Saban Rent-A-Car LLC, Plaintiffs/appellees/cross-Appellants v. Arizona Department of Revenue…

Summary

The court held that Maricopa County's car-rental surcharge does not violate the dormant Commerce Clause because it applies evenhandedly to resident and nonresident rental agencies and customers, without discriminatory treatment of interstate economic interests. It also held that the surcharge is not subject to Arizona's anti-diversion provision because that provision covers taxes imposed as prerequisites to, or triggered by, the lawful operation or use of vehicles on public roads, not taxes imposed on the business of renting vehicles. The court affirmed the court of appeals, reversed the tax court's judgment and refund order, and remanded for judgment in favor of the state defendants. Justice Bolick concurred in the Commerce Clause analysis with reservations but dissented from the anti-diversion holding, concluding that the surcharge plainly relates to vehicle use on public highways.