The Latest: Arizona Supreme Court upholds car-rental tax
PHOENIX (AP) — The Latest on an Arizona Supreme Court ruling on a car rental tax surcharge imposed in metro Phoenix to pay for building a football stadium and other sports and recreational facilities (all times local):
The Arizona Supreme Court has upheld a car rental tax surcharge that’s imposed in Maricopa County to pay for building a professional football stadium and other sports and recreational facilities.
Car rental companies challenged the surcharge on the grounds that it violated a section of the Arizona Constitution that requires revenues relating to the operation of vehicles to be spent on public highways.
A lower-court judge had previously ruled in favor of the rental companies.
But the Arizona Court of Appeals reversed the decision last spring, ruling voters who approved the constitutional provision “did not intend to encompass every tax or fee in any way ‘relating to’ vehicles.”
The decision Monday by the Arizona Supreme Court echoes the ruling by the Court of Appeals.
The Arizona Supreme Court is scheduled to release a decision Monday in a challenge of a car rental tax surcharge imposed in Maricopa County to pay for building a football stadium and other sports and recreational facilities.
The state’s highest court said last year that it would review a lower court’s ruling that concluded the surcharge is legal.
Attorneys for car rental companies had argued that a constitutional provision meant the surcharge revenue can be used only to build and maintain roads.
The surcharge partially funds the Arizona Sports and Tourism Authority. The agency uses the money to help pay off bonds for the stadium where the Arizona Cardinals play, along with baseball spring training venues and youth sports facilities.