TRSA Files Amicus Brief in Arizona Case

The Arizona Court of Appeals recently held oral arguments for a case involving now defunct Angelica Textile Services and a tax exemption for machinery and equipment in the state. TRSA filed an amicus brief on behalf of the linen, uniform and facility services industry to provide technical expertise in support of Angelica’s position.

TRSA is pursuing an opportunity in Arizona to reinforce recognition of the linen, uniform and facility services industry as processors, which has tax implications for TRSA members. The case of 9W Halo Opco LP dba Angelica Textile Services LP v. Arizona Department of Revenue addresses a transaction privilege tax exemption for machinery and equipment used in processing. The Arizona Superior Court denied Angelica Textile Services (now Emerald Textiles) the transaction privilege tax exemption, but Angelica appealed the decision. In March of this year, TRSA filed an amicus curiae brief in support of this appeal.

TRSA’s amicus brief included relevant context and case law to provide technical assistance and industry expertise to the case, clarifying that the linen, uniform and facility services industry performs processing and therefore should qualify for the exemption. These efforts mark strides toward TRSA action in additional states to secure tax incentives that promote members’ expansion and capital expenditures.