Dilley v. Ketchikan Gateway Borough

OPINION

COMPTON, Justice.

This appeal arises out of a sales tax dispute between the Ketchikan Gateway Borough (Borough) and Edward Dilley, a licensed pull-tab operator. Dilley was assessed over $400,000 for uncollected sales taxes, and interest, on gross revenues from pull-tab sales. The Borough Assembly denied Dilley’s appeal and upheld the assessment. The superior court affirmed. We reverse.

I. FACTUAL AND PROCEDURAL BACKGROUND

Dilley operates pull-tab games 1 under a state license. Typically, non-profit organizations retain Dilley to operate a pull-tab game for fund-raising purposes. See AS…