City of Scottsdale Prevails in Goldwater Institute Lawsuit
July 19, 2024 – The City of Scottsdale has won the lawsuit filed by the Goldwater Institute. The case, heard before the Superior Court on an expedited basis on Thursday, July 18, saw a decision initially promised by the judge for July 19. Due to a widespread system outage affecting the courts, the decision was delayed to Monday, July 22. However, at 5:31 PM on Friday, July 19, the judge announced that the City of Scottsdale prevails with the current ballot text.
The Goldwater Institute has indicated their intention to appeal the decision, which will likely delay any ballot measure beyond the July 23 deadline.
The Scottsdale City Council has an Executive Session scheduled for Monday, July 22, where they could potentially address the appeal by separating the Prop 490 text from the current sales tax, a move that could prevent the Goldwater Institute from pursuing the appeal.
Background: In 1995, Scottsdale voters approved a 30-year 0.2% sales tax to fund the purchase of Preserve land, set to expire in 2025. In April 2024, the City Council voted 5-2 to place a new 30-year sales tax of 0.15% on the ballot, intended for “parks, facilities, and the Preserve.” Councilwoman Littlefield and Councilman Graham voted ‘no.’ This new tax is projected to raise up to $1.5 billion over the next three decades. The City of Scottsdale, through various official correspondences and ballot language, describes this new sales tax as an extension and reduction of the original tax.
Allegations: The Goldwater Institute along with plaintiffs Jim Lane, Susan Wood and Yvonne Yarnell, allege that the City of Scottsdale is disseminating “objectively false or misleading information.” GI argues that because the new sales tax serves a different purpose than the expiring tax, it cannot be labeled as an extension or reduction of the existing tax. Furthermore, GI claims that the City is utilizing public resources to sway the election outcome, pointing out that the City’s election FAQs “omit key information and use rhetorical strategies designed to influence the election outcome.”
Requested Relief: The Goldwater Institute is seeking to prevent the ballot measure from being included in the November election, arguing that the misleading information and use of public resources compromise the integrity of the electoral process.
Stay tuned for updates as this legal challenge progresses and its implications for Scottsdale residents and the November ballot unfold.
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