San Mateo County Wins Property Tax Lawsuit Against Genentech

SAN MATEO COUNTY, CA -- County officials announced Monday that it won a $9.5 million lawsuit against Genentech, Inc. over property tax revenues. The Superior Court ruled that the County Assessor’s Office had appropriately considered certain costs when it calculated the value of Genentech’s machinery and equipment in its South San Francisco facilities, officials said.

The ruling overturned an earlier decision directing the County to refund property taxes paid by Genentech between 2000 and 2005. The result is approximately $9.5 million, including interest, of property tax revenue that may be returned to the County.

Genentech argued that in calculating the value of its machinery and equipment for property tax purposes, it was not required to include certain cost components that it did include for the property in its audited financial statements and financial statement documents included in Genentech’s federal Securities and Exchange Commission filings, officials said.

Board of Supervisors President Dave Pine called the ruling a well-reasoned decision which correctly holds Genentech accountable for its local property taxes.

“County residents should be pleased, too, because they are the ones who ultimately benefit by retaining nearly $10 million for public programs and services,” Pine said.

In San Mateo County, disputes over local property tax assessments are considered by the independent three-member Assessment Appeals Board. The Assessor challenged a ruling by that Board decided partially in favor of Genentech.

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