Apple fighting high property tax assessments in Santa Clara county
When it comes to disputing local tax assessments, Apple is one of the toughest companies in Silicon Valley, and the company has repeatedly clashed with Santa Clara County to cut down how much tax it needs to pay.
Much has been made in recent years of Apple's attempts to place money overseas, most notably in Ireland, in order to lower their tax bill. Now, a new report says Apple is also getting unusually aggressive about minimizing taxation, much closer to home.
Apple, according to a report in the San Francisco Chronicle, is leading a "years-long [effort] to recoup tens of millions of dollars they say they've overpaid in taxes on buildings, land, lab equipment, computers and other items" to Santa Clara County. The other major company doing so is San Mateo County-based Genentech, the biotech giant where Apple's current chairman, Arthur D. Levinson, served as CEO for many years.
At issue are disagreements between the company and the county tax assessor over the value of certain items. That amount of items has increased significantly with the opening of Apple's new Apple Park headquarters, and all of the items contained therein.
In a couple of extreme examples, according to The Chronicle, Apple valued one "cluster of properties" in Cupertino at $200, while the county believes it's worth $1 billion. Apple also assigned a $200 value to another property that the assessor believes is worth $384 million.
It is unclear if the $200 valuations are for hundreds of dollars or are in fact for $200 million. Either way, the figure still represents a lower valuation by Apple than the assessor's estimate.
Apple said in late 2017 that it had paid $35 billion in corporate income taxes in the last three years, making it the world's largest taxpayer. That number will likely drop following the passage of tax reform, but it still significantly dwarfs the amount of the disputed county taxes.
Apple is clearly doing what they can within the law to pay as low an amount of taxes as they legally can. On the other hand, the assessors believe that the company and others like it are putting their significant financial and legal resources to bear in order to outgun local governments.
Much has been made in recent years of Apple's attempts to place money overseas, most notably in Ireland, in order to lower their tax bill. Now, a new report says Apple is also getting unusually aggressive about minimizing taxation, much closer to home.
Apple, according to a report in the San Francisco Chronicle, is leading a "years-long [effort] to recoup tens of millions of dollars they say they've overpaid in taxes on buildings, land, lab equipment, computers and other items" to Santa Clara County. The other major company doing so is San Mateo County-based Genentech, the biotech giant where Apple's current chairman, Arthur D. Levinson, served as CEO for many years.
Open cases
Apple currently has 489 open cases with the Santa Clara County tax assessor, totaling $8.5 billion in property value, dating back to 2004, according to the newspaper.At issue are disagreements between the company and the county tax assessor over the value of certain items. That amount of items has increased significantly with the opening of Apple's new Apple Park headquarters, and all of the items contained therein.
In a couple of extreme examples, according to The Chronicle, Apple valued one "cluster of properties" in Cupertino at $200, while the county believes it's worth $1 billion. Apple also assigned a $200 value to another property that the assessor believes is worth $384 million.
It is unclear if the $200 valuations are for hundreds of dollars or are in fact for $200 million. Either way, the figure still represents a lower valuation by Apple than the assessor's estimate.
Local vs. national
Apple paid $56 million to the county in the tax year of 2017-'18, making it the County's largest taxpayer, although that is only in county taxes.Apple said in late 2017 that it had paid $35 billion in corporate income taxes in the last three years, making it the world's largest taxpayer. That number will likely drop following the passage of tax reform, but it still significantly dwarfs the amount of the disputed county taxes.
Apple is clearly doing what they can within the law to pay as low an amount of taxes as they legally can. On the other hand, the assessors believe that the company and others like it are putting their significant financial and legal resources to bear in order to outgun local governments.
Comments
Santa Clara also wanted to do a Head tax like a couple other places. This is where they throw on another TAX onto YOU for working. Because they don't get tax money from you working,...oh wait..... That's a clear money grab, but when wait until Apple is done building their building. You can't just movie it.
Apple should be paying their Taxes. Suck it up Apple,.. You should have known what you were getting into building your new UFO in California!!! I said it was a dumb move before you started and that hasn't changed. Now you have to pay out. Apple is always trying to underpay their Taxes everywhere.
I get it, I'd want to pay as little of my taxes that I could get away with. In this case, you were the dummy building a big, expensive UFO in a Leftest City, in a Leftest State. Now they want their Leftest Money!!! I don't feel sorry for Apple at all. They're a leftest company. They should FREELY just give out the money because Government knows how to spend your money better than you do. They want everyone doing this, except for themselves.
Socialism is for the People, not the Socialist.
EDIT: They are banned now.
Apple likes to maximize their lawsuit wins, and minimize their taxes, ripping off cities, but when Santa Clara County wants to get their far share tax income THEY'RE the ones who are greedy?
Man, the lengths the fanboys go to...
If I build a new room or garage on my house, I am punished. If I keep my lot maintained, I am punished. If I add a fresh coat of paint or new siding, I am punished. A land tax does not punish people for being successful, happy, healthy, and seeing their home become their dream.
Slumlords purposely keep their buildings filthy and in disrepair so that their taxes are lower. Meanwhile, a land tax would INCENTIVIZE improvements to property.