Yuma County Refunding Illegal Property Tax after Goldwater Legal Challenge

In a win for taxpayers, the Yuma County government in Arizona has agreed to refund over $4 million it unlawfully collected from property owners over three years. The government agreed to the refund after the Goldwater Institute fought its illegal tax scheme in court. 

The Yuma County Treasurer has described it as “the first voluntary tax refund for the benefit of taxpayers in the history of Arizona.” 

In 2023, Goldwater filed a lawsuit on behalf of Yuma taxpayer Rick Ogston challenging an illegal property tax imposed by the Yuma County Hospital District. The hospital district made its funding request directly to the Yuma County Board of Supervisors, bypassing voters and arguing that the board had no choice but to impose its tax. But that is a violation of a clear requirement in Arizona law that says that if a government wants to raise taxes, it must first hold an election to get voters’ approval.   

The Arizona Court of Appeals heard arguments in the lawsuit in June. 

While the case was pending, the hospital district reached an agreement to deposit over $4 million—every dollar of the illegal tax paid by Yuma residents—with the county treasurer, to be credited toward residents’ 2025–2026 property tax bills, according to court filings. The illegal tax has also been terminated. 

This agreement is a win not just for Yuma County taxpayers, but for all Arizonans who care about government accountability and the rule of law. It is just the latest victory by the Goldwater Institute on behalf of Arizona taxpayers. 

Earlier this year, the Arizona Department of Revenue reported that it had refunded more than $30 million to Pinal County businesses after Goldwater fought an illegal sales tax adopted by county leaders. And last year, the Arizona Supreme Court sided with Goldwater in a case against the city of Scottsdale, which had violated its own procurement laws by favoring a pre-selected vendor to lease its public swimming lanes even though another business would have provided the city with $1 million more in revenue.

John Thorpe is a Staff Attorney at the Goldwater Institute’s Scharf-Norton Center for Constitutional Litigation.