The policy doesn't state how ACV should be determined for valuing personal property. In Lukes v. American Family Mut. Ins. Co. 455 F.Supp.2d 1010 D.Ariz.,2006. August 24, 2006 it was stated that according to Arizona law the carrier has an obligation to pay sales tax as part of the property settlement. The court felt that since the policy defined actual cash value as the cost to repair/replace less deterioration or depreciation that sales tax should be included in any ACV calculations. Remember that policies are contracts of adhesion and any ambiguities are found in favor of the insured in most instances. Since the standard definition of ACV is the value of the property less depreciation, the sales tax should be included in the settlement. The insured paid tax when they bought the items, and they will have to pay tax in order to replace the items. Since the broad evidence rule states that trier of facts may consider any evidence logically tending to the formation of a correct estimate of the value of the property at the time of loss, in our opinion the carrier should pay the sales tax.