Oracle CEO's sweet housing tax break
Posted
Mar 27 2008, 03:18 PM
by
Kim Peterson
Oracle CEO Larry Ellison's getting a $3 million tax refund on his huge Japanese-style estate, one of the most luxurious homes in Silicon Valley. The money he's getting back would have gone to schools, cities and the county he lives in, according to the San Francisco Chronicle.
Ellison's worth about $25 billion and received a $35 million salary last year. His 23-acre estate includes an 8,000-square-foot main house, a guest house and three cottages, a gymnasium, a man-made lake and two waterfalls. You can see a picture of the home under construction by clicking here.
The county assessor's office valued Ellison's home at about $166 million in 2005, but Ellison argued it was worth only $64.7 million, according to the Chronicle. He claimed the property faces "functional obsolescence" because there's a finite market for high-end homes like his. Plus, 16th-century Japanese architecture doesn't have broad appeal. And it's expensive to maintain the home's excessive landscaping and improvements.
The assessment appeals board agreed to cut the valuation for the last three years, which means that Ellison gets a $3 million refund on property taxes paid. One school district in Palo Alto will see its annual revenue drop by up to $300,000 as a result.
What Ellison did is perfectly legal, experts say.
If it makes you feel any better, Ellison's net worth has slid about $1.8 billion today as the company's stock price has tumbled. Oracle shares are down 7% today to $19.46 after the company reported disappointing quarterly earnings yesterday.
