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Déjà Vu: Goldwater Sues—Again—Over Scottsdale’s Unconstitutional Sales Tax

Stamper v. Scottsdale

Case Status

Date Filed

May 30, 2025

Last Step

Filed complaint in Maricopa County Superior Court.

Next Step

Await response from the City of Scottsdale and the Arizona Department of Revenue.

Case Overview

Last year, the City of Scottsdale attempted to trick Scottsdale residents into approving a tax increase by calling it a tax reduction.  We sued on behalf of our clients because the ballot language the City approved was part of that bait-and-switch deception.  We won.

But then the City—highly motivated to keep its new tax measure on the ballot—changed the language at the last minute, thereby depriving citizens and the courts the opportunity review it.

By referring its tax measure to voters for approval, the City initiated a referendum.  This occurs whenever voters are asked to approve a legislative action, including measures approved by city councils.

The Arizona Constitution requires that new taxes approved through a referendum must receive broad support, more than 60% approval.  This is known as a supermajority requirement.

The City’s tax measure garnered 58% at the polls, which was insufficient to make the City’s new tax enforceable.   Yet the City insists because more than a simple majority approved its tax, its free to implement it.

Now, the Goldwater Institute is again protecting the rights of Arizona taxpayer by filing a lawsuit on behalf of Scottsdale residents who will be subject to the City’s new—and illegal—tax.  The suit asks the court to declare the tax unconstitutional and prohibit City officials from enforcing it.

Case Logistics

The case is Stamper v. Scottsdale.   The complaint and motion for preliminary injunction were filed May 30, 2025, in the Superior Court of Arizona for Maricopa County.

The Goldwater Institute represents Robert Marc Stamper and Gretchen Jacobs, dba AZ Design Group.  Each resides in and pays taxes to the City of Scottsdale and will be subject to the City’s new sales and use tax.

Defendants are the City of Scottsdale, Mayor Lisa Borowsky, Vice Mayor Jan Dubauskas, Councilmember Adam Kwasman, Councilmember Barry Graham, Councilmember Kathy Littlefield, Councilmember Maryann McAllen, Councilmember Solange Whitehead, City Manager Gret Caton, City Treasurer Sonia Andrews, each individual sued in their official capacities; Arizona Department of Revenue, and its Director Robert Woods, also served in his official capacity.

Case Documents

Stampers Verified Complaint Seeking Declaratory Injunctive Relief
Stamper's Motion for Preliminary Injunction

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