Abuse of Discretion – Primary Jurisdiction Doctrine

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WI Court of Appeals – District II

Case Name: Wisconsin Property Tax Consultants, Inc., et al., v. Wisconsin Department of Revenue

Case No.: 2020AP485

Officials: Neubauer, C.J., Reilly, P.J., and Davis, J.

Focus: Abuse of Discretion – Primary Jurisdiction Doctrine

In 2017, the legislature enacted a new personal property tax exemption for “[m]achinery, tools, and patterns.” WIS. STAT. § 70.111(27) (2017-18); 2017 Wis. Act 59, § 997J. Wisconsin Manufacturers and Commerce, Inc. (WMC), a business trade association, asked the Wisconsin Department of Revenue (DOR) to offer its interpretation of § 70.111(27) based upon hypothetical facts, arguing that DOR’s application of § 70.111(27) violated statutory rulemaking procedures. WMC, unhappy with DOR’s interpretation, filed a declaratory judgment action seeking a declaration that DOR’s interpretation of § 70.111(27) is invalid. The circuit court, pursuant to the primary jurisdiction doctrine, dismissed WMC’s action deferring to the principle of administrative review and the expertise of the Wisconsin Tax Appeals Commission (TAC). We affirm as the circuit court’s dismissal adheres to the legislature’s statutory process of administrative review.

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Derek A Hawkins is Corporate Counsel, at Salesforce.