI Court of Appeals – District III

Case Name: Tetra Tech EC, Inc., et al v. Wisconsin Department of Revenue

Case No.: 2015AP2019

Officials: Stark, P.J., Hruz and Seidl, JJ.

Focus: Sales & Use Tax

In this sales and use tax case, the Tax Appeals Commission concluded: (1) Stuyvesant Dredging, Inc.’s (SDI) activity of separating dredged material from the Fox River into its constituent parts constituted “processing” of tangible personal property under WIS. STAT. § 77.52(2)(a)11. (2007-08), and thus is a service subject to Wisconsin’s retail sales and use tax; and (2) WIS. STAT. § 77.59(3) did not preclude the Department of Revenue from raising an alternative legal basis for taxation before the commission that was not first asserted in the Department’s written notices of determination to Lower Fox River Remediation, LLC (Fox River Remediation) and Tetra Tech EC, Inc. (Tetra Tech). We determine the commission’s legal conclusions are entitled to great weight deference and, under that deferential standard, we conclude they are reasonable. We also conclude the Department complied with the requirements of WIS. STAT. § 77.59(3). Therefore, we affirm the circuit court’s order affirming the commission’s order.

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.