Arizona Department of Revenue v. Mountain States Telephone & Telegraph Co.

CAMERON, Chief Justice.

The State Tax Commission assessed a transactional privilege and education excise tax of $3,172.28 against Mountain States Telephone and Telegraph Company (Mountain Bell) on the sale and lease of telephone equipment to the United States Government, Department of the Army. The State Tax Commission held that the total gross proceeds received by Mountain Bell for the sale of the system and the lease of the switcher were taxable under the transaction privilege and education excise taxes, A.R.S. § 42-1301, et seq., § 42-1361, et seq., as a sale and lease of tangible personal…