State Tax Commission v. Ranchers Exploration & Development Corp.

OPINION

DONOFRIO, Presiding Judge.

This appeal by the State Tax Commission is based upon the trial court’s ruling that appellee, Ranchers Exploration and Development Corporation did not have to report certain activities as taxable gross receipts under A.R.S. §§ 42-1309 and 42-1310.

In 1971 the Tax Commission performed a random audit of the taxpayer’s books. The audit covered the period from July 1, 1968 through March 31, 1971. The audit revealed that appellee did not report as taxable that part of his total gross receipts which were received from the sale of copper starter sheets. Appellee mines…