Arizona Contractors Rally Against GOP Lawsuit Targeting Sales Tax They Could Gain From

By Staff Reporter |

The Arizona Chapter of the Associated General Contractors of America (AZAGC) has voiced strong opposition to a lawsuit filed by local Republican leaders concerning the voter-approved sales tax designated for infrastructure improvements in Maricopa County. The Maricopa County Republican Committee (MCRC) is contesting Proposition 479, a continuation of an existing half-cent sales tax that primarily funds infrastructure projects, including roads and highways. AZAGC described the lawsuit as “frivolous” and a move by “disgruntled partisans.”

MCRC initiated the legal challenge on Monday in Maricopa County Superior Court, claiming that Proposition 479 constitutes a new tax for fresh infrastructure projects rather than a mere extension of the longstanding sales tax. They argue that the measure failed to meet the 60 percent threshold necessary for new taxes, with Prop 479 collecting 59.82 percent of votes cast in a recent election.

According to records, the half-cent tax was first approved in 1985 and was most recently renewed in 2004, extending its lifespan through 2045 under the current proposition. The Maricopa Association of Governments (MAG) projected that revenues generated from this tax could reach $15 billion, adjusting for 2020 dollars. The tax allocation includes 40 percent for freeways and highways, 22 percent for arterial roads, and 37 percent for transit systems.

MAG’s estimates further illustrate the tax’s importance in managing future infrastructure demands, predicting that it would help maintain an average commute time of 30 minutes through 2050, despite the anticipated addition of 1.7 million residents and 900,000 jobs in the area. Proposition 479 aims to alleviate congestion significantly and enhance economic activity, projecting a net gain of $2.4 billion annually and supporting over 31,600 jobs.

AZAGC President David Martin expressed confidence that the courts will dismiss the lawsuit on grounds of its lack of merit. However, he noted concerns about the financial impact on taxpayers due to the unnecessary legal proceedings. Martin criticized MCRC for wasting taxpayer resources when the lawsuit was likely to fail.

“It’s hypocritical that these ‘conservatives’ insist on having tax dollars wasted defending a lawsuit that clearly will not stand up in the courts,” Martin remarked. In its defense, AZAGC highlighted the importance of the sales tax, emphasizing that all residents benefit from the infrastructure improvements funded by it, including MCRC members.

In a show of bipartisan support, Phoenix Mayor Kate Gallego and other Democratic leaders also condemned the MCRC lawsuit, characterizing it as “malignant” and “deeply flawed.” Gallego lauded the citizens of Maricopa County for recognizing the necessity of a robust transportation system, underscoring its significance beyond political affiliation.