State Supreme Court Decides in River City

MADISON – Revenue Secretary Roger Ervin today expressed disappointment with the Wisconsin Supreme Court decision in Wis. Dept of Revenue vs. River City Refuse Removal, Inc.

The Court held River City, a subsidiary of Browning-Ferris Industries (BFI), did not owe tax on vehicles and equipment received from related companies. The Department has long held that transfers of assets between related companies are taxable, unless an exemption applies.

Chief Justice Shirley Abrahamson, in her dissenting opinion, agreed with the Department and the Circuit Court’s “well-analyzed, well-reasoned, and thorough opinion” supporting the Department’s position.  Justice Ann Walsh Bradley joined in the dissent.

“I am disappointed by this decision,” Ervin stated. “It is the Department’s responsibility to execute the laws of this state.  The Department continues to feel strongly that it acted appropriately in this matter.” 

Ervin added, “Unfortunately, the Courts reached a different conclusion regarding the application of sales tax in this case.  The Department respects that decision and will review its treatment of similar cases and statutory changes that have occurred since the case was filed.”