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Board warned FY26 could lose $10.8M if jail‑district sales tax stops; litigation remains unresolved
Summary
Supervisors reviewed the budget implications of ongoing litigation over the county's half‑cent jail district sales tax. Staff said suspending the tax would reduce FY26 revenues by about $10.8 million and that the county must plan for the maintenance‑of‑effort to return to the general fund if the district dissolves.
Cochise County supervisors discussed the possible fiscal impact of the county's half‑cent jail‑district sales tax at a May 14 budget work session, focusing on a litigation timeline that could change revenue projections for FY26.
County staff told supervisors that, under a scenario where the tax collection is suspended in July, the county would lose roughly $10,800,000 in FY26 sales‑tax revenue associated with the jail district. Staff described steps that…
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