Wenner And City Of Phoenix v. Dayton-Hudson Corporation,

598 P.2d 1022 (1979)

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Nature of the Case

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Facts

P operated a department store within the city limits of Phoenix under the trade name Diamonds. As part of its business, P entered into agreements with other retailers to maintain certain departments within its stores. For this space, these special retailers pay P a percentage of gross receipts with a minimum monthly payment designated. The agreements are for a definite term and P may terminate at any time if the retailer is in default. The City of Phoenix (D) assessed a one percent privilege tax against the revenue generated by P's retailer agreements. P paid under protest and disputed the tax but lost the administrative hearing. P then sued D in Superior Court. The trial court granted P's summary judgment motion. D appealed.