AI- 8348
.
Special/Executive Session Board of Supervisors Mtg - 9:00 am
- Meeting Date:
- 03/20/2025
- Title:
- Large Tax Appeal AEI National Income Property Fund VIII LP v. Cochise County, TX2024-000425
- Submitted By:
- Lara Loewenheim, 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:
Paul Correa
TITLE
of PRESENTER:
of PRESENTER:
Chief Civil Deputy County Attorney
Mandated Function?:
Source of Mandate
or Basis for Support?:
or Basis for Support?:
Information
Agenda Item Text:
Discussion, direction and possible action regarding the proposed settlement of the Large Tax Appeal AEI National Income Property Fund VIII LP v. Cochise County, TX2024-000425, now pending in Arizona Tax Court, a division of the Superior Court of and for Maricopa County.
Pursuant to A.R.S. § 38-431.03 (A)(3) and (4), the Board may go into executive session for legal advice with the attorney of the public body and to consider its position and instruct attorneys regarding the public body’s position in pending litigation.
Pursuant to A.R.S. § 38-431.03 (A)(3) and (4), the Board may go into executive session for legal advice with the attorney of the public body and to consider its position and instruct attorneys regarding the public body’s position in pending litigation.
Background:
Taxpayer filed a civil action in Arizona Tax Court, seeking a reduction in assessed value for parcel number 107-50-004A and account number R010030047 for tax year 2025. Following the appeal, the Assessor reviewed the property on 2/3/2025 and confirmed new construction based on a permit for $650,000, which included a metal awning, greenhouse, storage building, and grooming station. According to the Assessor records, the initial new construction remodel listing for the 2025 assessment roll contained errors and adjustments were made to the existing structures resulting in a lower assessed valued. The Assessor re-valued the new construction components and changes to the existing structures resulting in a reduction and submitted a recommendation for settlement on February 13, 2025.
The Assessor recommends that parcel’s full cash value and limited property value for tax year 2025 should be lowered as follows:
• For tax year 2025, a reduction in full cash value from $3,644,169 to $3,061,631.
• For tax year 2025, a reduction in limited property value from $3,083,401 to $1,131,572.
• The assessment ratio shall remain at 16%.
• The legal class shall remain class 1.12 (commercial).
Assessor shall recalculate the 2025 taxes and correct the 2025 tax roll to reflect the changes on the subject property based upon full cash value and limited property value as stated above.
In accordance with A.R.S. § 42-16002, and subject to the exceptions contained in that statute, the settlement full cash value of the Property for tax year 2025 will roll to 2026 per statute resulting in the 2026 limited property value to be $2,238,150.
Each party would bear their own attorneys’ fees and costs.
The taxpayer has accepted the settlement offer.
The Assessor recommends that parcel’s full cash value and limited property value for tax year 2025 should be lowered as follows:
• For tax year 2025, a reduction in full cash value from $3,644,169 to $3,061,631.
• For tax year 2025, a reduction in limited property value from $3,083,401 to $1,131,572.
• The assessment ratio shall remain at 16%.
• The legal class shall remain class 1.12 (commercial).
Assessor shall recalculate the 2025 taxes and correct the 2025 tax roll to reflect the changes on the subject property based upon full cash value and limited property value as stated above.
In accordance with A.R.S. § 42-16002, and subject to the exceptions contained in that statute, the settlement full cash value of the Property for tax year 2025 will roll to 2026 per statute resulting in the 2026 limited property value to be $2,238,150.
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 taxpayers’ 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.
Fiscal Impact
Fiscal Impact & Funding Sources (if known):
Not applicable, no funding sources are required. Fiscal impact will be a reduction in the tax base.