US West Communications, Inc. v. City of Tucson

OPINION

NOYES, Judge.

¶ 1 The City of Tucson (“the City”) appeals from a tax court judgment that invalidated the 1.5% tax imposed by Tucson City Code section 19-1070(a)(2)(i) (effective Jan. 1, 1998), on the gross income of persons who provide telecommunication services to consumers in Tucson and use any City rights-of-way in doing so (“the 1.5% tax”). The tax court ruled that the 1.5% tax was invalid as a prohibited “tax, rent, fee or charge [on] a telecommunications corporation for the use of a public highway to provide telecommunications services.” Ariz.Rev.Stat. Ann. (“A.R.S.”) § 9-582(A)…