Refund Claims Relating to the Menasha Decision
How Does This Affect County and Stadium Tax Distributions?
The Wisconsin Supreme Court held in the case of Wisconsin Department of Revenue vs. Menasha Corporation (No. 2004AP3239, July 11, 2008), that the SAP R/3 System software purchased by Menasha was custom software that is not subject to Wisconsin sales or use tax when sold, leased, or licensed. A result of this decision is that the Department of Revenue will be issuing refunds of sales and use taxes paid on computer software or related service contracts that should not have been taxable based on the Menasha decision. It is expected that the majority of the refunds will be issued later this year and early next year.
Monthly county and stadium sales tax distributions may be reduced by these refunds, similar to the way they currently are for amended returns, audit adjustments, etc. The Department of Revenue will contact a county or stadium as soon as it becomes aware of any large adjustments to the county’s or stadium’s distributions, before the distributions are actually made.
Information regarding the Menasha decision is provided in an FAQ on the department’s web site at www.revenue.wi.gov/faqs/ise/menasha.html. The information and documentation required for the Department of Revenue to make a determination is described on Form S-269, which can be accessed at www.revenue.wi.gov/forms/sales/softquest.pdf.
Last updated September 15, 2008