Arizona Sports & Tourism Authority: AzSTA maintains key source of bondholder repayment with back-to-back wins in tax litigation

Source: Patrick Liberatore, Eva Bogaty, Leonard Jones, Moody’s, Issuer Comment, February 27, 2019
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On February 25, the Arizona Supreme Court affirmed a state appellate court’s 2018 order upholding the validity of a car rental tax levied by the Arizona Sports & Tourism Authority (AzSTA, A1 stable), a credit positive for the authority. The tax in Maricopa County (Aaa stable) comprised about 25% of AzSTA’s $54.9 million annual revenue pledged to bondholders as of the fiscal year ended June 30, 2018. The state Supreme Court also upheld the nullification a 2015 order by a lower court that the Arizona Department of Revenue (ADoR) must refund over $150 million of tax collections to car rental companies.