In a 5-2 decision, the Wisconsin Supreme Court has upheld a state property tax exemption for airlines operating hub facilities in Wisconsin. Both Midwest Airlines and Air Wisconsin have qualified for the exemption in the past. The airlines have not been exempt since 2003, when the Dane County Circuit Court ruled the exemption invalid; that court case had been brought by Northwest Airlines. The Wisconsin Legislature originally enacted the exemption in 2001 to stimulate investment and encourage economic development. The latest ruling means airlines that offer certain levels of nonstop service to and from Wisconsin will be exempt from paying state property taxes on aircraft and associated equipment. Officials believe it could help stimulate new air service within the state.
