Taxpayers in Yuma, Arizona have paid illegal property taxes for years. Currently, the Goldwater Institute is fighting for its rights in the Arizona Court of Appeals.

The Yuma County Hospital District, a special taxable district with oversight obligations associated with Yuma Regional Medical Center, has imposed property taxes on Yuma residents for the third consecutive year without voter approval. He did so by directly requesting funding to the Yuma County Board of Supervisors, completely bypassing Yuma voters and claiming that the Board of Supervisors had no choice on the issue and had to impose taxes requested by the hospital district.

The operation was illegal. A violation of the clear requirements in Arizona law is that special tax entities, such as districts, cannot first hold special elections and impose property taxes without receiving approval from voters who want to tax them. In 2023, the Goldwater Institute filed a lawsuit on behalf of Yuma’s property owner and taxpayer Rick Ogston, seeking a refund of the illegal tax that has already been assessed, and asking the court to declare the tax illegal and unreleased.

On Thursday, Goldwater made its claim to the Arizona Court of Appeals. Staff Lawyer John Thorpe Discussed Arizona’s law was that “Crystal Clear: Taxes must be approved by voters before taxation” and hospital districts could not legally decouple voters by going to the oversight board.

The three-person review board of the Court of Appeals takes the issue under recommendation after oral discussion, with Goldwater and Ogston waiting for a decision.

John Thorpe is a staff lawyer at the Goldwater Institute.