Knoell Bros. Const. v. State, Dept. of Rev.

OPINION

OGG, Presiding Judge.

This is an appeal taken by the appellant-defendant, State of Arizona, Department of Revenue (Department), from the trial court’s order granting summary judgment in a declaratory judgment action to the plaintiff-appellee, Knoell Brothers Construction, Inc. (Knoell).

In this appeal, this court must determine the proper method to be used by the Department in calculating Knoell’s liability under the transaction privilege tax imposed on contractors under A.R.S. § 42-1310(2)(i).

The tax that is in issue here is levied at a rate equal to one percent of the gross proceeds of…