American Family Mutual Insurance v. Wisconsin Department of Revenue

American Family Mutual Insurance Company appeals from an order affirming a decision of the Tax Appeals Commission assessing taxes on income generated from U.S. government obligations for the period 1984-91. The sole issue on appeal is whether the statute imposing the tax, § 71.43(2), Stats., is a nondiscrirninatory franchise tax within the meaning of 31 U.S.C. § 3124(a)(1), which exempts U.S. government obligations from all state and local taxation except such as may be imposed by "a nondiscrirninatory franchise tax."

The facts are not in dispute. American Family is subject to § 71.43(2),…