Alamo Rent-A-Car, Inc. v. Board of Supervisors

The Board of Supervisors of Orange County (the Board) appeals a judgment invalidating its resolution No. 88-1604 which sought to impose a fee, based on gross receipts, for operation of rental car agencies located off the premises but serving the passengers of John Wayne Airport (the Airport). The Board contends its action was properly taken pursuant to its authority to operate and maintain the Airport facilities.

I

Five of the rental car agencies servicing arriving and departing passengers at the Airport are located on Airport property, maintaining counter, office, and limited “ready-car” parking space on the site. These agencies obtained their positions through competitive bidding and are accordingly assessed 10 percent of their gross receipts. The agencies unable to operate within the terminal are headquartered on sites not associated with the Airport, meeting their customers’ needs through the use of shuttle buses to and from the Airport.

In late 1988, the Board imposed an off-airport rental car fee, assessing each impacted agency 9 percent of its gross receipts. In January 1989, Alamo Rent-A-Car, Inc., opened its off-site business pursuant to the fees imposed. In…