L.A. Property Tax is Out of This World

Los Angeles County property tax assessors are attempting to go where no taxing authority has gone before - into outer space. The taxing agency wants to apply property tax rules to satellites owned by California-based Hughes Electronics. The satellites are located in a fixed position 22,300 miles over the equator. Once their use is exhausted they will not return to California but will be deposited in a waste area in space.

Rick Auerbach, Los Angeles County Assessor, has argued that Los Angeles County is eligible to tax the satellites because the satellites are owned by a California company and no other taxing authority is imposing a tax on the property.

Meanwhile, the California State Board of Equalization has approved a new rule that protects any artificial satellite that is permanently located in outer space from being subjected to property tax in California. Mr. Auerbach has indicated he will abide by the Board's vote for now, but he plans to study the legal aspects of the issue and may well take the matter to court. California stands to gain several million dollars in taxes should Mr. Auerbach have his way.

George Jamison, a spokesman for Hughes, has argued that the property tax assessment is inappropriate as California provides no protection or any other benefits for the property.

You may like these other stories...

Koskinen warns filing season could be most complicated yetImplementation of the Foreign Account Tax Compliance Act and the Affordable Care Act, combined with a tight budget and the possibility of Congress passing a late...
Accounting group pushes back against retirement age scrutinyMichael Rapoport of the Wall Street Journal reported that the American Institute of CPAs (AICPA) on Monday pushed back against federal regulators who are again...
There's still time to take advantage of last-minute, tax-saving moves for dependency exemptions. For 2014, there are bigger dependency exemptions, as well as rules that, in some cases, are dauntingly complex.The 2014...

Already a member? log in here.

Upcoming CPE Webinars

Oct 23Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.
Oct 30Many Excel users have a love-hate relationship with workbook links.
Nov 5Join CPA thought leader and peer reviewer Rob Cameron and learn ways to improve the outcome of your peer reviews while maximizing the value of your engagement workflow.
Nov 12This webcast presents basic principles of revenue recognition, including new ASU 2014-09 for the contract method. Also, CPAs in industries who want a refresher on revenue accounting standards will benefit.