GILROY
– Bonfante Gardens has lost its battle with the county tax
assessor. Now the debt-ridden theme park must either accept its
imminent reassessment or sue the county.
”
We are staying the course,
”
David Ginsborg, Larry Stone, director of special programs for
county assessor, said Monday.
”
They wanted us to exempt a lot more of the property than we feel
is correct.
”
GILROY – Bonfante Gardens has lost its battle with the county tax assessor. Now the debt-ridden theme park must either accept its imminent reassessment or sue the county.
“We are staying the course,” David Ginsborg, Larry Stone, director of special programs for county assessor, said Monday. “They wanted us to exempt a lot more of the property than we feel is correct.”
That was news to Bob Kraemer, chairman of the Hecker Pass theme park’s board of directors, and Gilroy Mayor Al Pinheiro, who sits on the board.
Kraemer speculated it is “highly likely” board members would consider suing the county, but he emphasized that “we have not heard anything” from the county on this matter.
“Until we receive notification, it is all speculation at this point,” he said.
“I’m really not going to comment on anything until we get a letter,” Pinheiro said on Monday. “Obviously there will be options, and we’ll have to decide which is the best option.”
The county’s decision is the final word on the subject, Ginsborg said. The only way now for the park to fight its tax bills would be to sue the county.
“They’ve exhausted their appeal remedies,” Ginsborg said.
Kraemer agreed this was true, to the best of his knowledge.
Bonfante Gardens already has appealed the assessor’s office decision, announced in November, regarding which parts of the park should and should not be tax-exempt. The state Board of Equalization reviewed the situation and in December gave the county a recommendation that benefitted the park.
Kraemer said no one has calculated the tax difference to the park between the state and county exemptions. Nevertheless, he said, “My guess is it’s over 50 percent difference.”
The county cannot exceed the property tax exemptions set by the state. However, the county does have the right to exempt less than what the state recommends. In Bonfante Gardens’ case, the county exempted much less. Across 18 general areas of the amusement park – such as gardens, rides and gift shops – the county and state disagree on nine.
Ginsborg said he and other assessor’s staff members spent several months reviewing Bonfante Gardens’ appeal, but “it did not change our minds.
“They wanted the roller coasters exempt. They wanted the restaurants exempt. They said the restaurants were nonprofit uses.”
Bonfante Gardens was hoping to get exemption on hundreds of thousands of dollars of property taxes. The park is eligible for tax relief because it is a nonprofit corporation serving educational purposes. When nonprofits want to exercise their property-tax exemption rights, the state Board of Equalization and the county tax assessor’s office determine how much property can exist tax-free.
County staff have been reassessing the park in recent years and surely will reduce the current evaluation of $84.5 million, Ginsborg said.
“Obviously that is grossly more than the value the park has today,” Kraemer said. “Otherwise, the people who own the park would have (sold it) a long time ago.”
The park has accumulated about $2 million in unpaid taxes in its three years of operation, Kraemer said.
Bonfante Gardens is $70 million in debt, but a pending land deal would allow it to pay off all but $14 million. The paid debt would include taxes, Kraemer said.
Kraemer said the Bonfante board would not take any tax-related action for about nine months, when the land deal is expected to close. The park would then probably pay its taxes and then sue the county if board members decide to do so.
“Assuming a decision has been made by the county, nothing is going to happen from our end for a very long time,” Kraemer said.
