The Arizona Court of Appeals upheld a superior court’s order that a taxpayer was renting application software subject to the state’s transaction privilege tax (TPT). The court rejected the taxpayer’s argument that the software was intangible property, citing to a 1943 decision holding that the placing of a coin in a slot to play a record was the sale of tangible personal property subject to TPT because the music was perceptible to the senses.
Source: KPMG
