Supreme Court Upholds Arizona Car Rental Tax Ruling
Car rental companies challenged the tax, arguing that it violated a part of the Arizona state constitution that requires tax revenue from rental vehicles to go toward public highways.
The surcharge is projected to fund about $14.1 million of the $54.8 million total revenue from the Arizona Sports and Tourism Authority.
Photo via Gage Skidmore/Flickr.
The U.S. Supreme Court declined to review a lower courts ruling that declared Arizona's car rental tax on tourists is legal, KTAR reports.
The tax is a major source of revenue to help pay for athletic stadiums and other facilities. Voters approved the tax in 2000, and the state supreme court upheld the tax in February.
Car rental companies challenged the tax, arguing that it violated a part of the Arizona state constitution that requires tax revenue from rental vehicles to go toward public highways.
A lower court judge agreed with the rental agencies, but his ruling was subsequently overturned.
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