Tax credit challenge thrown out by U.S. Supreme Court

by David Safier

The lawsuit trying to get rid of Arizona's tuition tax credits was thrown out by the U.S. Supreme Court, which said the people bringing the lawsuit had no standing. In other words, the content of the suit wasn't discussed. It was thrown out on a technicality, 5-4, with the usual gang of conservatives in the majority.

The thrust of the lawsuit is that, not only do tuition tax credits go predominantly to religious schools — not surprising, since about 80% of Arizona's private schools are religious (about the same percentage as in other states) — but many of the STOs (School Tuition Organizations) only give scholarships to religious schools: Catholic Tuition Organization, Arizona Christian School Tuition Organization, etc.

The Arizona Constitution forbids spending tax dollars for religious purposes. But that could change. A ballot measure may be put in front of voters in 2012 to get rid of the restriction.