Consent 3.
Regular Board of Supervisors Meeting
County Attorney
- Meeting Date:
- 04/09/2024
- Title:
- Approve the Proposed Settlement of the Large Tax Appeal MBSA-SV, LLC v. Cochise County
- Submitted By:
- Luisa Cota, County Attorney
- Department:
- County Attorney
Presentation:
No A/V Presentation
Recommendation:
Approve
Document Signatures:
BOS Signature NOT Required
# of ORIGINALS
Submitted for Signature:
Submitted for Signature:
0
NAME
of PRESENTER:
of PRESENTER:
Paul Correa
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 Large Tax Appeal in MBSA-SV, LLC v. Cochise County, TX2023-000259, 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 assessed value for parcel number 105-16-027B and account number R000017439 for tax year 2024. Taxpayer submitted a proposed settlement offer on February 8, 2024. After inspecting the property, reviewing the taxpayers’ documentation and other market factors/comparables, the Assessor agrees that the parcel’s full cash value and limited property value for tax year 2024 and 2025 should be lowered, with the 2025 valuations may be subject to change pursuant to any remodeling/improvements made on or before September 30, 2024. The Assessor’s recommended settlement offer is as follows:
- For tax year 2024, a reduction in full cash value from $1,534,243 to $800,000.
- For tax year 2024, a reduction in limited property value from $1,080,588 to $800,000.
- For tax year 2025, a reduction in full cash value from $1,523,319 to $800,000. *The 2025 valuations may be subject to change pursuant to any remodeling/improvements made on or before September 30, 2024.
- For tax year 2025, a reduction in limited property value from $1,134,617 to $800,000. The 2025 valuations may be subject to change pursuant to any remodeling/improvements made on or before September 30, 2024.
- The assessment ratio shall remain at 16%.
- The legal class shall remain class 0112 (commercial).
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.