Statutory Interpretation – Sales Tax

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WI Court of Appeals – District III

Case Name: Healthcare Services Group, Inc. v. Wisconsin Department of Revenue

Case No.: 2017AP567

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

Focus: Statutory Interpretation – Sales Tax

Healthcare Services Group, Inc., (HSG) appeals a circuit court order affirming a decision of the Wisconsin Tax Appeals Commission (the Commission). The issue on appeal is whether the Commission properly determined that services HSG provides to its customers qualify as “laundry services” under WIS. STAT. § 77.52(2)(a)6. (2015-16), and are therefore subject to a five percent sales tax. We conclude the statutory term “laundry services” is unambiguous, and the services at issue in this case plainly fall within that term. We further conclude that Manpower Inc. v. DOR, Wis. Tax Rep. (CCH) ¶401-223 at 36,413 (WTAC 2009)—the principal case on which HSG relies—is distinguishable. We therefore affirm the circuit court’s order upholding the Commission’s decision.

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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.