Approve the proposed settlement of the Tax Appeal in San Pedro Apartments Limited Partnership, TX2012-000432 (Assessor parcel No. 107-16-001R), now pending in Arizona Tax Court, a division of the Superior Court of and for Maricopa County.

Taxpayer initially filed an administrative appeal for reconsideration of the full cash value of $3,450,000 for tax year 2013. The Assessor agreed that a reduction to $3,071,000 was appropriate. Unsatisfied with the Assessor’s reduction, the taxpayer filed a civil action in Arizona Tax Court and asked for a reduction in full cash value to no more than $1,500,000. After inspecting the property, reviewing the taxpayer’s documentation and other market factors/comparables, the Assessor agrees that the full cash value for tax year 2013 should be further reduced. The Assessor recommended a settlement offer that lowers the full cash value to $2,140,000 for tax year 2013. The taxpayer has accepted the settlement offer. Fiscal Impact & Funding Sources: Not applicable, no funding sources are required. Fiscal impact will be a slight reduction in the tax base.

Upon approval by the Board, Counsel for the County will sign a stipulation for entry of Judgment that has already been signed by the taxpayer, and will submit a form of Judgment to the Arizona Tax Court disposing of this matter pursuant to the settlement terms.

The County would be subject to continued litigation and risks an Arizona Tax Court ruling in favor of the taxpayer that would significantly reduce the assessed value of the subject property and subject the County to paying Plaintiff’s fees and expenses.

Advise County Attorney's Office - Civil Division upon Board's approval.