Arizona Justices Seem to Support Tax Break for Linen Sanitizing

The Arizona Supreme Court seemed Thursday to reject the state’s argument that equipment used to sanitize linens for hospitals isn’t eligible for a use tax exemption.

The Arizona Department of Revenue said during oral arguments that making soiled textiles medically hygienic and ready for reuse doesn’t fall under the state’s industrial machinery exemption for processing of tangible personal property because it doesn’t involve converting raw materials into a finished product.

Several justices took issue with the state’s focus on “raw materials,” which doesn’t appear in the statute.

“If you’re if you’re putting so much emphasis on on the raw material ...