Legal Battle Over Gilbert Tax Increases
The town of Gilbert, Arizona, finds itself at the center of a legal dispute as it faces a lawsuit from the conservative Goldwater Institute. The conflict arises over recent tax increases, which the institute claims are unlawful.
Effective January 1st, Gilbert implemented new tax rates, despite warnings from the Goldwater Institute that these increases might breach state legislation. The crux of the legal argument is whether the tax pertains to goods or services.
In 2018, Arizona voters passed Proposition 126, a measure prohibiting municipalities from imposing or escalating taxes on services. However, ambiguity surrounds the term “services,” leading to differing interpretations. Gilbert officials have previously informed the Goldwater Institute that their interpretation of the law is incorrect.
The case now awaits a decision from the Maricopa County Superior Court. The lawsuit has been filed on behalf of a resident of Gilbert and the Home Builders Association of Central Arizona.
The plaintiffs, represented by the Goldwater Institute, are seeking a court injunction to prevent Gilbert from enforcing the new taxes.
The additional revenue from these tax increases is intended to fund public services such as safety, parks, and infrastructure projects. The Goldwater Institute has dubbed the tax hike the “pickleball tax,” highlighting its intended use for recreational facilities.
—
Read More Arizona News
