Property taxes in California are a nightmare. Believe me, I know. We live in a 2,200 square foot house on a 10,000 square foot lot. That adds up to more in annual property taxes than my first car was worth.
But Oracle founder Larry Ellison has come up with an ingenious solution: convince the county assessor that your property is worth less because of the design of your house.
Chris O'Brien recapped these events in his San Jose Mercury News opinion piece:
Ellison spent years building a Japanese-style estate on 23 acres in Woodside. And for several years, Ellison has been appealing the county's assessment of his property.
In a nutshell, Ellison argued that because of the estate's distinct architectural style, it's worth far less because it would be far less appealing to any potential buyer. The San Mateo County Assessment Appeals Board agreed.
The board lowered the property's assessed value from $173 million in 2007 to $69.7 million in 2008. That is expected to cut Ellison's estimated tax bill from $1.86 million in 2007 to $751,041. And as icing on the cake, the board also ruled that the county owed Ellison a $3 million refund for taxes paid since 2004.
Well, I have weeds in my yard. Who would want that? We painted the inside walls dark red and dark green - definitely a distinct style. The stucco repair on the back of my house would NOT be appealing to a new buyer. And the noisy kids next door? That should knock off a good chunk of perceived value. How about we reduce my property taxes by more than half?
At issue here is the effect on the Portola Valley School District budget. The district is facing a million dollar shortfall due to the overall loss of property tax revenue due to sagging home values, and $300,000 of that can be directly attributed to the reduction in Ellison's taxes. O'Brien calls for Ellison to fork over twice that, $600,000, to help out his local school district.
Those who've been in the valley awhile have heard the Larry Ellison stories. He doesn't exactly stand out as a man of the people, so my advice to the Portola Valley School District is don't hold your breath.
But I just might check with the Santa Clara County Tax Assessor to see if I can claim that no one will want my house because of the weeds and the noisy kids next door.