Sanfelippo v. Wisconsin Department of Revenue

Joseph Sanfelippo owns two taxicabs. He leases his cabs to the drivers. The issue is whether the drivers' lease payments to him are gross receipts from sales at retail and, therefore, subject to the retail sales tax under sec. 77.52(1), Stats.1 The Wisconsin Department of Revenue believes that the sales tax applies and assessed a sales tax against Sanfelippo. The Wisconsin Tax Appeals Commission agreed with the department. The circuit court accepted Sanfelippo's claim that the sales tax does not apply and reversed the commission's decision. The department appeals. We conclude that the lease…