Rowe International, Inc. v. Arizona Department of Revenue

OPINION

JACOBSON, Presiding Judge.

The Arizona Department of Revenue (Department) appeals from summary judgment entered in favor of the taxpayer, Rowe International, Inc. (Rowe), in Rowe’s action for a refund of transaction privilege taxes calculated on its sales of video game machines. Rowe’s tax liability in this case depends upon whether its customers are in the business of operating or conducting games or whether those customers are in the business of leasing or renting machines.

The factual background giving rise to this controversy is rather simple and straightforward. From October 1, 1979…