Department of Revenue
Office of the Director (602) 716-6090 Janice K. Brewer
John A. Greene
www.azdor.gov 1600 West Monroe Street, Phoenix AZ 85007-2650
CERTIFIED MAIL [redacted]The Director's Review of the Decision ) O R D E Rof the Administrative Law Judge Regarding: ))
[redacted] ) Case No. 201000178 - S)ID No. [redacted] ))
On February 1, 2011, the Administrative Law Judge (“ALJ”) issued a decision (“Decision”)regarding the protest of [redacted] (“Taxpayer”). The Taxpayer appealed this Decision onMarch 3, 2011. As the appeal was timely, the Director (“Director”) of the Department ofRevenue (“Department”) issued a notice of intent to review the Decision.In accordance with the notice given the parties, the Director has reviewed the ALJ'sDecision and now issues this order.
STATEMENT OF CASE
The Transaction Privilege and Use Tax Section in the Audit Division (“Division”) of theDepartment audited Taxpayer for the period of February 1, 2005 through October 31, 2008,and determined that Taxpayer was taxable under the retail classification for the auditperiod. The Division reclassified the use tax reported by Taxpayer to transaction privilegetax under the retail classification and assessed additional transaction privilege and citytaxes and interest (“Assessment”). Taxpayer protested and the matter went to hearing.The ALJ upheld the Division’s Assessment and denied Taxpayer’s protest.On appeal, Taxpayer argues that it did not have substantial nexus in Arizona, that itfollowed administrative rules in effect during part of the audit period, and that theAssessment should be abated. The Division argues that the Assessment was properunder the circumstances.