Arizona Public Service Co. v. City of Phoenix

OPINION

LACAGNINA, Judge.

Both the City of Phoenix (City) and Arizona Public Service (APS) appeal the trial court’s review of an administrative hearing officer’s ruling regarding a 39-month audit assessment for city privilege license taxes. The City claims the trial court erred as follows:

1. By finding that APS properly deducted the gross franchise fees from all three classes of customers in computing its tax;

2. By finding that as a result of its error in failing to collect taxes for sales of energy to nursing homes during a six-and-one-half-month period, APS should pay a penalty for that…