The Arizona Supreme Court agreed Tuesday to hear whether revenue generated through car rental fees can be used for sports complexes rather than just road construction and maintenance, reports Arizona Capitol Times.
The case stems from a 2010 challenge in which Saban Rent-A-Car alleged that a surcharge on car rental contracts, paid by the car rental companies, which was being used in Maricopa and Pima counties to fund the construction of sports complexes, was illegal.
Cap Timessays at issue is a law designed to help counties attract and retain sports teams and spring training by building facilities. Maricopa County placed a 3.5 percent surcharge on car rental contracts, and Pima County put in a flat $3.50 per rental charge to raise money for such projects.
A Maricopa County Superior Court judge ruled in 2014 that the Arizona Constitution limits any taxes levied on the use of vehicles on public streets to be used solely to pay for road construction and maintenance and other transportation projects.
