State says Frontier owes thousands in back taxes

MILWAUKEE -- The state of Wisconsin says the second largest airline flying out of Mitchell International Airport owes thousands of dollars in back taxes. The Wisconsin Department of Workforce Development has filed tax warrants against Frontier Airlines and its parent company, Republic Airways, totaling nearly $863,000.

Frontier and Republic have taken issue with the unemployment insurance tax rate the state set for them following deals in 2009. Republic Airways purchased Frontier and Midwest Airlines in separate deals that year, and eventually, Frontier absorbed the Midwest brand.

The heart of the issue is the decision to transfer employees of Midwest to the payrolls of Frontier and Republic. This transfer triggered an increase in the unemployment insurance tax rate.

The airlines are set to discuss the matter with the state this week.

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