Yuma County Taxpayer Win: Over $4 Million Refund

The Yuma County government in Arizona has agreed to return more than $4 million that was collected unlawfully from property owners over a three-year period. This decision came about after a legal battle led by the Goldwater Institute, which contested the illegal tax system in court.

This refund is referred to by the Yuma County Treasurer as “the first voluntary tax refund for taxpayer benefits in Arizona history.”

In 2023, the Goldwater Institute filed a lawsuit on behalf of Yuma taxpayer Rick Ogston to dispute the unlawful property taxes imposed by the Yuma County Hospital District. The hospital district had sought funding directly from the Yuma County Board of Supervisors, circumventing the voters, claiming the board had no option but to impose taxes. However, this approach violates Arizona law, which stipulates that any tax increase must first be approved through a public election.

The Arizona Court of Appeals reviewed the case in June. Even while the lawsuit was ongoing, the hospital district has agreed to return all illegal taxes collected from county residents, with oversight from county finance officials. It seems, importantly, that these unlawful taxes have now ceased.

This situation represents a win not just for taxpayers in Yuma County but also for all Arizonans concerned with government accountability and adherence to the law. It marks another achievement for the Goldwater Institute in advocating for Arizona taxpayers.

Earlier this year, the Arizona Department of Revenue reported that it had refunded over $30 million to businesses in Pinal County following Goldwater’s legal actions against unlawful sales taxes imposed by county officials. Furthermore, last year, the Arizona Supreme Court sided with Goldwater in a case regarding the city of Scottsdale, which was accused of violating its own procurement laws by backing a pre-selected vendor, a move that could have brought in an additional $1 million in revenue for the city.