Don’t Invent Illegal Taxes to Pay for Pickleball

Government officials in Gilbert, Ariz., are attempting to increase taxes on their citizens in violation of the Arizona Constitution. And though town officials claim it’s for “critically needed infrastructure,” the taxes would actually be funding everything from pickleball courts to splash pads.

This week, the Goldwater Institute sent a letter to the town council urging councilmembers not to adopt the new taxes.

Town officials have proposed raising the sales tax for all goods and services sold in Gilbert; hiking the bed tax for all hotel, motel, and short-term rental properties; and adding a brand-new use tax for online vendors who do less than $100,000 of sales in Arizona each year. They claim “time is of the essence” to impose these new taxes, which will fund “critical infrastructure projects” including pickleball courts, splash pads, and a “statement” bridge. But the burden of the tax increases will fall hardest on Gilbert residents who, along with area businesses and visitors, must actually pay them.

They’re also illegal under the Arizona Constitution. The state constitution does not allow any new taxes or tax increases on “services”—a broad term that encompasses many types of businesses that do not produce tangible goods, including hospitality businesses.

Gilbert has recently made other dubious decisions when it comes to the rights of its citizens—recently passing an ordinance that encourages neighbors to snitch on one another for unsightly backyards.

Gilbert is far from alone when it comes to municipal government overreach—but the Goldwater Institute is holding local governments across the state accountable when they overstep their authority. Recently in Phoenix, Tucson, and Tempe, Goldwater was able to halt restrictive “prevailing wage” mandates that force regulations and bureaucratic red tape down businesses’ throats. Goldwater also filed a lawsuit against the town of Payson to hold officials accountable for bypassing democratic accountability when they abused their emergency powers to take on $70 million of debt without giving the people a say.

Local municipalities continue to trample on individuals’ rights with no regard for the effects their actions will have on taxpayers. But local government officials are public servants who ought to represent the interests of the community—not violate their rights.

You can read our letter here.

Stacy Skankey is a Staff Attorney at the Goldwater Institute.