State v. Levy's

HOLOHAN, Justice.

Plaintiffs-appellees filed an action for declaratory relief to have Ariz.Rev.Stat. § 42-1321.01 (Supp.1977) declared unconstitutional. 1 The statute provides for an exemption from the transaction privilege tax on sales of less than $1,000 to Mexican residents with proper documentation within 30 miles of the Mexican border. The statute in question was passed to mitigate the adverse economic impact on Arizona business along the Mexican border effected by the devaluation of the Mexican peso. The exemption from the sales tax provided the opportunity for the border businesses to…