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  • Supervisors agree to loan South Tucson $1.1 million to settle lawsuit

    Jul 03, 2019 | Read More News
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    The Pima County Board of Supervisors July 2 voted 3-2 to loan the city of South Tucson $1.1 million to settle a lawsuit brought by South Tucson property owners over a secondary property tax the City Council imposed in tax years 2011 to 2013. The tax levy was not approved by voters as required by state law.

    The county was named as a defendant in the suit because state law requires county boards of supervisors to include the tax levies and tax rates of all property taxing jurisdictions in a county in the annual property tax statements. Pima County played no role in the City Council’s decision to impose the tax.  
    The county will provide the city the funds to pay the plaintiffs in the class action lawsuit and the city will pay the county back over 20 years at an interest rate of 3.5 percent. 

    The judge in the case still needs to approve the agreement. The settlement helps the cash-strapped city resolve the years-long lawsuit. 

    For reference, the suit is Valenzuela, et al. v. Pima County et al, Case No. TX2014-000213.