ARIZONA DEPT. OF REV. v. CENTRAL NEWSPAPERS

No. 1 CA-TX 07-0016.

218 P.3d 1083 (2009)

ARIZONA DEPARTMENT OF REVENUE, Plaintiff/Appellee, v. CENTRAL NEWSPAPERS, INC., Phoenix Newspapers, Inc., Central Newsprint Co., Inc., Bradley Paper Co., Topics Newspapers, Inc., Indianapolis Newspapers, Inc., Muncie Newspapers, Inc., Vincennes Sun Commercial, Vincennes Newspapers, Inc., McCormick & Co., Inc. aka Alexandria Newspapers, Inc., McCormick Graphics, Inc., McCormick Newspapers, Inc., Lee Fulton, Inc., Westech Expo Corp., Career Services, Inc., Homebuyer's Fair, Inc., National School Reporting Services, Inc., Indiana Newspapers, Inc., Fas Hotline, Center for Mobility Resources, Inc., Caratine & Co., Inc., CNE Corp., CNT Corp., CNF Corp., Defendants/Appellants.

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

November 3, 2009.


Attorney(s) appearing for the Case

Terry Goddard, Attorney General By Kimberly J. Cygan, Assistant Attorney General, Phoenix, Attorneys for Plaintiff/Appellee.

Steptoe & Johnson LLP By Bennett Evan Cooper, Patrick Derdenger, Dawn R. Gabel, Randall T. Evans, Phoenix, Attorneys for Defendants/Appellants.


OPINION

IRVINE, Judge.

¶ 1 This corporate income tax case addresses whether Public Law 86-272 precludes the state from including an out-of-state partnership's revenues in the numerator of the apportionment formula of an Arizona consolidated return. The partnership's only nexus to Arizona is its shipment of newsprint to a buyer within the state. The partnership is partly owned by corporations that have elected to file a consolidated return with Arizona...

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