TUCSON MECH. CONTR. v. DEPT. OF REVENUE

No. 1 CA-TX 91-0039.

175 Ariz. 176 (1992)

854 P.2d 1162

TUCSON MECHANICAL CONTRACTING, INC.; Lloyd Construction Co., Inc.; and Clyde Smith General Contractors, Inc., Plaintiffs-Appellants, v. ARIZONA DEPARTMENT OF REVENUE; Paul Waddell, in his official capacity as Director of the Arizona Department of Revenue, Defendants-Appellees.

Court of Appeals of Arizona, Division 1, Department T.

Review Denied July 7, 1993.


Attorney(s) appearing for the Case

Durazzo & Eckel, P.C. by Neal A. Eckel, Tucson, for plaintiffs-appellants.

Grant Woods, Atty. Gen. by Patrick Irvine, Asst. Atty. Gen., Phoenix, for defendants-appellees.


OPINION

McGREGOR, Judge.

The primary issue in this appeal is whether the legal incidence of Arizona's transaction privilege tax falls upon the purchaser of prime contracting services and thereby violates the federal government's constitutional immunity from state taxation when the federal government acts as a purchaser. We also consider whether the Arizona Department of Revenue, in enforcing the transaction privilege tax, systematically discriminated against...

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