Mobil Oil Corp. v. Ley

Mobil Oil Corporation appeals a summary judgment granted to Michael Ley in its suit by seeking a declaratory judgment that the Wisconsin corporate franchise tax is unconstitutional. The issue is whether the constitutional restrictions on the income tax under art. VIII, sec. 1, of the Wisconsin Constitution apply to the Wisconsin corporate franchise tax measured by a corporation’s net income. We conclude that the state is empowered to levy a corporate franchise tax measured on net income without regard to the Wisconsin constitutional restrictions imposed on the income tax. Therefore, we affirm.