SCA Tissue Seeks Change in Tax Status

SCA Tissue has applied to change the tax status of its Menasha, Wis., mill with the Wisconsin Department of Revenue to a tax exempt status as a recycling company. The decision could have a significant impact on the tax base in the city, which has relied on significant tax revenues from the paper company.

According to local reports, the company had paid roughly $400,000 in property taxes this year, with around $160,000 going to the city of Menasha.

While the city only recently was notified that SCA is seeking an appeal of its tax status, Menasha has decided to hire an attorney to contest the application. At a Common Council meeting held Sept. 18, the Council voted to approve hiring an outside attorney to oppose the request.

Jeffrey Brandt, Menasha’s city attorney, noted that while the move by SCA is a "bold step, it is not uncommon." He noted that similar tacks have been taken in both De Pere and Green Bay, Wis.

The move by SCA is not the first time a paper company has applied, and received approval for a change in its tax status. Fox River Fiber applied for and was awarded the change in its status, and Green Bay Packaging is seeking a similar tax change.

Brandt said that the earlier decision is a main reason why the city cannot sit and wait for the state’s Department of Revenue to make a decision before addressing the problem. Along with a letter to be written to the state opposing the department’s previous decision, the attorney hired also could require a review by the Wisconsin Tax Appeals Commission.