AI- 8921
.
Special/Executive Session Board of Supervisors Mtg - 9:30 am
- Meeting Date:
- 09/30/2025
- Title:
- Proposed Settlement of Large Tax Appeal
- Submitted By:
- Melissa Wright, 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:
Dylan Hendel
TITLE
of PRESENTER:
of PRESENTER:
Civil Deputy County Attorney
Mandated Function?:
Source of Mandate
or Basis for Support?:
or Basis for Support?:
Information
Agenda Item Text:
Approve the proposed settlement of the Large Tax Appeal Wal-Mart Stores Inc. v. Cochise County, TX2023-000304, now pending in Arizona Tax Court, a division of the Superior Court in 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 numbers 106-46-037, 123-19-001V, and 408-31-021B for tax year 2024. Taxpayer then filed an amended civil action in Arizona Tax Court, seeking a reduction in assessed value for parcel numbers 106-46-037 and 123-19-001V for tax years 2024 and 2025. After inspecting the properties, reviewing the taxpayer’s documentation and other market factors and comparable parcels, the Assessor agrees that the parcels full cash values for tax years 2024 and 2025 should be lowered. As part of settlement, the parties have stipulated to add a full cash valuation claim for the 2026 tax year, as well. Thereby, the Assessor’s recommended settlement offer is as follows:
For tax year 2024, a reduction in full cash values as follows:
Parcel Number: 106-46-037
For tax year 2025, a reduction in full cash values as follows:
Parcel Number: 106-46-037
For tax year 2026, a reduction in full cash values as follows:
Parcel Number: 106-46-037
That, as a result of the reductions in the 2024, 2025, and 2026 full cash and limited property values of the subject properties and pursuant to the parties’ settlement agreement, defendant Cochise County shall pay to the Trust Account of Mooney, Wright, Moore & Wilhoit, PLLC, $55,243.50 towards Plaintiffs’ statutory attorneys’ fees, expert witness expenses, and taxable costs, plus interest at the legal rate payable from the date of the Stipulated Judgment until the awards are paid in full as provided in A.R.S. §§ 42-16214 and 42-1123.
Other than provided above, each party shall bear their own costs, expert witness expenses, and attorneys’ fees.
The taxpayer has accepted the settlement offer.
For tax year 2024, a reduction in full cash values as follows:
Parcel Number: 106-46-037
- From: 15,704,344
- To: $13,200,000
- From: $7,088,194
- To: $6,600,000
For tax year 2025, a reduction in full cash values as follows:
Parcel Number: 106-46-037
- From: $15,775,109
- To: $13,200,000
- From: $7,088,194
- To: 6,600,000
For tax year 2026, a reduction in full cash values as follows:
Parcel Number: 106-46-037
- From: $17,754,276
- To: $ 13,200,00
- From: $7,088,194
- To: $6,600,000
- The assessment ratios were at 16.5% in 2024 but changed to 16.0% in 2025.
- The legal class shall remain at 1.12.
That, as a result of the reductions in the 2024, 2025, and 2026 full cash and limited property values of the subject properties and pursuant to the parties’ settlement agreement, defendant Cochise County shall pay to the Trust Account of Mooney, Wright, Moore & Wilhoit, PLLC, $55,243.50 towards Plaintiffs’ statutory attorneys’ fees, expert witness expenses, and taxable costs, plus interest at the legal rate payable from the date of the Stipulated Judgment until the awards are paid in full as provided in A.R.S. §§ 42-16214 and 42-1123.
Other than provided above, each party shall bear their own costs, expert witness expenses, and attorneys’ fees.
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 properties; and (3) order the County to pay the Plaintiff’s attorneys fees and costs.
To BOS Staff: Document Disposition/Follow-Up:
Advise County Attorney's Office - Civil Division upon Board's approval.