Publishers also seek to clarify whether they need to pay sales tax on equipment purchased outside the state. The Wisconsin Newspaper Association reports that at least one paper had its taxes audited because of newsroom equipment bought elsewhere. Wisconsin law provides that if sales tax was paid elsewhere, sales tax need not be paid in Wisconsin. However, if sales tax was not paid in the other state, the state can levy a tax on the use of the untaxed item. Also, under state law, Wisconsin newspapers are termed manufacturers.
Special deductions govern the taxation of production equipment.
The state has decided that copy-desk equipment can be considered production equipment and thus exempt from sales taxes, but computers used in news gathering are not and are subject to sales taxes. In February, however, the Arkansas Press Association successfully argued before the Arkansas Department of Finance and Administration that newspapers should be considered manufacturers for taxing purposes and that newspaper equipment, including laptops and digital cameras, should be exempt from sales taxes. APA Executive Director C. Dennis Schick and other association lobbyists gathered documents from papers that also had been audited and interviewed production and other newspaper personnel about their equipment needs. They used the data to persuade state officials. Nationwide, state officials are examining the way sales taxes are assessed and collected.