Rental car companies are looking to get a refund of a tax collected by the city of Phoenix.
by Staff
June 7, 2016
The rental car taxes were helping to make debt payments on the University of Phoenix football stadium. Photo via Wikimedia/Cygunusloop99
1 min to read
The rental car taxes were helping to make debt payments on the University of Phoenix football stadium. Photo via Wikimedia/Cygunusloop99
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.
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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.
West Coast disasters pose unique challenges and liabilities for rental fleet operators, who are advised to take steps tailored to their specific situations.
Angry car renters are storming social media, the mainstream media, and online ratings platforms to complain about charges they claim are either unfounded or excessive.
Revcuity, an outgrowth of Frontline Performance Group, aims to help clients capture more revenue moments with face-to-face customers, including in the car rental space.
Martin Romjue has been editing and reporting for ARN since 2023 and fully transitioned to the role of chairman of the International Car Rental Show in 2026.