Consent 3.
Regular Board of Supervisors Meeting
County Attorney
- Meeting Date:
- 04/23/2024
- Title:
- Approve the Proposed Settlement of Large Tax Appeal in SV Mall Realty Holding v. Cochise County TX2021-000472
- 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:
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 Sierra Vista Mall Realty Holding, LLC v. Cochise County, TX2021-000472, 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 numbers 105-16-037A, 105-16-037B, 105-16-039, 105-16-040, 105-16-041D, 105-16-041E, and 105-16-044 for tax years 2021 and 2022. After inspecting the property, reviewing the taxpayer’s documentation and other market factors/comparables, the Assessor agrees that the parcels full cash values and limited property values for tax years 2021 and 2022 should be lowered. The Assessor’s recommended settlement offer is as follows:
• For tax year 2021, a reduction in full cash values and limited property values from $20,409,424 to $7,266,642.
• For tax year 2022, a reduction in full cash values and limited property values from $19,350,297 to $6,167,515.
• The assessment ratios shall remain at 18.0%, 15.0%, and 17.5%.
• The legal class shall remain at 1.12 and 2.
The subject properties reduced full cash values for tax year 2022 shall not be its full cash values for the 2023 tax year. Each party would bear their own attorneys’ fees and costs. The taxpayer has accepted the settlement offer.
• For tax year 2021, a reduction in full cash values and limited property values from $20,409,424 to $7,266,642.
• For tax year 2022, a reduction in full cash values and limited property values from $19,350,297 to $6,167,515.
• The assessment ratios shall remain at 18.0%, 15.0%, and 17.5%.
• The legal class shall remain at 1.12 and 2.
The subject properties reduced full cash values for tax year 2022 shall not be its full cash values for the 2023 tax year. 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 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 taxpayer’s favor; (2) order a larger reduction in the assessed value of the subject property; and (3) order the County to pay the Plaintiff’s fees and costs.
To BOS Staff: Document Disposition/Follow-Up:
Advise County Attorney's Office - Civil Division upon Board's approval.