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MercuryNews.com

 

March 27, 2008

 

By Neil Gonzales

 

 

Oracle CEO wins property tax case

 

 

Larry Ellison just got even richer.

 

Ellison, worth $25 billion according to Forbes, challenged the San Mateo County assessment of his 23-acre Japanese-style compound in Woodside. And he won.

The reassessment will give the founder and chief executive of Oracle an estimated $3 million tax refund, said Terry Flinn, deputy county assessor.

 

That reduces funding for agencies countywide that receive property-tax revenues, Flinn said.

 

The Portola Valley School District could be hit hard, Assistant Superintendent Tim Hanretty said. Portola Valley is a basic-aid district, which means it receives most of its funding from property taxes.

 

The change in value on Ellison's property is projected to drop the district's revenue from $250,000 to $300,000 annually beginning in the 2008-09 fiscal year, Hanretty said.

 

"It's a significant chunk," he said Wednesday. "It's a permanent, ongoing reduction."

 

That money would have gone into the district's general fund, which pays for day-to-day expenses such as teacher salaries, textbooks and supplies.

 

Ellison's Octopus Holdings challenged the county's assessment of his estate, which was built based on a Japanese emperor's 16th-century country residence and features a main house, a two-bedroom guest dwelling and an artificial lake.

 

The county assessed the property at $163 million in May 2004. Octopus Holdings had it at $64 million. In December, the county Assessment Appeals Board sided with Octopus Holdings.

 

San Francisco-based attorney William Bennett, who represents Octopus Holdings, could not be reached for comment.

 

According to the board, the county failed to account for the property's "functional obsolescence," which included "the limited market appeal of 16th century Japanese architecture and grounds" and "the limited amenities of the main residential structure due to its design and layout."

 

Based on the board's ruling, the property's value is projected to be about $70 million this year - a decline from the estimated $173 million in 2007.