State tech firms gain tax equity in budget
The Capital Times
July 27, 2005
The state budget signed into law Monday by Gov. Jim Doyle puts technology companies on equal footing with other businesses by extending the so-called single-sales factor tax treatment to tech firms.
Two years ago, the state began a phase-in of the single-sales factor tax treatment for firms in other business sectors, such as manufacturing.
Under current state law, Wisconsin-based tech companies face the threat of double taxation when they make sales outside Wisconsin: By Wisconsin, which has treated out-of-state sales as Wisconsin sales, and by the destination state. A Wisconsin firm's corporate income tax has been determined using a formula that included the value of in-state property and payroll, as well as sales.
Starting with this year, revenues from the licensing of computer software and services will be treated as Wisconsin revenue only if the purchaser of the software or services uses them in Wisconsin.
