Arizona Department of Revenue v. Daniel

OPINION

GERBER, Judge.

The Arizona Department of Revenue (DOR) assessed delinquent transaction privilege (sales) taxes against Warren Daniel, Ann Daniel and Bingo West, Inc., (taxpayers) on their sales of bingo paper1 to licensed operators of bingo games in Arizona. The appeal presents these questions:

1. Whether the taxpayers’ sales of bingo paper to bingo licensees constituted retail sales under AR.S. section 42-1310.01;

2. Whether DOR could validly impose late filing and late payment penalties against the taxpayers under AR.S. section 42-136(A) and (D) for periods before that statute became…