Ruling is a crucial victory for the Tourism and Sports Authority
By: Howard Fischer | Capitol Media Services via Arizona Capitol Times
There’s nothing illegal about taxing car rentals to pay for sports stadiums and other projects, the state Court of Appeals ruled Tuesday.
In a key victory for the state’s two largest counties, the judges overruled a lower court decision, which said the Arizona Constitution requires levies connected with driving to be spent only on road and other transportation projects. Judge Diane Johnsen, writing for the court, said there’s a key difference between the act of renting a car and actually operating it.
Johnsen acknowledged that the tax may have been designed to place the largest burden on tourists. But she said it does not violate federal constitutional bars against states interfering with interstate commerce.
Tuesday’s ruling may not be the last word. The car rental company that first brought the challenge in 2010 has the option to seek review by the Arizona Supreme Court.