Libby, McNeill & Libby v. Department of Taxation

The applicable statutory provisions are contained in sec. 71.16, Stats. 1947:

“71.16. Privilege dividend tax. (1) For the privilege of declaring and receiving dividends, out of income derived from property located and business transacted in this state, there is hereby imposed a tax equal to three per cent of the amount of such dividends declared and paid by all corporations (foreign and local), except those specified in section 71.01 (3) (a) and (c), after September 26, 1935, and prior to July 1, 1949. Such tax shall be deducted and withheld from such dividends payable to residents and…