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To: Jon Koplik who wrote (64)	7/10/2001 11:42:50 PM
From: Jon Koplik	Read Replies (1) \| Respond to of 186

AP News - L.A. County Wants to Tax Satellites July 10, 2001 L.A. County Wants to Tax Satellites By THE ASSOCIATED PRESS Filed at 9:53 p.m. ET LOS ANGELES (AP) -- The Los Angeles County assessor wants to extend its reaches to space by collecting property taxes on at least eight satellites owned by Hughes Electronics Corp. The satellites, parked 22,300 miles above the equator, are worth as much as $100 million each to the company, which is based in the county. Their potential tax value to the county has not yet been determined. ``Under case law, personal property, as opposed to real estate, is taxable where it's located or, if it doesn't have a permanent location, it's taxable at the domicile of the owner,'' said Los Angeles County Assessor Rick Auerbach. Virginia Beach, Va., had taxed the Fox Network $120,000 a year for satellite transponders used by its Family Channel between 1995 and 1998. A judge last year ordered the city to return the money, saying the property was outside the city's jurisdiction. The eight satellites were operational between 1991 and 1994 and the assessor wants to tax them retroactively. The county may also try to tax others launched since then, Auerbach said. The county was dealt a setback on Tuesday, when the state Board of Equalization voted to fast-track a new rule exempting satellites from taxation. Auerbach said he would consider taking the issue to court. Hughes officials, upset by the assessor's move, applauded the board's vote. ``It makes good common sense. These spacecraft are not in the state of California, they've never been in the state of California -- certainly during their useful lives -- and never will be in California,'' said George Jamison, a Hughes spokesman. ``And, it's important to point out, they will never receive any benefit or protection from the state of California. They're not even over the state of California.'' Brian Paperny, Hughes vice president of taxes, told the Los Angeles Times that the company's executives are ``very concerned with the concept of a tax being assessed on a stationary object 22,300 miles away from the Earth ... far away from Los Angeles County and the borders of California.'' Fred Vance, a national director in Deloitte & Touche's property tax department, said he has clients who would consider moving their corporate headquarters from California to avoid paying tax on satellite equipment. Copyright 2001 The Associated Press