Sisters Mary Joanne Kollasch, Mary David Walgenbach, Mary Raphael Hilger, Mary Concepta Tritz, Mary Philomena Head…

Summary

The Wisconsin Supreme Court held that the Sisters of St. Benedict, in furnishing meals to guests at their ecumenical retreat center, are not 'retailers' within the meaning of sec. 77.51(7), Stats., and that receipts from the meals fall outside the Wisconsin sales tax because the service is a fundamentally nonmercantile transaction and an integral part of the Sisters' religious ministry. Because the circular statutory definitions of 'retailer' and 'seller' created ambiguity, the court resolved that ambiguity against imposition of the tax and did not reach the Sisters' free-exercise challenge. The court reversed the court of appeals, which had deemed the meals taxable, and remanded with directions to enter judgment declaring the Sisters not liable for the tax and not required to obtain a seller's permit. Justice Coffey concurred on additional statutory and privacy grounds, while Justice Abrahamson dissented, contending that who should be taxed is a question for the legislature and that she would affirm the court of appeals.