Action 2.
Board of Equalization Meeting
- Meeting Date:
- 10/10/2023
- Title:
- NOV Ratification of SBOE Hearing Officer Decisions
- Submitted By:
- Sharon Gilman, Board of Supervisors
- Department:
- Board of Supervisors
Presentation:
No A/V Presentation
Recommendation:
Document Signatures:
# of ORIGINALS
Submitted for Signature:
Submitted for Signature:
NAME
of PRESENTER:
of PRESENTER:
Sharon Gilman/Philip S. Leiendecker
TITLE
of PRESENTER:
of PRESENTER:
Deputy County Administrator/Assessor
Mandated Function?:
Source of Mandate
or Basis for Support?:
or Basis for Support?:
Information
Agenda Item Text:
Ratify, deny, or modify the State Board of Equalization (SBOE) Hearing Officer's decision for Notice of Value appeal hearing on docket 804, Various Ladd Properties, held on September 19, 2023 and September 28, 2023, as noted in the attached exhibit.
Background:
1. The property of John W. Ladd (the "Taxpayer"), totaling nine parcels (the "Subject Property"), was valued for Tax Year 2024 by the Cochise County Assessor (the "Assessor") at $838,951 pursuant to Arizona Revised Statutes ("A.R.S.") § 42-13051.
2. The taxpayer filed a petition pursuant to A.R.S. § 42-16105 to the Board appealing the Assessor's valuation and requested a reduction in Full Cash Value.
3. The appeal was timely filed.
4. The Taxpayer owns the Subject Property in fee. A portion of the Subject Property is controlled by a railroad operator as a railroad right-of-way. The Taxpayer asserted that this portion of the Subject Property was controlled by the railroad and that the Taxpayer was not liable for an assessment for that portion of the Subject Property contained within the railroad right-of-way.
5. Based upon uncontested testimony by both parties, the Hearing Officer found that the railroad had abandoned its rights to the right-of-way and that that parcel should be assessed to the property owner.
6. No objective evidence was offered by either party showing that the right-of-way was reported to the Department of Revenue as operating property or that it was assessed by the Department.
7. When the hearing commenced on September 19, 2023, the Assessor asserted that it had correctly valued the Subject Property for Arizona property tax purposes pursuant to A.R.S. § 42-13051 and that no change to the Assessor's Full Cash Value as noticed was warranted. The Taxpayer and the Assessor required time to collect additional evidence or to meet to review the case. The Board granted a continuance of the hearing. When the hearing resumed on September 28, 2023, the Assessor recommended a reduction in Full Cash Value. The Assessor testified that the basis for the reduction was the Assessor's determination that the right-of-way was still under the legal control of the railroad operator and that the railroad operator was responsible for property tax levied against the right-of-way, not the Taxpayer.
2. The taxpayer filed a petition pursuant to A.R.S. § 42-16105 to the Board appealing the Assessor's valuation and requested a reduction in Full Cash Value.
3. The appeal was timely filed.
4. The Taxpayer owns the Subject Property in fee. A portion of the Subject Property is controlled by a railroad operator as a railroad right-of-way. The Taxpayer asserted that this portion of the Subject Property was controlled by the railroad and that the Taxpayer was not liable for an assessment for that portion of the Subject Property contained within the railroad right-of-way.
5. Based upon uncontested testimony by both parties, the Hearing Officer found that the railroad had abandoned its rights to the right-of-way and that that parcel should be assessed to the property owner.
6. No objective evidence was offered by either party showing that the right-of-way was reported to the Department of Revenue as operating property or that it was assessed by the Department.
7. When the hearing commenced on September 19, 2023, the Assessor asserted that it had correctly valued the Subject Property for Arizona property tax purposes pursuant to A.R.S. § 42-13051 and that no change to the Assessor's Full Cash Value as noticed was warranted. The Taxpayer and the Assessor required time to collect additional evidence or to meet to review the case. The Board granted a continuance of the hearing. When the hearing resumed on September 28, 2023, the Assessor recommended a reduction in Full Cash Value. The Assessor testified that the basis for the reduction was the Assessor's determination that the right-of-way was still under the legal control of the railroad operator and that the railroad operator was responsible for property tax levied against the right-of-way, not the Taxpayer.
Department's Next Steps (if approved):
Send decision letters to the petitioners and county assessor within ten days of ratification per A.R.S. § 42-16108(D).
Impact of NOT Approving/Alternatives:
By statute, all Petitions for Review of Notice of Value must be completed by October 15, 2023. Should the Board fail to do this, Cochise County will be out of compliance.
To BOS Staff: Document Disposition/Follow-Up:
See next steps.