Dove Mountain v. Ador

Summary

The court held that reimbursements paid to a hotel for loyalty-program members’ complimentary stays are gross income and taxable under Arizona’s transaction privilege tax. It concluded that the prior trading-stamp decision did not control because the loyalty program here lacked a direct connection between particular earning and redemption transactions. The court vacated the court of appeals’ opinion but affirmed the tax court’s summary judgment for the Department of Revenue.