Arizona Town Denied Early Out of Lawsuit Over ‘Pickleball Tax’

A trade group may proceed with its challenge to an Arizona town’s tax rate hikes intended to fund recreation projects after the state tax court declined to dismiss the case.

Gilbert, Ariz., increased its transaction privilege tax rate for transient lodging, construction contractors, and speculative builders beginning in 2025. The Home Builders Association of Central Arizona and short-term rental owner Jonathan Barth sued to bar enforcement of the increase, labeling the “pickleball tax” based on to the city’s plan to use new revenues for infrastructure improvements.

• The challengers argued in their complaint that the tax hikes violate a state constitutional ...