City of Madison, Wisconsin | Legislative Information Center
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File #: 42296    Version: 1 Name: Authorizing payment of a tax refund and associated interest to NES Equipment Services Corp. and making an $1,700 appropriation from the Contingent Reserve to pay interest.
Type: Resolution Status: Passed
File created: 3/25/2016 In control: BOARD OF ESTIMATES (ended 4/2017)
On agenda: 4/19/2016 Final action: 4/19/2016
Enactment date: 4/22/2016 Enactment #: RES-16-00290
Title: Authorizing the payment of a tax refund and associated interest as required by state law to NES Equipment Services Corporation. due to a retroactive amendment made to the personal property exemption statute for rental equipment and making an $1,700 appropriation from the Contingent Reserve to pay interest.
Sponsors: Paul R. Soglin
Fiscal Note
The proposed resolution provides a tax refund to NES Equipment Services Corporation as the result of a retroactive agreement impacting pending litigation between the City and NES. Both parties have reached an agreement that the City will refund half of outstanding accumulated interest ($1,700). The proposed resolution will appropriate $1,700 from the Contingent Reserve for this purpose. Upon adoption of this resolution the balance of the 2016 Contingent Reserve will be $1,138,646.
Title
Authorizing the payment of a tax refund and associated interest as required by state law to NES Equipment Services Corporation. due to a retroactive amendment made to the personal property exemption statute for rental equipment and making an $1,700 appropriation from the Contingent Reserve to pay interest.
Body
This resolution authorizes the payment of a tax refund and associated interest as required by state law to NES Equipment Services Corporation due to a retroactive amendment made to the personal property exemption statute for rental equipment.

The City denied NES Equipment’s exemption because the statue contained a provision that the entity could not qualify for exemption if they had subsidiaries or affiliate companies that were engaged in business other than personal property rental. NES Equipment sued the City for the refund of the 2014 taxes in the Dane County Circuit Court Case Number 15CV1573. The Wisconsin Legislature amended this section in 2015 Wis. Act 55 (Budget Bill) retroactive to January 1, 2014, which resolved the City’s argument concerning NES Equipment affiliate companies and subsidiaries. This change in the law was adopted on July 12, 2015. In December of 2015 the Department of Revenue released the 2016 version of the Wisconsin Property Assessment Manual, which provided further instruction and clarification on the specific types of equipment that Assessors should exempt under this section.

Therefore, in light of the retroactive amendment ...

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