Devenir Assocs. v. City of Phoenix
In Devenir Assocs. v. City of Phoenix, 164 Ariz. 530, 532, 794 P.2d 605, 607 (Tax 1990), partners in a law firm each year created partnerships that leased personal property to the law firm. 164 Ariz. at 530-31, 794 P.2d at 605-06.
The partnerships claimed that the lease payments they received from the firm were exempt from the transaction privilege tax because the partnerships were in the business of practicing law and thus the leases were "casual." Id. at 531, 794 P.2d at 606.
The tax court, however, found the partnerships' business was leasing personal property, even if the business of the partners was practicing law, and thus that the leases were not unexpected and not exempt. Id. at 531-32, 794 P.2d at 606-07.