Loveness v. State Ex Rel. Arizona Department of Revenue

OPINION

WEISBERG, Judge.

¶ 1 Gary and Elizabeth Loveness (“taxpayers”) appeal from a summary judgment granted in favor of the Arizona Department of Revenue (“DOR”) on taxpayers’ claim for a partial refund of their Arizona income taxes. The taxes at issue arose out of services performed by taxpayers on an Indian reservation in Arizona. They argue that DOR’s assessment of a tax on their personal net income, which arose out of on-reservation logging services, was invalid under the Supremacy Clause of the United States Constitution because it:

1. was preempted by the comprehensive federal regulation…