Airport Properties v. Maricopa County

In Airport Properties v. Maricopa County, 195 Ariz. 89, 985 P.2d 574 (App. 1999), lessees challenged the county's authority to tax their leaseholds following the repeal of the State's possessory-interest taxing system. Id. at 90-91, P 1, 985 P.2d at 575-76. In rejecting the county's argument, this court emphasized that even though Arizona Constitution, Article 9, Section 2(13), provides that "all property in the state not exempt by law shall be subject to taxation," tax may not be imposed on property unless the Legislature exercises its power to do so. Id. at 103, PP 52-56, 985 P.2d at 588. The Court held that the lessees' possessory interests in the leases were not taxable because by repealing the possessory-interest statute, the Legislature had demonstrated its intent that such interests not be taxed. Id. at 104, PP 57-60, 985 P.2d at 589.