• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

San Mateo County Refunds Airline Taxes

Posted on: Saturday, 10 December 2005, 09:00 CST

By Laura Ernde, STAFF WRITER

Claiming economic hardship after the double whammies of the dot- com bust and 9/11, airlines have sought tens of millions of dollars in property tax refunds from San Mateo County.

Now, county officials may be close to a settlement in the post-9/ 11 cases, which would avoid a protracted court battle.

Deputy Assessor Terry Flinn said the airlines are entitled to property tax refunds because the value of their aircraft declined after the terrorist attacks.

But the amount of the refund is still being negotiated, he said. The airlines sought $25 million in refunds for 2002, plus additional refunds every year since, although Flinn could not supply the amounts.

Talks began shortly after the terrorist attacks, involving lawyers for the airlines and the counties that host airports. San Mateo County, home to San Francisco International, is one of the largest recipients of airline property tax revenue in the state, along with Los Angeles County, Flinn said.

The parties are nearing a global settlement of the cases, which have been appealed to the county Assessment Appeals Board, he said.

The value of aircraft has been difficult to determine, especially after the industrywide downturn that followed the 9/11 attacks, county officials said.

"It's more of an art than a science," County Counsel Tom Casey said.

Immediately after 9/11, the county gave a $54,000 refund for two airplanes destroyed in the attacks that were owned by American Airlines and United.

County officials had vowed to fight further tax breaks for the airlines based on 9/11, but the state tax board ruled that airlines were entitled to make the claims.

Airlines have also demanded refunds of property taxes paid before the terrorist attacks, claiming the industry was hurt by the dot- com bust.

But county officials have balked at that request.

On Tuesday, the San Mateo County supervisors are poised to reject United Airlines' request for a $4.3 million property tax refund for 2001, pre-9/11.

That case will likely be appealed to San Mateo County Superior Court, Casey said.

Source: Oakland Tribune

More News in this Category