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Millions of dollars in tax exemptions are being eliminated for waste treatment facilities in Wisconsin. This will translate into higher property taxes for many corporations.

Act 19 overturns a 2004 decision by the Wisconsin Tax Appeals Court (The Newark Group Inc. vs. The Wisconsin Department of Revenue) that expanded the property tax exemption for waste treatment plants and pollution abatement equipment.
 

Under the Newark decision, property installed to treat waste paper would qualify for sales & use and property tax exemptions even though the paper could be re-used in the paper manufacturing process and therefore had a residual value.

Act 19 reinstated the position of the Wisconsin Department of Revenue prior to the Newark group case, which stated that in order to qualify for tax exemptions, the property created could have no residual value after treatment. The reversal of the Newark decision means fewer properties will qualify as waste treatment facilities.

As tax exemptions are eliminated or restricted, it is crucial for manufacturers to take full advantage of all remaining tax breaks available to them. A tax consultant firm with expertise in multiple states can maximize these and other tax benefits in all your business locations.