Walgreen Arizona Drug Co. v. Arizona Department of Revenue

OPINION

HALL, Judge.

¶ 1 Walgreen Arizona Drug Company (Taxpayer) appeals a summary judgment holding that a return of investment principal is not includable as part of its total sales for purposes of the Arizona corporate income tax. We affirm the tax court’s decision.

BACKGROUND

¶ 2 Taxpayer operates retail drugstores as its primary business. As of 1995, Taxpayer’s parent company, Walgreen Company (Walgreen Co.), operated 2085 stores nationwide, with 120 in Arizona. The stores sell prescription drugs and other merchandise. Taxpayer and Walgreen Co. filed their Arizona income taxes on a combined…