State ex rel. Brnovich v. City of PhoenixAnnotate this Case
The Supreme Court held that the constitutional prohibition on state and local governments from imposing or increasing taxes or other "transaction-based" fees on services does not extend to "trip fees" imposed by the City of Phoenix on commercial ground transportation providers who transport passengers to and from an airport.
The Attorney General filed a special action pursuant to Ariz. Rev. Stat. 41-194.01(B)(2) asking whether the City's newly adopted ordinance adjusting passenger pick-up fees and imposing new trip fees for dropping off departing passengers at the Phoenix Sky Harbor International Airport violates Ariz. Const. Art. IV, 25 as to commercial ground transportation providers. The Supreme Court held (1) the ordinance does not violate section 25 because the fees are not "transaction-based"; and (2) the bond provision in section 41-194.01(B)(2) is incomplete and unintelligible and therefore unenforceable.