Cochise County board ends collection of jail district excise tax; tax to stop July 31 pending processing

The Cochise County Jail District board of directors voted unanimously June 3 to end collection of the Cochise County jail district excise tax and to send the required notice to the Arizona Department of Revenue so the tax can stop on July 31, 2025 at 11:59 p.m., pending the department's processing.

The resolution, JD25-02, was moved by Supervisor Madeline Gomez (District 2) and seconded by Supervisor Antonori (District 3). Gilman, the clerk, told the board that the Department of Revenue requires 60 days' notice to notify businesses and point-of-sale systems, and that staff would send the resolution to the department after the meeting.

The vote ends a contested period for the jail district tax that was the subject of litigation and a settlement agreement. Gilman said the resolution implements the settlement'related directive and the Department of Revenue's timetable for stopping collection. The board also approved two consent items for the jail district earlier in the meeting by unanimous vote.

Why this matters: The jail district excise tax had been the focus of a court challenge and public concern about whether the district and its related sales tax were established in compliance with state law. The board's action sets a firm administrative date for stopping the tax while leaving open a new election process ordered under the settlement and court approval.

Public comments at the start of the jail district agenda item raised several concerns the board addressed in discussion and said would be considered in upcoming steps. Kim Depew of Sierra Vista asked why the district could not be dissolved and how funds already collected would be handled, and urged the board to specify an end date in the resolution so the district could not be reopened. "The district was authorized because the excise tax was approved by voters. How can the district exist if that taxing approval has been declared illegitimate?" Depew asked.

Kara Harris, a Whetstone resident, urged an audit of funds collected to date and said she would work to defeat a lifelong tax on future generations. "I will do everything in my power to defeat a lifelong tax on my children and my grandchildren," Harris said, asking the county to account for where tax dollars already collected have gone.

Board discussion and next steps: Board members and staff explained that the decision to proceed with a new election followed the terms of the settlement with plaintiffs in the litigation and a superior court ruling addressing signature and referral issues. A county representative summarized three points from settlement discussions: (1) both superior and appellate courts had addressed the contested signature rule related to special-district statute provisions; (2) attorneys negotiating the settlement agreed that the number of votes in the May election was sufficient to meet petition-signature requirements had signatures been requested; and (3) part of the settlement and judge-approved dismissal required a new election.

Supervisor Gomez said the board is not opposed to building a new jail but disagreed on how to pay for it and that, if a jail were authorized, construction would still take years. The board directed staff to transmit the resolution to the Arizona Department of Revenue for processing and said it would prepare and solicit public input on ballot language for the upcoming election; the board also indicated it would consider a future county resolution requiring petition signatures for local ballot referrals to avoid similar confusion.

The motion to adopt Resolution JD25-02 passed unanimously. The clerk confirmed the board will send the resolution to the Arizona Department of Revenue; the department's 60-day notice requirement is the reason the resolution sets July 31 as the end date for collection.

The meeting adjourned; the board noted its regular board meeting would follow immediately.