AI- 9041
.
Special/Executive Session Board of Supervisors Mtg - 9:00 am
- Meeting Date:
- 12/02/2025
- Title:
- Proposed settlement of the Small Tax Appeal in Matranga, et al. v. Cochise County, ST2025-000006
- 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:
Dylan Hendel/Phil Leiendecker
TITLE
of PRESENTER:
of PRESENTER:
Civil Deputy County Attorney/County Assessor
Mandated Function?:
Source of Mandate
or Basis for Support?:
or Basis for Support?:
Information
Agenda Item Text:
Approve the proposed settlement of the Small Tax Appeal in Matranga, et al. v. Cochise County, ST2025-000006, now pending in Arizona Tax Court, a division of the Arizona 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:
Taxpayers Patrick T. Matranga and Jung H. Matranga filed a tax appeal action in Arizona Tax Court, seeking a reduction in assessed value for parcel number 105-97-047 for tax year 2026. The Assessor reviewed the property located at 2925 Palmer Drive in Sierra Vista, AZ, a two-story residence with a guest house purchased in August 2024 for $475,000 in a short-sale transaction. As part of the review, the Assessor interviewed the real estate agent representing the seller to discuss the property’s condition and sale terms, noting that the sale occurred as part of a divorce proceeding. He also spoke with the property owner to confirm appeal details and address concerns and reviewed the home inspection and appraisal reports dated August 9, 2024, which reflected an appraised value of $508,000. Accordingly, the Assessor agrees that the parcel’s full cash value (“FCV”) and limited property value (“LPV”) for tax year 2026 should be lowered. The Assessor’s recommended settlement offer is as follows:
For tax year 2026, a reduction in FCV from $631,389 to $503,365.
For tax year 2026, a reduction in LPV from $583,858 to $429,130.
The Assessor shall recalculate and update the 2026 taxes on the subject property based upon the FCV and LPV as stated above. NOTE: The recommended FCV will remain frozen for the 2027 tax year pursuant to A.R.S. § 42-16002(A), and the LPV will be calculated pursuant to A.R.S. § 42-13301 and 42-13302.
Each party would bear their own attorneys’ fees and costs.
The taxpayers have accepted the settlement offer.
For tax year 2026, a reduction in FCV from $631,389 to $503,365.
For tax year 2026, a reduction in LPV from $583,858 to $429,130.
The Assessor shall recalculate and update the 2026 taxes on the subject property based upon the FCV and LPV as stated above. NOTE: The recommended FCV will remain frozen for the 2027 tax year pursuant to A.R.S. § 42-16002(A), and the LPV will be calculated pursuant to A.R.S. § 42-13301 and 42-13302.
Each party would bear their own attorneys’ fees and costs.
The taxpayers have accepted the settlement offer.
Department's Next Steps (if approved):
Upon approval by the Board, the parties will file 1.) the Stipulation for Entry of Judgment, 2.) Stipulated Judgment, 3.) Motion to Vacate Trial, and 4.) Proposed Order Vacating Trial 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.