Goldwater Institute Sues Gilbert Town: The Goldwater Institute has filed a lawsuit against the town of Gilbert, Arizona, challenging the town’s recent tax increases. These taxes, which raise sales taxes, and hotel taxes, and add new online vendor taxes, are meant to fund various infrastructure projects, including pickleball courts and splash pads. Critics argue that the tax hikes are illegal under the Arizona Constitution.
New Taxes and Their Impact
In October 2024, the Gilbert Town Council approved the tax hikes, saying they were necessary to fund “critical infrastructure projects.” These include recreational amenities such as pickleball courts and a “statement” bridge.
The taxes will apply to all goods and services sold in Gilbert, as well as hotels, motels, and short-term rental properties. A new tax will also target online vendors with sales under $100,000 annually in Arizona.
However, local businesses and residents are concerned about the financial burden these taxes will impose. They argue that these increases will lead to higher costs for services, including construction contracting and lodging.
Legal Concerns and Opposition
The lawsuit, filed by the Goldwater Institute on behalf of the Home Builders Association of Central Arizona (HBACA) and a local property owner, argues that the new taxes are illegal. According to the Arizona Constitution, taxes on services, including those for hospitality and construction, are prohibited.
“This tax hike makes it all the more difficult to make ends meet in Gilbert,” said Jonathan Barth, a local teacher and father. Barth also rents out a private bungalow for short-term stays and is concerned about the impact on his rental income.
Jackson Moll, CEO of HBACA, criticized the tax increases, saying that Gilbert officials are disregarding both the law and the consequences for residents. He emphasized that the Constitution bars such taxes for a reason.
Broader Implications for Arizona
The lawsuit against Gilbert is part of a larger effort by the Goldwater Institute to challenge local government actions across Arizona.
Recent cases in Phoenix, Tucson, and Tempe have seen similar lawsuits against tax hikes and other restrictive measures. The Goldwater Institute aims to hold local governments accountable and protect taxpayers’ rights.
Future Developments
As the lawsuit progresses, Gilbert’s new taxes could face significant delays or changes. The outcome may set a precedent for other local governments in Arizona, particularly when it comes to the legality of tax hikes on services.
The Goldwater Institute remains committed to ensuring that officials adhere to constitutional guidelines in their decision-making.
News in Brief: Goldwater Institute Sues Gilbert Town
The Goldwater Institute has sued Gilbert over new tax hikes meant to fund infrastructure projects like pickleball courts. The lawsuit claims the tax increases are illegal under the Arizona Constitution, which prohibits taxes on services. The case may set a significant precedent for local governments across Arizona.
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