State Ex Rel. Arizona Department of Revenue v. Phoenix Lodge No. 708, Loyal Order of Moose, Inc.

OPINION

KLEINSCHMIDT, Judge.

This case presents the question of whether a fraternal organization must pay a transaction privilege tax on the receipts from its private dining room and lounge. We hold that it must.

The Phoenix Lodge No. 708 of the Loyal Order of Moose is a nonprofit Arizona corporation that is part of a fraternal benefit society, the Loyal Order of Moose, Inc. The Lodge derives its income from bingo receipts, membership dues, lounge sales, dining room sales and various fund-raising activities. Each of the Lodge’s 2,700 members pays $35 annual dues. Members of the women’s auxiliary…