Consent 6.
Regular Board of Supervisors Meeting
County Attorney
- Meeting Date:
- 03/10/2020
- Title:
- Approve the Proposed Settlement of the Tax Appeal in De Lage Landen Financial Services v. Cochise County
- Submitted By:
- Susana Stark, County Attorney
- Department:
- County Attorney
Presentation:
No A/V Presentation
Recommendation:
Approve
Document Signatures:
BOS Signature Required
# of ORIGINALS
Submitted for Signature:
Submitted for Signature:
1
NAME
of PRESENTER:
of PRESENTER:
Christine J. Roberts
TITLE
of PRESENTER:
of PRESENTER:
Civil Deputy County Attorney
Docket Number (If applicable):
Mandated Function?:
Federal or State Mandate
Source of Mandate
or Basis for Support?:
or Basis for Support?:
Information
Agenda Item Text:
Approve the proposed settlement of the Tax Appeal in De Lage Landen Financial Services, Inc. v. Cochise County, TX2019-000694, now pending in Arizona Tax Court, a division of the Superior Court of and for Maricopa County.
Background:
Taxpayer filed a civil action in Arizona Tax Court, seeking a reduction in the full cash value on personal property account numbers P180000142 (B18-0000142) and P180000143 (B18-0000143) for tax year 2019 (solar energy equipment). In light of the statutory changes to A.R.S. § 42-11054, and after reviewing the new depreciation tables along with the taxpayer's documentation, the Assessor agrees that both personal property accounts’ full cash value for tax year 2019 should be lowered. The Assessor’s recommended settlement offer is as follows:
• On personal property account number P180000142 (B18-0000142) for tax year 2019, a reduction in full cash value from $662,002 to $19,282.
• On personal property account number P180000143 (B18-0000143) for tax year 2019, a reduction in full cash value from $421,151 to $30,276.
Assessor shall recalculate the 2019 taxes on the subject personal property accounts based upon full cash value as stated above. Each party would bear their own attorneys’ fees and costs. The taxpayer has accepted the settlement offer.
• On personal property account number P180000142 (B18-0000142) for tax year 2019, a reduction in full cash value from $662,002 to $19,282.
• On personal property account number P180000143 (B18-0000143) for tax year 2019, a reduction in full cash value from $421,151 to $30,276.
Assessor shall recalculate the 2019 taxes on the subject personal property accounts based upon full cash value as stated above. Each party would bear their own attorneys’ fees and costs. The taxpayer has accepted the settlement offer.
Department's Next Steps (if approved):
Upon approval by the Board, the parties will file the stipulated judgment and stipulation for entry of judgment with the Arizona Tax Court disposing of this matter, pursuant to the settlement terms.
Impact of NOT Approving/Alternatives:
Additional litigation for the County with the risk that the Court may: (1) rule in the taxpayers’ favor; (2) order a larger reduction in the assessed value of the subject property; and (3) order the County to pay the Plaintiffs’ fees and costs.
To BOS Staff: Document Disposition/Follow-Up:
Advise County Attorney's Office - Civil Division upon Board's approval.