Oneil v. Valley National Bank of Phoenix

ROSS, J. This action was brought by the Valley National Bank of Phoenix, a national banking association, against the State Tax Commission seeking a declaratory judgment as to whether it should pay a sales tax on rentals it has collected and proposes to collect from tenants of offices in the Security Building located in Phoenix. It acquired said building on December 23, 1938, in the ordinary course of its banking operations and, as an incident of ownership and possession, leases space in the building and collects rent therefor. The federal statute, 12 U.S.C.A. § 29, permits a national bank to own and possess realty for a period of five years from the time of its acquisition.