By Matthew Holloway |

The Goldwater Institute, acting on behalf of Former Scottsdale Mayor Jim Lane, local activist Susan Wood, and AZGOP Member-at-Large Yvonne Cahill (CD1) filed a lawsuit in Maricopa County Superior Court against the city of Scottsdale on June 18. In the complaint, the plaintiffs allege that the city is mischaracterizing a proposed new sales tax set to be voted on by the public in November with “objectively false or misleading information.”

According to court documents, the Goldwater Institute and the plaintiffs allege that the proposed tax’s “titles and tagline text are misleading, obscure the principle provisions of the measure, and constitute a ‘bait and switch.’” They go on to explain, “The Resolution is deceptive and inherently misleading, and fundamentally unfair.”

The controversy has arisen from a 0.2% Land Acquisition Tax that was approved in 1995 which is set to expire no later than June 30, 2025, and another in 2004 at 0.15% which funded the land purchase and construction of trailheads in the McDowell Sonoran Preserve respectively and a newly proposed 0.15% sales tax that would last for 30 years to provide funds for city parks.

In the 2025 Scottsdale 0.15% Sales Tax: Questions and Answers, the new tax description claims, “The ballot proposal would replace and reduce an expiring 0.20% city sales tax with a 0.15% sales tax to provide funds solely for capital replacements and improvements at city parks and recreational facilities and additional maintenance, preservation and protection, including police and fire protection, of city parks and the McDowell Sonoran Preserve. This tax would expire after 30 years.”

As the lawsuit notes, “the New Parks & Rec Tax does not, and cannot, ‘replace’ the Land Acquisition Tax that was scheduled to expire already. And likewise, the New Parks & Rec Tax “does not, and cannot, ‘reduce’ the current Land Acquisition Tax,” which without any intervention would already be eliminated as scheduled.

The City wrote that the new tax, which it calls a “replacement tax,” would provide:

• 51% for capital asset replacements and improvements to aged Indian Bend Wash parks and other citywide parks (see further discussion of capital replacements and improvements below)
• 14% for increased citywide park maintenance including additional maintenance workers and contracts to enhance park maintenance
• 7% for the Police Park Ranger program including additional resources for enforcement and education to provide better safety and security for city parks and the Preserve.
• 18% to increase maintenance, protection, and care for the McDowell Sonoran Preserve and its desert plants and wildlife, including trail and trailhead maintenance; protecting wildlife habitat; assessing and protecting archaeological, ecological, and cultural resources; and removing invasive plants to reduce wildfire risk (known as fire fuel mitigation)
• 10% for the Fire Department wildland fire fuel mitigation program with additional resources to remove/reduce overgrown plants and weeds around the Preserve and in city open spaces that pose ongoing wildfire risk during dry summer months, and additional Fire Department resources including technical rescue teams for citywide parks and the Preserve.

Goldwater Institute spokesman Joe Seyton told the Daily Independent, “They are deceiving voters because they are claiming a tax increase is actually a tax reduction, but what they are not saying is that voters will pay a lower sales tax if they vote no than if they vote yes.” He added, “Arizona law prohibits ballot measures from communicating information that is objectively false or misleading. It’s a bait and switch.”

In a statement published by the Goldwater Institute Cahill said, “Our own city leaders are deceiving taxpayers so that we’ll vote to raise taxes on ourselves. We deserve honesty from our local officials—especially when it comes to the money hardworking Arizonans are required to fork over to the government.”

Speaking with The Scottsdale Progress, Mayor David Ortega lashed out at his predecessor saying, “It is sad that former Mayor Jim Lane, who saturated our city with 23,689 apartments during his tenure, now tries to stop citizen-driven renewal of our 48 city parks, the Green Belt and protection of the McDowell Sonoran Preserve.” He continued, “Adding new Police, Fire and Park Ranger personnel for our safety is also a key element of the ballot measure. In Scottsdale, we value our treasured open space legacy, and commitment to pass them on in great shape to future generations.”

The mayor continued, “Lane and opponents failed to show up during  months of deliberations, so we will see them in court.”

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.