The Goldwater Institute is suing the Town of Gilbert for raising taxes to fund everything from pickleball courts to splash pads on the backs of residents struggling with the rising cost of living.
The Goldwater Institute says the tax is not only unfair, it’s illegal.
On Tuesday, the Goldwater Institute sued Gilbert, on behalf of the Home Builders Association of Central Arizona and a local property owner, for disregarding the Arizona Constitution.
In October 2024, the Gilbert Town Council voted to raise the sales tax for all goods and services sold in Gilbert; hike the bed tax for all hotel, motel, and short-term rental properties; and add a brand-new use tax for online vendors who do less than $100,000 of sales in Arizona each year.
Officials claimed “time is of the essence” to impose these new taxes, which will fund “critical infrastructure projects” including pickleball courts, splash pads, a ropes course, and a “statement” bridge. But, according to the Goldwater Institute, “the burden of these increased taxes will ultimately fall hardest on Gilbert businesses and consumers, raising the prices of services like construction contracting and lodging. The hospitality industry will be hit hardest, with both the sales and bed tax meaning prices will rise for hotels and residential short-term rentals.”
“This tax hike makes it all the more difficult to make ends meet in Gilbert,” says Jonathan Barth, a teacher and father of five who earns supplemental income by renting out a private bungalow attached to his home for short-term stays.
The Goldwater Institute argues that the Arizona 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, advertising, photography, utilities, and homebuilding, among others.
“The Arizona Constitution bans tax hikes on services for a reason – why are our own leaders ignoring the law?” Jonathan says.
Gilbert’s new taxes will also cause a rise in construction costs, according to the Home Builders Association of Central Arizona (HBACA). “Gilbert officials are trampling on their own constituents’ rights with no regard for the consequences their illegal actions will have on taxpayers and homebuyers,” HBACA CEO Jackson Moll says. “The Arizona Constitution is clear: increasing taxes on services, including on construction contracting, is unlawful.”
Cane them.
When one looks at the lack of decency and common sense of publicly-elected politicians one marvels at the temerity of universal suffrage as a pillar of our society and wonders if it won’t also be our downfall.
So the Gilbert Goons on the town council are in extortion mode