Salt River Project Agricultural Improvement v. City of Phoenix

OPINION

EUBANK, Judge.

The main issue to be determined on this appeal is whether the City of Phoenix (City) may impose its privilege license tax (excise) on the sale of electricity by the Salt River Project Agricultural Improvement and Power District (Salt River Project or Project) to the Roosevelt Irrigation District (Roosevelt District). We hold that it may not, and affirm the judgment of the trial court.

The facts are not in dispute. Salt River Project entered into a “Water Contract” with Roosevelt District’s predecessor on August 25, 1921, by which it sold certain of its pumping facilities…