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Multiple Listing Service of Tucson, Inc. v. City of Tucson

Citations: 148 Ariz. 278; 714 P.2d 448; 1985 Ariz. App. LEXIS 788Docket: No. 2 CA-CIV 5456

Court: Court of Appeals of Arizona; November 7, 1985; Arizona; State Appellate Court

Narrative Opinion Summary

This case involves an appeal concerning whether the listings of Multiple Listing Service of Tucson, Inc. (MLS) qualify as 'publications' subject to taxation under Tucson Code § 19-81. MLS, serving real estate brokers, offers a confidential listing service exclusively to paying members. An administrative hearing initially upheld a tax assessment of $72,540.45 against MLS for the period from July 1, 1980, to May 31, 1983. However, the superior court ruled in favor of MLS, ordering a tax refund. The city argued that MLS's activities should fall under the taxable category of publications, relying on a broad interpretation of the tax code. The superior court, however, concluded that 'publication' entails communication to the general public, a criterion not met by MLS's confidential listings. The court referenced precedents to support its decision, distinguishing between taxable activities and MLS's services. Ultimately, the court affirmed the superior court's decision, ruling that MLS's operations do not meet the definition of a taxable publication under the Tucson Code, aligning with the principle that public accessibility is crucial for taxation. Judges Birdsall and Fernandez supported the ruling.

Legal Issues Addressed

Application of Precedents in Defining Publications

Application: The case clarified that previous case law does not support a broad interpretation of taxable publications to include MLS's services, as they were not intended for public distribution.

Reasoning: The court referenced relevant case law but clarified that the cited cases did not support the city's expansive interpretation.

Confidential Listings and Taxation

Application: Confidential listings available only to MLS members were deemed not subject to the publication tax, reaffirming the requirement for public access in tax assessments.

Reasoning: Consequently, the court affirmed that the material did not qualify as a publication under the Tucson Code, which similarly requires public availability for exemption.

Definition of 'Publication' under Tax Code

Application: The court determined that MLS's listings do not qualify as 'publications' because they are not accessible to the general public, which is a requirement for taxation under Tucson Code § 19-81.

Reasoning: The court determined that MLS’s listings are not publications and affirmed the lower court's decision.

Taxation Criteria for Publications

Application: The court emphasized that for a service to be taxable as a publication, it must be communicated to the general public, a criterion which MLS's confidential listings did not meet.

Reasoning: The court, however, reiterated that 'publication' implies communication to the general public, citing precedents that distinguished between clear classifications of taxable activities and MLS's confidential service.