CCI Europe, Inc. v. Arizona Department of Revenue

OPINION

PORTLEY, Judge:

¶ 1 We are asked to determine whether CCI Europe, Inc. (“CCI”) is required to pay the transaction privilege tax on the proceeds it receives from its software license agreement and maintenance agreements with Phoenix Newspapers, Inc. (“PNI”). Because the software is used as part of the manufacturing process to produce the printed version of the Arizona Republic newspaper, the proceeds from the agreements are statutorily exempt. Accordingly, we affirm the tax court’s summary judgment.

FACTUAL AND PROCEDURAL BACKGROUND

¶ 2 CCI develops and sells software to facilitate the…