Citizens Tax Committee To Oppose Jail Tax: Urges NO Vote On Prop 497

[Editor’s Note:   David Stringer is a local attorney and publisher of Prescott eNews. He serves as General Counsel for the Citizens Tax Committee]

Local commuters and radio listeners may have noticed recent road signs and radio spots opposing Yavapai County’s Proposition 497, a ballot initiative to double the Jail District Sales Tax. According to the County Elections Office, on  October 1^st  a local citizens group filed a Statement of Organization creating a Political Action Committee,  StopTheJailTax PAC. The stated purpose of the PAC is to defeat Prop 497 and stop the controversial proposal to double the jail district sales tax from the current .025 percent to .05 percent on all covered consumer goods and services purchased in Yavapai County. Similar proposals have been before the voters twice before, in 2009 and again in 2014. In both cases they were turned down by large margins.  This year Prop 497 is another opportunity for voters to have a voice in setting their own taxes.

Longtime Republican activist and former Third Vice Chair of the State Republican Party, Christopher Campbell is listed as Chairman of StopTheJailTax PAC. Joseph Nye, a Republican Precinct Committeeman and State Committeeman, is listed as Treasurer.

Also last week, the Executive Committee of the Citizens Tax Committee (CTC) voted to oppose Prop 497 and contribute financially to the StopTheJailTax PAC. The Citizens Tax Committee has been a feature of Yavapai County’s civic life since its founding in 1978. In recent years the fiscally conservative citizens group has been active in voter education and opposition to tax hikes and excessive government spending  at the city and county level.

In 2023, CTC stopped holding regular meetings due to the poor health of longtime President, and Statutory Agent, John Stevens, who passed away earlier this year. Last week the remaining Executive Committee members assembled at my law office in Prescott to name a replacement for Mr. Stevens. Kendall Melline of Dewey-Humbolt, was named President. Former CTC President, Cathy Craig was named Treasurer. Yours truly will continue as a Director and General Counsel for CTC. These officers will serve on a temporary basis until the next annual meeting in early 2027 when CTC will open to new members and select permanent leaders.

By Resolution of the current Executive Committee, all current and former members of CTC are encouraged to oppose Prop 497 and contribute financially to the StopTheJailTax PAC.  A spokesman for StopTheJailTax PAC  has informed Prescott eNews that the CTC contribution was sufficient to cover the printing costs of 4×4 road signs currently being installed around the county, and yard signs for voters opposing  the tax hike.  Additional contributions will be sought from the community.  StopTheJailTax yard signs are available by contacting the campaign committee, StopTheJailTax.com, sending an email to StoptheJailTaxPAC@gmail.com or calling 928.275.1460.

The reasons cited for opposing Prop 497 range from a fear of raising taxes at a time of price inflation and economic uncertainty to objection to what many consider to be specious arguments put forward by county politicians pushing for higher taxes. Inflation has already brought a tax windfall to the county. County Manager, Phil Bourdon, has publicly acknowledged the current .025 percent jail tax brings in an additional $1M a year for the county. Yavapai County tax revenues have never been higher and are projected to increase in 2027 without a tax hike.

In promotional literature, members of the Yavapai County Board Of Supervisors are claiming that if voters pass a higher Jail District sales tax, property taxes can be reduced. But that language does not appear in Prop 497. Taxpayers are asked to take their word for it.  A doubling of the current tax is projected to produce an additional $16 Million in new revenue next year.  But the tax hike extends for 20 years.  With economic growth and higher prices, taxpayers will pay more every year.

County politicians have pledged to cut $4M in property taxes. For one year. Our wealthy neighbors with big houses might see a small savings.  But most taxpayers, especially retirees on fixed incomes and working families will pay more in higher sales taxes than they ever save in property taxes. The property tax bill for a county homeowner is made up of two parts—the tax rate set by County Supervisors applied to the assessed value of the home.  By raising assessments, county officials can claim to have cut taxes and still collect more revenue.    Taxpayers are forewarned—a sales tax increase means paying more in taxes any way you cut it.

Another unsupported claim is that a large portion of the sales tax is paid by visitors and not by residents. It’s true that Prescott has a lot of summer visitors who fill the hotels and restaurants.  But that’s not the case for the county as a whole. The fact is the county has no reliable way of knowing how much of the total sales tax collected is paid by visitors. That information is simply not collected in any systematic or reliable way. When  you buy something at Costco or Walmart,  does the cashier ask you where you live? Common sense tells you that the overwhelming majority of sales taxes are paid by the people who live here and shop here on a daily basis.

The literature for the Yes on Prop 497 claims a jail tax hike will somehow promote public safety.   Unmentioned is that Yavapai County enjoys a relatively low crime rate. According to the most current FBI crime statistics, Yavapai County has a crime rate well below the US average and the average for the State of Arizona. The jail population in Yavapai County is down, not up. The fact is our two county jails both have surplus beds.

Sadly, to hide this state of affairs, the county resorts to jailing large numbers of people who have no connection with Yavapai County.  At any given time 20-30% of the inmates in the county jails do not reside here. Visitors sometimes commit serious crimes and are justifiably detained.  But many others are relatively low level, non-violent offenders who can’t make bond. Others have been lured to Yavapai County in sting operations and are held in jail at taxpayer expense  because they have no connections to the county and are considered a flight risk.

It may be well past time for Yavapai County voters to take a closer look at the $41 Million annual cost of running our two county jails. The StopTheJailTax PAC  makes the argument that throwing good money after bad by doubling the Jail District Sales Tax is not the answer we should be looking for.