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Arizona judge to decide if City of Scottsdale must change language in controversial sales tax ballot question

Three Scottsdale taxpayers allege the city is trying to frame a tax increase as a decrease. They sued them to fix it.
The City of Scottsdale approved some new ordinances for short-term rental properties. Here's everything you need to know.

SCOTTSDALE, Ariz. — The City of Scottsdale is accused of misleading voters into approving a ballot measure this upcoming November. Three Scottsdale taxpayers, William “Jim” Lane, Yvonne Cahill, and Susan Wood are suing the city hoping to change the ballot language.

“There's an obligation not to mislead, not to obscure anything,” said Scott Freeman, a Senior Attorney for the Goldwater Institute and attorney for the three citizens.

At issue is whether voters will approve a 0.15% sales tax rate in November, which takes effect on July 1, 2025. For the last 30 years, Scottsdale residents have been paying 0.20%. That money has been used to purchase land in North Scottsdale in the Sonoran Preserve area.

That 0.20% tax rate is set to expire at the end of June 2025. To replace it, a Yes vote would replace it with the 0.15% tax rate, equating to a drop, says the city. That money would fund improvements and maintenance to city parks and various recreational facilities, including the McDowell Sonoran Preserve and WestWorld of Scottsdale.

“So what happens is that 0.20% tax goes to zero, and then a new one, a 0.15% tax is added. That is raising your taxes, and that does not come across in the ballot language,” Freeman said.

Freeman argues the city trying to frame this ballot question as a tax decrease is a “bait and switch.”

“We're reducing this current tax. That's the language from the ballot measure. Never mind that when this new tax goes into effect, that tax will be reduced to zero automatically. They shouldn't do anything like that,” Freeman said.

In a Maricopa County courtroom Thursday, an attorney representing the City of Scottsdale said a very politically active minority is asking a judge to take away the choice from voters.

The city declined an interview to speak on defending against the lawsuit. Instead, Kelly Corsette, Communications and Public Affairs Director, said:

"The city is confident that the voters will fully understand the ballot measure as written."

The city also said “We also encourage Scottsdale residents to learn more about this November ballot issue at Scottsdale.Vote – that page includes a detailed Prop. 490 Q and A document.”

“We're hoping for a favorable court ruling, and that will send a message to other localities that when proposing these things, they need to speak plainly and directly to the voters,” Freeman said.

Maricopa County Judge Michael Gordon told both sides that he would have a written ruling on if the city is misleading voters by 3 p.m. on Friday. If he rules in favor of the Goldwater Institute and the three taxpayers, the city will have to re-draft the language on this ballot measure.

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