A tax issue has apparently landed ride-share service Uber on a list of vendors the state of Wisconsin and UW System cannot do business with, according to a report from WMTV NBC-15.
A spokesperson for the Wisconsin Department of Administration explained that the ineligibility stems from Uber not being registered, collecting, or remitting Wisconsin sales or use tax on sales of tangible personal property or taxable services in Wisconsin, which is required by law. This means that the company was not collecting and reporting its sales and use tax appropriately, according to the agency.
State agencies cannot work with businesses that fail to follow sale and tax laws, and agencies are responsible for knowing when they are considered tax exempt.
A memo sent to some UW staff last week said those who use UW business travel cannot use Uber. Guests traveling to and from the university may also not use Uber. Anyone who chooses to use the service will not be reimbursed, and local taxi services or Lyft were recommended as alternatives.
