Duval Sierrita Corp. v. Arizona Department of Revenue

OPINION

JACOBSON, Judge.

This appeal involves a case of first impression in Arizona dealing with the statutory interpretation of A.R.S. § 42-1409(A), as amended Laws 1963, exempting from the Arizona use tax “machinery or equipment used directly” in mining and metallurgical operations.

Duval Sierrita Corporation (Duval) operates a copper mining and milling operation in Pima County, Arizona, known as the Duval Sierrita Mine. In order to place the controversy between the parties in proper perspective, an overall description of Du-val’s mining and milling operation is necessary.

Duval’s operation is…