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Arizona Is Returning Illegally Collected Tax Money to Pinal County Businesses

January 31, 2025

Three years ago, the Arizona Supreme Court held that Pinal County leaders broke the law when they adopted a new sales tax on items costing less than $10,000. Representing a group of taxpayers, the Goldwater Institute argued that state law sets strict limits on the kids of taxes counties can impose, and those laws don’t let counties tax only low-price goods, while leaving luxury items untouched. Remarkably enough, the Arizona Department of Revenue agreed. However broad the taxing power of counties may be, Pinal crossed the line.

After that ruling, businesses in the county became eligible to have their taxes refunded, and the Department of Revenue set up a process for businesses to submit their records and request repayment. And in an official court filing this week, the department reports that, thanks to Goldwater’s legal victory, it has so far refunded $32.7 million of this illegally acquired money.

That’s great news for Pinal taxpayers, who should have the right to spend their hard-earned money as they please, and not as politicians think they should. Unfortunately, it’s unlikely that all Pinal taxpayers will get back the money they’re entitled to—for one thing, because this case involves a sales tax, state law defines “taxpayer” as the business, rather than the consumer. That means consumers won’t get back the higher cost that Pinal County politicians illegally forced them to pay.

Still, it’s good news that retailers and other businesses in the area will get their money back. Letting people keep the fruits of their labor is always a good thing.

County taxpayers are still eligible to apply for refunds until April 9, 2026. So make sure you act now!

Timothy Sandefur is the Vice President for Legal Affairs at the Goldwater Institute.

 

 

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