McElhaney Cattle Co. v. Smith

HOLOHAN, Chief Justice.

This case presents the question whether cattle being fed at a commercial feedlot are “inventory” exempt from taxation under either the “wholesaler” exemption provided by Article IX, § 2 of the Arizona Constitution or the “manufacturer” exemption provided by Article IX, § 13. We conclude that neither exemption is applicable.

This action was filed by McElhaney Cattle Company (McElhaney), S & V Cattle Company (S & V) and Gary Oden and Carol Oden (Odens) (collectively referred to as the taxpayers) against the taxing authorities of Yuma County and the Arizona Department of…