Yuma County property owners and local taxing districts are set to receive millions in tax refunds after the Arizona Department of Revenue (ADOR) adjusted the taxable value of San Diego Gas & Electric (SDG&E) transmission property in eastern Yuma County. The change, approved by the Yuma County Board of Supervisors on Oct. 20, 2025, follows a January state Supreme Court decision that altered how centrally assessed utility property can be valued when accumulated depreciation exceeds original cost.

Under the ADOR adjustment, the taxable valuation of SDG&E’s eastern Yuma County property for the 2024 tax year was reduced from about $103 million to roughly $36 million — a $67 million decrease that triggered refund credits to be applied to 2025 and 2026 tax bills. The move affects taxes for both the 2024 and 2025 years and prompted millions of dollars in payouts to schools, fire districts and other local taxing entities, according to local reporting and court documents.

The Arizona Supreme Court’s Jan. 31, 2025 ruling in SDG&E v. ADOR allowed negative valuations for electric transmission property in situations where accumulated depreciation exceeds the original cost of the asset, lowering SDG&E’s overall Arizona asset valuation. ADOR implemented that legal change statewide, and Yuma County’s board approved the local adjustment as part of a consent agenda action in October.

The refunds are likely to provide direct financial relief across Yuma County communities, including Yuma, Somerton, San Luis and Wellton, where households and small businesses face high living costs tied to agriculture, cross-border commerce and limited economic diversification. Local officials say the credits will stabilize household budgets and support districts coping with inflationary pressures and water shortages that have strained local farming operations.

County Administrator Ian McGaughey flagged the ruling as significant in a broader pattern of utility valuation cases affecting county revenues, noting it was the second major utility decision in two years to have local fiscal consequences. Local taxing districts are now managing the logistics of distributing refunds and applying credits to taxpayer accounts, a process expected to continue into 2026 as records are reconciled and bills are adjusted.

Officials and residents seeking more precise information about refunds and how they will be distributed are advised to consult ADOR records and county treasurer updates for district-by-district figures and timelines. Further verification of exact per-district and per-resident impacts was recommended by local observers and remains a point for follow-up reporting.

While this development will inject much-needed relief into local budgets, it also underscores the broader fiscal balancing act counties face when court rulings change tax bases. As Yuma County adjusts, residents will watch how refunds are implemented and how local services funded by property taxes — from schools to emergency services — adapt to the corrected valuations.