TUCSON, Ariz. - Pima County has settled a lawsuit with the City of South Tucson over a secondary property tax.
In a 3-2 vote Tuesday, the Pima County Board of Supervisors voted to loan the city $1.1 million to settle the suit brought by the city's property owners.
At issue was the tax the South Tucson City council levied from 2011 to 2013. It was not approved by voters, as state law requires. The county was named as a defendant in the suit (Valenzuela, et al. v. Pima County et al, Case No. TX2014-000213) because state law requires the county to include municipal property taxes in annual statements.
South Tucson will pay the county back over 20 years at a 3.5 percent interest rate.
The judge presiding over the case will need to approve the agreement.