State Ex Rel. Arizona Department of Revenue v. Capitol Castings, Inc.

OPINION

NOYES, Judge.

¶ 1 The tax court held that certain materials used in the foundries of Capitol Castings, Inc. (“Capitol”) were exempt from use taxation because they were “machinery or equipment” within the meaning of Arizona Revised Statutes Annotated (“A.R.S.”) section 42-1409(B)(l). We reverse this judgment, and we overrule Arizona Dep’t of Revenue v. Cyprus Sierrita Corp., 177 Ariz. 301, 867 P.2d 871 (Ariz. Tax 1994), in which the tax court held that certain chemicals qualified for the same exemption. We also hold that Capitol’s counterclaim in the present case was time-barred.

Facts…