By Bob Egelko : sfchronicle – excerpt
A new order by the state Supreme Court will require San Francisco to refund some of the taxes it assessed on the Westin St. Francis hotel after it was sold in 2015 — and, according to the hotel’s lawyer, will also bring millions of dollars in refunds to owners of other hotels across the state.
The court denied review Wednesday of San Francisco’s appeal of a state appellate court decision in August that found the city had overvalued the luxury hotel on Union Square by classifying some of its intangible assets, like potential income from guests for movie rentals, as taxable property.
San Francisco must now conduct a new assessment and refund the overcharges, which could amount to $1 million a year since the 2015 sale. The court’s order also means the ruling is binding on trial courts statewide, and it will apply to many transactions in other counties, said Colin Fraser, attorney for the Westin St. Francis owners.
“The most important impact of this decision is not just on this property, but that it will affect hotel evaluations for property taxes throughout the state of California,” Fraser said Thursday. He said local governments for many years have used the same method as San Francisco to assess the value of newly sold hotels…(more)
Another problem that comes with living on future projections has raised its ugly head in California. Better clue the national press in on the sad state of our economy. They are making a big mistake in hastily accepting the paid press and fancy footwork of lobbyists instead of looking at the reality that is punching us in the face. When the school board bounces checks we know there is a big problem.