Arizona Pickleball Taxes? What You Need to Know
From California to Arizona, this popular sport is sparking debate in some communities. Could you be subject to ‘pickleball taxes’?
In the last four years, the number of people playing pickleball in the United States has increased by 223.5%, to more than 36 million, based on reporting from USA Pickleball and the Association of Pickleball Players.
A cross between tennis, ping-pong, and badminton, pickleball is popular due to several factors: social nature, simplicity of rules, and relatively cheap startup costs.
But what if the cost of supporting pickleball is increasing for cities and towns?
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The sudden jump in the number of "picklers" has spiked demand. So, some communities are scrambling to build courts or enact new rules to handle the surge. Funding sometimes comes from creative sources like tax hikes or what some consider double taxation in the form of pay-to-play systems.
Maybe there’s more to pickleball than paddles, fitness, and fun. Is it time to rethink how we finance it?
Pickleball courts
A changing tax structure in Gilbert, Arizona has turned heads in recent months.
The town is looking to increase existing taxes (ranging from those on hotels to bars and restaurants) from 1.5% to 2%. Additionally, local officials reportedly would like to enact a new use tax of 2% when previously the town had none.
The taxes would be paid by residents, tourists, and online vendors.
So, what are these taxes for?
“Infrastructure needs.” This includes splash pads and yes, pickleball courts.
Local officials (including the town’s Budget Director) say the proposed taxes would “meet the residents’ current needs and future demands,” and that “there is a need to continue to provide for critical infrastructure.”
For folks who don’t play pickleball, however, these taxes for “critical” “needs” could be seen as “illegal.”
According to the Goldwater Institute, a public policy research organization, the proposed tax hikes violate the state’s constitution. The organization claims Arizona laws don’t allow “any new taxes or tax increases on ‘services’....including hospitality businesses.”
The institute sent a letter to the Mayor and town council members voicing those concerns. The Town of Gilbert provided a statement to a local news outlet, defending the legality of the sales tax increases, and reiterating that the taxes would support “critical infrastructure needs.”
The final vote on the proposed tax increases will reportedly be held toward the end of October.
Meanwhile, concerned residents have taken to social media to voice their opinions. Some commenters on Instagram generally seem opposed to some of the new proposed tax hikes, citing water bills and other taxes that are already high.
That kind of blowback might be why some other communities are enacting so-called “pickleball taxes” for players to use public parks, rather than proposing infrastructure tax hikes for all.
Do people pay to play pickleball?
The increasing demand for pickleball courts has caused some towns and cities to charge fees to use previously free park space — known to some as “pickleball taxes.”
For example, last year, the California coastal city of Santa Cruz introduced an app reservation system. The goal was to charge for pickleball court access.
Under this new charge-to-access program:
- People scan a QR code and make a reservation for anywhere between 30 to 120 minutes
- Players are charged a residential fee of $7 per hour or $8.50 per hour for non-residents
The fee, which some consider a “tax,” excludes a handful of free courts. However, a petition has been created in the local community, so far signed by 30 to 40 individuals. Some community members argue against the reservation system, claiming free courts aren't marked for pickleball. This means players need to bring their own equipment to set up for a proper game.
Yet the “pay to play” idea isn’t unique to California, and not necessarily unique to pickleball either. Older sports like tennis have had players pay to reserve courts in some states for years.
Park City, Utah charges tennis and pickleball players anywhere between $16 to $72 per hour, while Raleigh, North Carolina charges $5 per hour for tennis court time and $2 for pickleball court reservations.
But the sports may differ in how they fund courts.
Pickleball and tennis courts
In some towns, tennis courts are maintained through tax dollars. Other sources and at other places, through local or national organizations, such as the U.S. Tennis Association (USTA).
Since pickleball is a relatively recent phenomenon, most pickleball courts are paid for through:
- Federal grant programs, and state, and local governments
- Some private organizations
- Fundraising
- …and even coronavirus aid.
The United States of America Pickleball Association (USAP) is about 40 years old (compared to the USTA’s 143 years) and does not offer funding for courts, unlike the USTA.
Thus, maybe the real question is: are “pay-to-play” spaces equitable?
For areas where taxpayers are already “paying” for pickleball infrastructure through taxes, should they pay again to use those same spaces?
As the Santa Cruz community petition argues, the double taxation causes those who live in the area to “be expected to pay dozens of dollars for the right to exercise in our public park.”
The petition, which points out that the free courts aren’t marked for pickleball only, also notes that wealthier citizens can afford to pay park fees, while other community members may not be able to afford them.
'Pickleball taxes': What you can do
If you’re concerned about a “pickleball tax” coming to your community, there may be a few things you can do.
For starters, you can pay apps like Swimply to rent a private pickleball court by the hour. After all, if your city is already charging you for a public space, why not rent a private (and perhaps more well-maintained) court?
Alternatively, you could consider investing in a pickleball net and court outlines. This will allow you to practice anywhere (as long as you obey the local law and noise ordinances). Plus court outlines come in handy if your community doesn’t have pickleball facilities. A portable pickleball net with court lines typically costs around $120 to $160 on Amazon.
While a portable net may not help you pay a potential court fee at a public park, it can help you with playing in your driveway or other designated area.
But remember your tax dollars could still be spent on infrastructure regarding local pickleball courts. Pay attention to your local legislation — especially at the ballot box. Items like pickleball courts and additional funding for public parks can sometimes appear for a vote.
That way, you can worry about how your tax dollars are generally spent in your community — whether that’s on the fastest-growing sport in the U.S. or not.
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Kate is a CPA with experience in audit and technology. As a Tax Writer at Kiplinger, Kate believes that tax and finance news should meet people where they are today, across cultural, educational, and disciplinary backgrounds.
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