Court upholds car-rental tax surcharge for sports facilities - KVOA | KVOA.com | Tucson, Arizona

Court upholds car-rental tax surcharge for sports facilities

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PHOENIX (AP) - An appellate court decision says a car-rental tax surcharge imposed in Maricopa County to pay for building a football stadium and other sports and recreational facilities is legal.

The state Court of Appeals' decision Tuesday overturns a judge's ruling that the surcharge violates the Arizona Constitution and that car-rental companies are entitled to refunds.

The companies argued that surcharge revenue can be used constitutionally only for road maintenance and construction, but the Court of Appeals decision says voters didn't intend to apply the constitutional provision to every tax related to vehicles.

The surcharge funds the Arizona Sports and Tourism Authority. The public agency uses the money to pay off bonds that paid for the University of Phoenix stadium play along with baseball spring training venues and youth sports facilities.

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