Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Arizona Electric Power Cooperative, Inc. v. Arizona Department of Revenue

Court of Appeals of Arizona, First Division

March 28, 2017

ARIZONA ELECTRIC POWER COOPERATIVE, INC., Plaintiff/Appellant,
v.
ARIZONA DEPARTMENT OF REVENUE, Defendant/Appellee.

         Appeal from the Arizona Tax Court No. TX2014-000458 The Honorable Christopher T. Whitten, Judge

          Daniel T. Garrett, LLC, Woodruff By Daniel T. Garrett Counsel for Plaintiff/Appellant

          Arizona Attorney General's Office, Phoenix By Macaen F. Mahoney, Kenneth J. Love Counsel for Defendant/Appellee

          Judge Lawrence F. Winthrop delivered the opinion of the Court, in which Presiding Judge Randall M. Howe and Judge Jon W. Thompson joined.

          OPINION

          WINTHROP, Judge

         ¶1 Arizona Electric Power Cooperative, Inc. ("AEPCO") appeals the tax court's summary judgment in favor of the Arizona Department of Revenue ("the Department"). Because AEPCO's purchases of coal and natural gas are subject to use tax, we affirm the judgment of the tax court.

         FACTUAL AND PROCEDURAL BACKGROUND

         ¶2 AEPCO, a non-profit Arizona cooperative corporation, owns and operates the Apache Generating Station, an electric generation facility in Cochise County. AEPCO sells most of the electricity it produces to cooperative members, and sells the remainder to the general electricity market.

         ¶3 To generate electricity, AEPCO uses coal and natural gas, most of which AEPCO purchases from out-of-state suppliers, who are not subject to Arizona's transaction privilege tax. AEPCO originally paid use tax on those purchases, but later filed two refund claims with the Department, requesting a refund of use tax paid between 2003 and 2010.[1]The Department denied both claims. After an unsuccessful protest before the Office of Administrative Hearings, AEPCO appealed the Department's final order to the tax court pursuant to Arizona Revised Statutes ("A.R.S.") section 42-1254(C) (2013).[2]

         ¶4 In the tax court, the parties filed cross-motions for summary judgment. The tax court granted the Department's motion and denied AEPCO's cross-motion, determining that AEPCO's purchases of coal and natural gas were subject to use tax. After entry of final judgment in favor of the Department, AEPCO timely appealed. We have jurisdiction pursuant to A.R.S. §§ 12-120.04(G) (2016), -120.21(A)(1) (2016), and -170(C) (2016).

         STANDARD OF REVIEW

         ¶5 This court reviews de novo the tax court's grant of summary judgment and its interpretation of relevant statutes. See CCI Europe, Inc. v. Ariz. Dep't of Revenue, 237 Ariz. 50, 52, ¶ 7, 344 P.3d 352, 354 (App. 2015). Although we liberally construe statutes imposing taxes in favor of taxpayers, we strictly construe tax exemptions, given the general policy that all taxpayers should share the common burden of taxation. State ex rel. Ariz. Dep't of Revenue v. Capitol Castings, Inc., 207 Ariz. 445, 447, ¶ 10, 88 P.3d 159, 161 (2004). We apply these standards to determine whether AEPCO's purchases of coal and natural gas from out-of-state vendors are subject to Arizona's use tax.

         ANALYSIS

         I. AEPCO 's Purchases of Coal and Natural Gas Are Within the ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.