Phoenix Rental Companies Challenge $34M in Taxes

The rental car taxes were helping to make debt payments on the University of Phoenix football stadium. Photo via Wikimedia.
The rental car taxes were helping to make debt payments on the University of Phoenix football stadium. Photo via Wikimedia.

Rental car companies are looking to get a refund of a tax collected by the city of Phoenix, according to a report by the Associated Press. These rental companies won a court order for the return of about $150 million in taxes from a fund that pays for the University of Phoenix stadium.

The Arizona Sports and Tourism Authority depends on revenue from the 3.25% rental car tax to make debt payments on the University of Phoenix stadium as well as to promote tourism and pay for Cactus League stadiums.

The rental companies are seeking a refund of money that they have paid in sales taxes over the past four years, according to the report. An Arizona judge ruled that the rental car tax went against a state constitutional provision. Taxes imposed on the use of vehicles — on public streets — are restricted to funding road construction, maintenance, and related purposes.

Three rental companies are involved and paid about $200,000, but the city of Phoenix has collected more than $34 million from its rental car tax since 2012, according to the report.

The claim was filed last week for the companies by attorney Shawn Aiken. The claim could expand into a class-action case, says the report.

Click here for the full Associated Press report.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Why Do We Visit Capitol Hill?

Members of the American Car Rental Association met with U.S. senators, representatives, and their aides last week. Here’s why bringing the message to this forum matters.

The Customer Isn’t Always Right

Not caving to a customer with a blatant agenda may have consequences, especially for a small rental company that relies on stellar Yelp ratings to advertise. But business integrity must prevail.

The Truth Behind Compact Van Depreciation

Why are large van values holding up better than their compact counterparts, and will it last?

Job Finder: Access Top Talent. Fill Key Positions.