Surely, no laws have been broken, but does that mean NBC Universal along with California's state legislature and other multi-billion dollar corporations in LA County do not share in responsibility for devastating economic losses to the state for the past several years?
While it is becoming increasingly evident that Proposition 13 has done more harm than good for Californians, one of the many questions we seek to find the answer to is who stands to benefit from Prop 13 as it stands and how much influence do these entities have on the government that has the ability to change things.
It turns out that the net taxable value for NBC studios in Burbank in 1978 was $7,094,410. This was the value just before Prop 13 that made it so that the tax rate did not exceed 2 percent. In 1978 NBC Studios was taxed at 2.53 percent for the 3000 Alameda Ave property. The National Broadcasting Company paid $301,103.25 in property tax that year.
Interestingly enough, decades later in 2007, the property was valued $126,754,094. NBC paid $1,383,545.77 in property tax. This proving that the property was reassessed at some time within those 29 years. Why does this matter?
It has been speculated by some that Prop 13, with its many flaws, has not been revised because of crooked private company interests. At first glance, this does not seem to be the case with the two NBC Universal properties in LA County, (the Burbank lot and the NBC Universal Building in Universal City).
With property taxes not to exceed 2 percent and no reassessment without resale of the property under Prop 13, one would expect the property tax to not have changed much since 1978.
But it did, which begs the question, why was the property reassessed in the first place, if it didn't need to be?
As it stands, property values are not reassessed until there is a change in ownership. Yet for some reason, between 1978 and 2007 when the Burbank lot was under the ownership of NBC the value was reassessed.
As for the Universal City property, it was not built until 1984, six years after the proposition took effect and therefore not an issue to be investigated.
But we're not out of the water yet. The most recent tax bill from 2008, under new owner Catalina Media Development II LLC, shows a significant increase in property value and therefore the property tax. Though, NBC had not been paying the same in property taxes since 1978, the company still was saving over $1 million in property tax, which is nothing to sneeze at.
It appears, in the end, NBC comes out as the "Not so bad guys." Nevertheless, along with other corporations in Los Angeles, they are contributing to the problem. The not so simple task ahead is finding out from NBC why they received or if they are aware of their "sweetheart deal" from the government.
While it is becoming increasingly evident that Proposition 13 has done more harm than good for Californians, one of the many questions we seek to find the answer to is who stands to benefit from Prop 13 as it stands and how much influence do these entities have on the government that has the ability to change things.
It turns out that the net taxable value for NBC studios in Burbank in 1978 was $7,094,410. This was the value just before Prop 13 that made it so that the tax rate did not exceed 2 percent. In 1978 NBC Studios was taxed at 2.53 percent for the 3000 Alameda Ave property. The National Broadcasting Company paid $301,103.25 in property tax that year.
Interestingly enough, decades later in 2007, the property was valued $126,754,094. NBC paid $1,383,545.77 in property tax. This proving that the property was reassessed at some time within those 29 years. Why does this matter?
It has been speculated by some that Prop 13, with its many flaws, has not been revised because of crooked private company interests. At first glance, this does not seem to be the case with the two NBC Universal properties in LA County, (the Burbank lot and the NBC Universal Building in Universal City).
With property taxes not to exceed 2 percent and no reassessment without resale of the property under Prop 13, one would expect the property tax to not have changed much since 1978.
But it did, which begs the question, why was the property reassessed in the first place, if it didn't need to be?
As it stands, property values are not reassessed until there is a change in ownership. Yet for some reason, between 1978 and 2007 when the Burbank lot was under the ownership of NBC the value was reassessed.
As for the Universal City property, it was not built until 1984, six years after the proposition took effect and therefore not an issue to be investigated.
But we're not out of the water yet. The most recent tax bill from 2008, under new owner Catalina Media Development II LLC, shows a significant increase in property value and therefore the property tax. Though, NBC had not been paying the same in property taxes since 1978, the company still was saving over $1 million in property tax, which is nothing to sneeze at.
It appears, in the end, NBC comes out as the "Not so bad guys." Nevertheless, along with other corporations in Los Angeles, they are contributing to the problem. The not so simple task ahead is finding out from NBC why they received or if they are aware of their "sweetheart deal" from the government.
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