A superior court judge in Pima County has ruled a Tucson ordinance giving a preference to local businesses bidding for city contracts is unconstitutional.
The Goldwater Institute had challenged the ordinance claiming it violated several constitutional provisions because it discriminated among bidders for government contracts and gave some bidders a taxpayer-funded subsidy, without direct consideration in return.
The Arizona Daily Star says the Tucson City Council is expected to consider an appeal.
The Goldwater Institute argued the ordinance raised taxpayer costs by giving local companies the edge on contracts.
Tucson adopted the ordinance in 2012, to boost the local economy. Under it, local bidders got extra percentage points in the bidding process.