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    • Goldwater wins appeal against .2 billion parking tax in Scottsdale
    Idaho

    Goldwater wins appeal against $1.2 billion parking tax in Scottsdale

    Madoc Meredith Posted on

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    The Goldwater Institute won the appeal in its case against Scottsdale on Monday when a jury ruled that the city misrepresented a proposed sales tax measure and ordered Scottsdale to remove the initiative from the upcoming Nov. 5 ballot.

    The tax initiative would be called Proposition 490. It would replace a voter-approved 0.2% sales tax that has been in place since 1995 and expires next June. The city had raised the tax to buy land for its McDowell Sonoran Preserve.

    Unlike the 1995 tax, Prop. 490 would impose a lower sales tax of 0.15% for the next 30 years to fund maintenance and improvements to the preserve and city parks. Scottsdale called it an attempt to “replace” the 1995 tax and “lower” taxes overall, since the new lower rate means the average Scottsdale household would pay $1.24 less in monthly taxes if passed.

    Goldwater, a libertarian think tank, called it deceptive advertising in its June lawsuit. The group argued the initiative was not an actual tax cut because citizens would pay less if they did not pass Prop. 490 and simply let the 1995 tax expire. It also said the measure was not a true extension of the 1995 tax, which expires in June 2025 anyway.

    A Maricopa County Superior Court judge dismissed Goldwater’s lawsuit in June, but three judges on the Arizona Court of Appeals said in their August 19 ruling that this was an error. The panel ruled that Scottsdale’s description of the initiative was flawed and ordered the city to remove Proposition 490 from the November ballot.

    “The city’s description of the measure fails to properly set forth the primary provision of the proposal – that a new tax is being created – and the substantive changes effected by a no vote, rendering the approved ballot language misleading,” the appellate judges wrote in their decision.

    The crux of the opinion is that Scottsdale has not explained what would change if residents voted “no” on the measure, which would mean the complete elimination of the parking tax.

    Goldwater hailed the decision as a victory for taxpayers across the state.

    “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 the government,” Goldwater spokesman Joe Setyon wrote in a statement Monday.

    “Local politicians in Scottsdale and across Arizona should take heed: Officials should not be tasked with deceiving taxpayers into voting for a tax increase.”

    Although the ruling includes an order that would “prevent the city and county from placing the measure on the 2024 ballot,” it’s not clear how that would work. Cities had to complete their ballot initiatives by July 3, so there aren’t usually any changes to the ballot at that point in the election cycle.

    Scottsdale can also appeal Monday’s decision to the Arizona Supreme Court, but that creates even more uncertainty because it is unclear whether the decision can be made in time to influence the November vote.

    Scottsdale did not immediately comment on the ruling to The Arizona Republic on Monday, nor did it say whether the city plans to appeal the decision to the Arizona Supreme Court.

    If Proposition 490 does indeed appear on the ballot and receives voter approval, it would raise about $1.15 billion over its 30-year lifespan. The specific spending breakdown for that money would be:

    • 51% for replacing “capital assets” in the city’s parks, such as playground equipment and irrigation systems.
    • 14% for more maintenance staff and contracts to “improve park maintenance.”
    • 7% for the Police Park Ranger program to increase enforcement of city rules in the parks.
    • 18% for conservation efforts and maintenance of things like trailheads within the preserve.
    • 10% for the fire brigade to fight and prevent forest fires in the nature reserve.

    Reporter Sam Kmack covers Tempe, Scottsdale and Chandler. Follow him on X @KmackSam or contact him at [email protected].

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    Madoc Meredith
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