This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.
Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...
A Wisconsin legislative agency is casting doubts about the legality of special tax legislation enacted to land the proposed $10 billion Foxconn Technology Group manufacturing campus.
The Wisconsin Legislative Council, a nonpartisan state agency providing legal guidance to lawmakers, issued an opinion Sept. 19 examining potential legal problems with Special Session A.B. 1, now known as 2017 Wisconsin Act 58. The law, signed Sept. 18 by Gov. Scott Walker (R), grants Foxconn $3 billion in tax credits, exemptions, and subsidies for its plan to construct a 20 million-square-foot campus in southeastern Wisconsin.
The opinion focused primarily on the “expedited appellate procedures” created under the tax incentive law. An amendment added during the final phase of the legislative process provides Foxconn with special legal rights if it faces litigation. The amendment specified that circuit court rulings affecting Foxconn could be stayed and appeals would proceed directly to the Wisconsin Supreme Court.
The legislative council said several provisions of Act 58 could face challenges under the state constitution’s separation of powers doctrine.
“Three provisions of the Act appear to be plausibly subject to challenge on separation of power grounds: (1) the provision requiring the Court of Appeals to certify certain orders and judgments to the Supreme Court; (2) the provision requiring the Supreme Court to give preference to such certifications; and, (3) the provision that automatically stays certain circuit court judgments and orders,” the opinion said.
Senate Minority Leader Jennifer Shilling (D) requested the legal review. Shilling, who voted against passage of the Foxconn bill, issued a statement questioning the state’s decision to give preferential treatment to a single large company by diluting the traditional legal review process.
The Walker administration dismissed the findings, saying it believes the new law conforms to all state constitutional principles.
To contact the reporter on this story: Michael J. Bologna in Chicago at mbologna@bna.com
To contact the editor responsible for this story: Jennifer McLoughlin at jmcloughlin@bna.com
Text of the opinion is at http://src.bna.com/sLk.
Copyright © 2017 Tax Management Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to books@bna.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to research@bna.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)