SCOTTSDALE, AZ (AZFamily) – An appeals court in the US state of Arizona has overturned an initiative to introduce a sales tax to replace an existing tax rate that expires in the city of Scottsdale in 2025.

A special city council meeting was scheduled for Tuesday after Maricopa County Judge Anni Hill Foster rejected the initiative, known as Prop 490, on Monday.

“Today’s decision affirms the rights of taxpayers who deserve honesty from their local officials – especially when it comes to the money that hard-working Arizonans must hand over to government,” the Goldwater Institute said in an emailed statement. “Local leaders in Scottsdale and across Arizona should take warning: Public officials should not deceive taxpayers into voting for a tax increase.”

The city did not immediately comment on the ruling.

As Arizona’s Family reported last month, the city is trying to portray the November ballot bill as a tax cut rather than a tax increase, according to the conservative political group.

The city’s website describes the ballot proposal as an opportunity to replace the current 0.20% sales tax, which expires next year, with a 0.15% sales tax.

Either way, Scottsdale’s sales tax would have been lower in 2025, but critics say the Protect and Preserve initiative is misleading. The City of Scottsdale disagrees.

So did Maricopa County Superior Court Judge Michael D. Cohen, who ruled last month that the measure would remain on the ballot. That ruling was appealed and overturned.

City officials say residents know the revenue generated will help maintain and protect public parks and improve fire and police services.

“I am disappointed that the Goldwater Institute is trying to deny this opportunity to voters who can read, understand and decide,” Scottsdale City Councilman Solage Whitehead said in July when asked by Arizona’s Family.

“If the 0.15% replacement tax rate is not approved, the city’s sales tax rate will be reduced from 1.75% to 1.55% effective July 1, 2025,” the city said in the question-and-answer portion of the ballot initiative.

Former Scottsdale Mayor Mary Manross, who supports Proposition 490 and heads the Vote Yes-Yes Scottsdale PAC, said there is still hope the proposition will be on the ballot this year.

Manross said a similar public financing initiative, Prop 491, is not affected by the ruling. Prop 491 would raise state spending limits so the city could continue to fund essential services, but would have no impact on tax rates.

“Our citizens have the right to vote on this issue. I remain confident that we can resolve this issue at the ballot box while the City of Scottsdale considers its options. But regardless of the outcome, we must move forward with Proposition 491 to ensure the quality of life in Scottsdale,” Manross said.

Arizona’s Jason Barry family contributed to this report through previous reporting.

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