Arizona Department of Revenue v. Ormond Builders, Inc.

OPINION

IRVINE, Judge.

¶ 1 This is an appeal from a judgment finding Ormond Builders, Inc. (“Ormond”) liable for transaction privilege tax under the State prime contracting classification and a municipal construction contracting classification. The judgment held Ormond liable for $477,785.25 with interest due to the State, Navajo County, and Gila County and $107,967.53 with interest due to the City of Show Low. We find that Ormond was a taxable prime contractor but that its gross income derived from the business of prime contracting did not include the amounts it received to pay other…