judge-overturns-maricopa-county-car-rental-tax

Discussion in 'Newsstand' started by Mapsmith, Jun 18, 2014.  |  Print Topic

  1. Mapsmith
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    Mapsmith Gold Member

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    http://azstarnet.com/business/local...cle_0e4c3643-dfd3-553a-b8d9-f36f0c55462e.html

    Sorry the link is so slow and choppy. Unfortunately, we have to deal with it. Poor website and website management.

    "PHOENIX — A tax on renting cars in Maricopa County to help pay off the Cardinals Stadium is illegal, a judge ruled Tuesday.

    Maricopa County Superior Court Judge Dean Fink said the levy runs afoul of a state constitutional provision which limits any taxes levied on the use of vehicles on public streets to being used to pay for road construction and maintenance and related purposes. And Fink agreed with arguments by attorney Shawn Aiken, representing several car rental firms, that construction of a stadium clearly falls outside that restriction."

    Should, but probably won't, change rental rates in PHX. But the order also affects Bed Taxes in Maricopa County as well.

    Check your folios folks.
     
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  2. LIH Prem
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    LIH Prem Gold Member

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    I wonder if will be upheld .. the article says the car rental companies want the taxes refunded to them, does that mean they plan on keeping the taxes? Long way to go here.

    -David
     
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  3. Mapsmith
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    Mapsmith Gold Member

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    Will probably be upheld. Actually in Arizona, the laws read that you cannot have a tax that does not affect all people the same. So that a rental car tax for just one county (Maricopa to pay for the stadium) does violate Arizona Law. The Legislature would have to apply it to the entire State to make it valid. BUT Arizona has a law that states any new tax must be approved by 75% of the Legislature or it must be approved by the Voters in an Election. Neither will probably happen.

    I expect that the rental Companies will probably get a rebate of the taxes, but they will be required to adjust prices on their rentals by some uncertain amount.
     

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