Car rental companies have been saying for years that the taxes piled on to rental car customers is not only unfair, it's illegal.
A new lawsuit has just been filed questioning whether one of the taxes is constitutional.
Perry Gaa of Connecticut just came to Arizona with his family and said that he couldn't believe that he is paying more than $100 in taxes on his car rental.
"I guess it's not right," Gaa said. "When does it end? How many more get added on and for how many improvements that need to be made? It just seems like there's an expectation that out-of-towners are going to pay for it."
One of the rental car taxes on Gaa's receipt is a $2.50 levy that's helping pay for the Cardinals new football stadium and other spring training facilities in Maricopa County.
Two years ago, a class action lawsuit was filed on behalf of several car rental companies claiming that the levy discriminates against out-of-state residents and violates interstate commerce law.
That case is still pending in court, and another lawsuit has now been filed by Enterprise.
"We do not believe it is right for car rental customers to be unfairly targeted and burdened with special taxes to fund stadiums and other projects, especially since such projects would be more appropriately supported with a broad-based tax," said Laura Bryant, with Enterprise Holdings. "Furthermore, it is simply incorrect to assume car rental excise taxes do not affect local residents."
According to the Arizona Attorney General's Office the levy is legal, but now it appears that a judge will have the final say on the matter.
Some rental car customers told CBS5 that they should not have to pay for something they don't use.
"I don't think its fair, especially if I didn't know that I'm paying for it," said Leilani Vaerp, who is visiting Phoenix from San Francisco. "To pay for a stadium that I will not use when I'm here seems kind of ridiculous to me."
"Nowadays, it's tough to get by," said Fred Grattan of Boston. "Things are expensive. This just adds to the cost and makes it tougher."
Arizona's Department of Revenue is expected to file a report this week on the class action lawsuit.
A judge could rule on the case in the next few months.
Copyright 2012 KPHO (Meredith Corporation). All rights reserved.
Wednesday, May 22 2013 2:29 PM EDT2013-05-22 18:29:48 GMT
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