Goldwater Institute asks Arizona judge to stop collection of Pinal County tax

Lawyers for Pinal County taxpayers on Feb. 26 asked an Arizona judge to issue an order barring the county from collecting a transportation excise tax scheduled to go into effect in April. That tax, passed as Proposition 417 at the November election, is the subject of lawsuits brought by local citizens and small businesses represented […]

Goldwater Institute takes on Pinal County sales tax

Arizona voters in Pinal County are challenging an unconstitutional sales tax that was enacted through a misleading ballot proposal, and the Goldwater Institute is asking the Arizona Tax Court to strike it down. The tax unfairly and illegally targets everyday residents while exempting politically connected businesses, unfairly hurting taxpayers while also hindering economic development.

In November, Pinal County voters narrowly approved Proposition 417 to enact a transportation excise tax, which will finance road improvements and other developments to make the County more business-friendly. Arizona law allows counties to adopt such taxes, but requires them to tax specific things in specific amounts—including utilities, prime contracting, job printing, and pipelines. But inconsistencies between the ballot pamphlet explaining Proposition 417 and the actual language of that proposition created confusion over who and what would be affected by the proposed tax. In September, the Goldwater Institute sent a letter to Pinal County expressing concern over the discrepancies, but the County did not answer, and Proposition 417 remained on the ballot.