EDINBURG — Seven tax payers filed suit in 92nd District Court Monday charging that Leo J. Leo had made “puppets of the La Joya Independent School Board and its tax assessor The suit charged that $5 jmillion worth of property belonging to Leo and his political allies and friends, 10 per cent of all taxable property in the school district, had been left off property tax rolls. Leo, mayor of La Joya, term ed charges in the suit “‘out right lies.” “I have always paid my taxes and I have the tax statements to prove it,” he said. He called the suit a political move ‘to smear us” in preparation for school board elections in April. Named as defendants were Leo, School Board President Adalberto Esquivel of Penitas, Tax Assessor and Secretary of the Board Rene Jackson and board members Rosendo Olivarez, Alejandro Leo, Felix Flores Jr, Amadeo Hernandez, Robert Jamara and Roel Benavidez. The suit asked District Judge J.B. Alamia to halt the mailing of tax bills until allegations that all taxpayers were not being treated equally in the district could be heard. However, Alamia declined to issue the temporary order and set a hearing for Oct. 23 on the suit. Filing the action s were Cecilio Garza, Alfonso Chapa, Robert Rodriguez Jr., Mario Pena, Locadio Estrada, Romulo Benavidez Jr. and Paulino Munoz. ‘Directly involved in this case is the issue of whether or not plaintiffs and those similarly situated within the jurisdiction of the La Joya Independnnt School District are to be governed by the rule of law or whether that kind of government is to be ignored and they are governed by the rule of men, or more particularly, by one man,” the suit said. It charged that Leo was the “power structure” of the school district and “to a large degree all individual defendants are the’ political puppets and under the control of defendant Leo J. Leo. The seven taxpayers charged their property was assessed on “replacement’’ value instead of market value as required by State law. The suit, drawn up by At torney J. H. Rankin of McAllen, charged that the school board had “turned a deaf ear.... to frequent and vocal protests’’ on the issue. It said “subsequent to ap proval of the 1970 tax rolls by the board of equalization.... defendants Rene Jackson and Leo J. Lee would meet with favored taxpayers in stores and beers and further reduce the atlow of said taxpayers’ property.”