Cochise County Jail District board ends collection of jail excise tax, sets July 31 effective date

The Cochise County Jail District board of directors unanimously adopted a resolution on June 3 to end collection of the Cochise County Jail District excise tax, with the county staff and board saying the Arizona Department of Revenue requires a 60-day notice and the tax is scheduled to stop July 31, 2025, at 11:59 p.m.

The action matters because the tax funded the jail district and because the ending follows a settlement and court proceedings that touched on whether a petition/referral process was required for the districts ballot questions. The vote clears the administrative step needed to notify the Department of Revenue and direct vendors and point-of-sale systems to stop collecting the tax.

County staff told the board the resolution implements terms of a settlement in litigation over the jail district and that the Arizona Department of Revenue requires 60 daysnotice before the department can stop collecting a locally imposed excise tax. "The tax will end on July 31, pending Board approval today," a county staff member said while presenting the resolution. Supervisor Antonori reiterated that timeline and said the department needs time to notify point-of-sale software companies and retailers.

Two members of the public spoke during the call to the public and during the jail district item. Kim Depew of Sierra Vista asked several questions about dissolving the jail district, what will happen to funds already collected and the wording of the November ballot. Depew said the district was authorized by a voter-approved excise tax and asked why the district could remain if that vote was invalidated. Kara Harris of Whetstone asked the board to order an audit of money collected so far and said she would "do everything in my power to defeat a lifelong tax on my children and my grandchildren." Both commenters also expressed distrust of how the district and ballot processes were handled.

Board members and staff discussed the legal and procedural background. County staff and legal counsel described three points: (1) the superior and appellate courts addressed the —3/5s—5 issue in relation to special-district statutes under Title 48; (2) during settlement the plaintiff (referred to in the record as Mr. LaChance) and his attorney agreed that the number of votes cast in the May election would be sufficient to meet the equivalent signature requirement had signatures been collected; and (3) the settlement and judges approval required the county to hold a new election, which eliminated the need to collect fresh petition signatures for this round.

Board members said the county plans to draft future internal policy to require petition signatures for any local ballot referral initiated at the county level, and that a work session will be scheduled to draft that resolution. Board members also said the upcoming election will not be "mail-only," addressing equal-protection concerns raised during the discussion about differing signature or voting requirements between past and current procedures.

Procedurally, Supervisor Madeline Gomez moved to adopt the resolution ending the tax (Jail District Resolution No. JD 25-02); a second was offered by Supervisor Antonori. After discussion, the board voted aye and the motion passed unanimously.

The board directed staff to transmit the adopted resolution to the Arizona Department of Revenue so the department can implement the July 31 stop-date and notify businesses. Board members said the county will develop ballot language for the new election and provide opportunities for public input before that language is finalized.

Public comments and several board remarks noted unresolved public concerns: requests for a county audit of funds collected to date (the board did not vote on an audit at this meeting), questions about whether the district could have been dissolved and how prior votes relate to the settlement, and a desire for clearer public information in the countys publicity pamphlet about the distinction between a jail district, a jail project and a lifelong sales tax. The board did not take separate action on those requests at this meeting.

The Cochise County Jail District board adjourned after the vote; the county said it will file the adopted resolution with the Arizona Department of Revenue and continue preparations for the required election and related public outreach.