DaimlerChrysler Services North America, LLC v. Arizona Department of Revenue

OPINION

BARKER, Judge.

¶ 1 The question in this ease is whether a bad debt deduction under Arizona Administrative Code R15-5-2011 is limited to the vendor of goods to which the debt applies. We hold that it is, unless the assignment of contract rights pertaining to the goods is made with recourse against the vendor. Accordingly, we affirm.

Facts and Procedural Background

¶ 2 DaimlerChrysler Financial Services North America, LLC (“DaimlerChrysler”) purchased retail installment contracts from car dealers (“the Dealers”) arising from consumer automobile purchases between 1997 and 1999. 1 In the…