Law for tax breaks near Fort Mojave Reservation ruled illegal

Thursday, July 25, 2013  

Arizona Attorney General Tom Horne issued a legal opinion against a state law that provided tax breaks for property owners who were involved in a land dispute with the Fort Mojave Tribe.

The federal government sued the landowners in 1994, claiming that their property was within the reservation. The landowners prevailed in 2009 but not all of them paid property taxes to Mohave County during the litigation.

HB 2178, which was enacted in 2012, forgave the taxes of the landowners that owed payments. And it gave refunds for those who paid, based on the premise that they weren't able to develop their property due to the litigation.

But Horne concluded that the law violates the Arizona Constitution. He said it granted tax benefits to a specific group without helping others in similar situations.

County officials support Horne's conclusion. But it might take a lawsuit in state court to resolve the issue, which involves over $450,000 in tax payments.

The land dispute case was US v. Aria.

Get the Story:
Tax refund unconstitutional (The Mohave Daily News 7/25)

Attorney General Opinion:
Re: House Bill 2178 and Gift Clauses of the Arizona Constitution (July 23, 2013)