Biggs v. betlach/macias

Summary

The court held that Arizona’s hospital assessment enacted to fund expanded AHCCCS coverage was not a tax under article 9, section 22 of the Arizona Constitution. Applying a three-factor characterization test, the court concluded that the assessment was imposed by an agency on a narrow class of hospitals and directly benefited those hospitals. The court further held that the assessment fell within the constitutional exception for statutorily authorized fees and assessments that are not prescribed by formula, amount, or limit and are set by a state officer or agency.