Arizona, Linen Sanitizer Trade Jabs on Tax Break Applicability

A business that rents linens to hospitals squared off with the Arizona Department of Revenue in dueling briefs to the state high court over whether the company’s machinery is tax-exempt.

9W Halo OPCO LLC, doing business as Angelica Textile Services, sought to differentiate itself from a laundry or dry cleaner, arguing its machines are exempt from the use tax because they make soiled textiles medically hygienic and ready for reuse. The department argued that “as much as Angelica tries to glorify” its processing, ultimately it’s just laundering.

The Monday briefs come in response to the Arizona Supreme Court’s call for ...