Court upholds car rental tax imposed in Maricopa County
U.S. Court News
The Arizona Supreme Court on Monday upheld a car rental tax surcharge that’s imposed in Maricopa County to pay for building a professional football stadium and other sports and recreational facilities, marking the second time an appeals court has ruled the tax is legal.
Car rental companies had challenged the surcharge on the grounds that it violated a section of the Arizona Constitution that requires revenues relating to the operation of vehicles to be spent on public highways.
A lower-court judge had ruled in favor of the rental companies four years, saying the surcharge violated the constitutional provision and ordering a refund of the tax estimated at about $150 million to the companies.
But the Arizona Court of Appeals reversed the decision last spring. The Arizona Supreme Court on Monday echoed the Court of Appeals’ ruling.
The surcharge partially funds the Arizona Sports and Tourism Authority, an agency that uses the money to help pay off bonds for the stadium in Glendale where the Arizona Cardinals play, along with baseball spring training venues and youth sports facilities. The rest of the authority’s revenue comes from a hotel bed tax and payments for facilities usage.
The surcharge is charged on car rental companies, but the costs are passed along to customers.
Attorney Shawn Aiken, who represented Saban Rent-A-Car Inc. in the case, said in a statement that the challengers will evaluate in the coming weeks whether to ask the U.S. Supreme Court to consider the case.
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Texas Adopts Statewide Texting-While-Driving Ban
Effective September 1, 2017, Texas will become the 47th state to pass a statewide ban on texting while driving. Governor Abbott’s signing of House Bill 62 is an effort to unify Texas under a uniform ban and remedy the “patchwork quilt of regulations that dictate driving practices in Texas.”
The bill specifically prohibits drivers from reading, writing, or sending an electronic message on a device unless the vehicle is stopped. That includes texting and emailing. It does not, however, prohibit dialing a number to call someone, talking on the phone using a hands-free device, or using the phone’s GPS system.
Violations would be punishable by a fine ranging from $25 to $99, to be set by each municipality. Although penalties could rise to as much as $200 for repeat offenders.
Studies have found that a driver’s reaction time is half as much when a driver is distracted by sending or reading a text message. According to state officials, in 2015 more than 105,000 traffic accidents in Texas involved distracted driving, leading to at least 476 fatalities.