City of Phoenix v. State Ex Rel. Conway

This action involves the right of the state to impose and collect a sales tax on water furnished by the City of Phoenix to its patrons and customers. The action was brought on the relation of the attorney general to settle a controversy between the State Tax Commission, whose duty it is to collect sales taxes, and the city authorities as to whether the latter is subject to the tax, and therefore seeks to secure a declaratory judgment construing “The Excise Revenue Act of 1935” (Chapter 77, as amended by Chapter 2, First Special Session, Laws of 1937). The trial court upheld the state’s right…