Sun Micro reassessment not yet resolved


The question is still open as to whether the San Mateo County Assessor's Office will reassess the four-parcel campus of Sun Microsystems at Willow Road and Bayfront Expressway in Menlo Park.

Oracle Corp. recently acquired (or merged with) Sun -- the difference is not automatically material to whether a reassessment occurs, officials said -- and a reassessment of the $355.4 million campus could boost property tax revenues for the city of Menlo Park.

Terry Flinn, a deputy assessor with San Mateo County, told The Almanac that his office has forwarded Oracle's paperwork to the Legal Entity Ownership Program at the state Board of Equalization.

Not all commercial property transfers receive this level of treatment, Mr. Flinn said. "These complex legal entity transfers, we ask the state board to look at those," he said. "They're going to review the case and let us know what to do."

Menlo Park Finance Director Carol Augustine, who in an interview said that she's been involved in municipal finance for 25 years, said she told the City Council that she has never seen a commercial property reassessed and that it is unlikely in this case as well.

"We haven't heard anything," she told The Almanac. "I thought that Oracle, of all companies, would structure their purchase or acquisition to not trigger a reassessment. ... I just have had no experience whatsoever of commercial properties being reassessed."

The board will look at two questions, said Anita Gore of the state Board of Equalization. Was there a change in control of Sun Microsystems of more than 50 percent? Was there a change in ownership?

These questions are complicated when a company's properties span more than one county, as in this case, Mr. Flinn said.

The state's opinion is not final. "If we independently see something differently, we would definitely have the opportunity to send it to our lawyers," Mr. Flinn said.

The reassessment question tends not to be as complicated for homes as it is for corporations, Mr. Flinn said. "People die, corporations don't," he added.


Like this comment
Posted by Arnie
a resident of Menlo Park: Menlo Oaks
on Jun 29, 2010 at 3:12 pm

What's being talked about here is whether or not Oracle's acquisition of the Sun property triggers a reassessment under Prop. 13 provisions. When a property is sold or acquired, the selling price becomes the new assessed value according to Prop. 13, often raising the property tax. Companies usually find ways to get around this through loopholes (the Howard Jarvis organization doesn't talk much about this). However, when regular citizens buy a used home, and then have to pay much higher property taxes than the former occupants -- well, they don't have any such loopholes that I know of!

Sorry, but further commenting on this topic has been closed.

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