The Goldwater Institute, the Phoenix-based conservative public policy think tank, has filed suit against the town of Gilbert on behalf of two clients, seeking to dismantle part of Gilbert’s new tax increases.
The institute, representing the Homebuilders Association of Central Arizona and an Arizona State University professor living in Gilbert, claims in its suit, filed Dec. 30, that parts of Gilbert’s sales and bed-tax increases and new-use tax are unconstitutional and asks collections to be terminated.
Gilbert Town Council voted in October to increase the sales tax on goods and services from 1.5% to 2%, institute a new-use tax of 2% on purchases from out-of-state retailers or through online transactions for vendors who do less than $100,000 in annual sales in Arizona, and raised the bed tax from 2.8% to 5%.
