The town of Gilbert is consistently recognized as an outstanding community with an exceptionally high quality of life.
The town has an extraordinary track record of prioritizing fiscally prudent practices, which is evidenced by its AAA bond rating status awarded by the three major bond rating agencies. This is a distinction held by less than 100 municipalities across the country out of more than 19,000 cities, towns and villages.
While the town recognizes the role of watchdog organizations in ensuring transparency and accountability in government actions, it is equally important to respond to the claims made by the Goldwater Institute in the lawsuit and to clarify the rationale and legality behind the tax increases.
Contrary to the claims made by the Goldwater Institute in the lawsuit, the taxes are in full compliance with Arizona law and the Arizona Constitution.
Our legal team has thoroughly reviewed the relevant statutes and precedents to ensure that any tax increase and associated processes strictly adhere to the requirements of state law.
The assertion that these taxes are illegal is unfounded and misrepresents the legal framework governing municipal taxation and longstanding case law in Arizona.
For example, Goldwater Institute’s claim that the increase in the bed tax constitutes an unconstitutional tax on a service misconstrues the Arizona Constitution’s prohibition on tax increases for services.
The town of Gilbert’s first responsibility is to meet the needs of its residents and businesses. This must remain a primary focus.
The tax adjustments, including increases in sales, use and bed taxes, are essential measures to address the critical infrastructure needs of our rapidly growing community. These funds support projects that protect the quality of life for all Gilbert residents, including necessary and vital improvements to police, fire, parks and recreational facilities.
The types of projects that would be funded by these tax increases are listed on the town’s website.
It is also important to note that the tax increases are designed to distribute the financial burden equitably.
By increasing the use tax for online vendors and increasing the bed tax for visitors, we aim to reduce the impact on local residents and businesses.
This approach ensures that those who benefit from Gilbert’s infrastructure and services contribute fairly to their maintenance and long-term sustainability.
The town of Gilbert remains committed to engaging with our community, residents, and stakeholders to address any concerns and provide further clarification.
