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PRESS RELEASE. From the San Mateo County Assessor’s Office on March 25th, 2026.
I do not ordinarily respond to political commentary. However, because inaccurate statements have recently been made regarding the County’s settlement of long-standing property tax litigation involving Genentech, unfairly impugning the integrity of the Assessor’s Office and the dedicated public servants who work here, a factual clarification is warranted.
The settlement resolves complex litigation relating to property tax assessments for the years 2000 through 2005, conducted under the prior administration of then-Assessor Warren Slocum. The total refund is $19,875,000, including $6,183,000 in interest.
This matter involved a legitimate, good-faith dispute arising from differing professional opinions concerning highly technical valuation issues related to specialized pharmaceutical manufacturing equipment. Among the questions presented were which depreciation schedule should apply, which production costs were properly includable, and whether certain equipment had become obsolete in a rapidly changing technological environment. These were complex issues of first impression, meaning there was no established legal precedent to guide the outcome.
The record demonstrates that the Assessor’s Office acted with diligence, professionalism, and integrity throughout this process. Over the course of more than a decade, the parties participated in extensive litigation and administrative proceedings, including 13 days of evidentiary hearings before the Assessment Appeals Board. In 2016, the Board upheld the Assessor’s depreciation schedule, a methodology uniformly applied by the Assessor to all biotech firms in the county, while ruling differently on certain cost-related issues. That portion of the decision was successfully challenged by the County in Superior Court before being reversed on appeal in 2020. Related litigation concerning depreciation continued thereafter.
The record further reflects that the Assessor’s Office acted with complete transparency throughout this matter. All pleadings and legal arguments were public documents available to any interested person. The Assessor’s Office also made regular disclosures regarding potential refund liability, which were included in the County Controller’s Annual Comprehensive Financial Report (ACFR), publicly posted on the County’s website. Further demonstrating that commitment to transparency, the Assessor’s award-winning online Roll Tracker allows jurisdictions to monitor current assessed valuations for the secured assessment roll within their respective jurisdictions in real time.
The Assessor’s Office likewise met with affected jurisdictions and school districts, upon request and over the course of the litigation, to ensure they were fully apprised of potential refund liabilities and related financial impacts.
In addition, the San Mateo County Board of Supervisors was kept regularly informed throughout the litigation by County Counsel in collaboration with the Assessor’s Office. The Board reviewed, discussed, and ultimately voted unanimously to approve the terms of the settlement. Assertions now suggesting a lack of awareness or understanding are directly contradicted by the record.
It is a fundamental principle of California’s property tax system that schools are funded primarily through property tax revenues. When revenues are reduced, distributions to schools are correspondingly affected. This is neither new nor obscure. It is basic and well understood, particularly by public policymakers whose responsibilities include oversight of the County’s budget.
Under California law, all taxpayers have the right to appeal their property tax assessments before an independent Assessment Appeals Board. Genentech, like other large taxpayers with complex assets, routinely exercises this right in other jurisdictions where it owns substantial property, including Solano and San Diego counties. This matter was resolved through the ordinary legal process established for such disputes.
The San Mateo County Assessor’s Office is widely recognized as a leader in the field of property assessment, having received numerous awards at the international, national, and local levels for excellence in innovation and customer service. The dedicated professionals in this office have worked diligently over many years to ensure that all taxpayers, including Genentech, are assessed fairly, uniformly, and in accordance with the law. Their professionalism and public service should be recognized, not unfairly disparaged.
Allegations of mistakes, wrongdoing, and a lack of transparency in this matter are simply false and unsupported by the record. The facts are clear. This was a complex appraisal dispute, fully litigated, transparently managed, and appropriately resolved. Attempts to distort that reality for political purposes do a disservice to the public and to the dedicated professionals who worked on this case.
As I conclude my final term in office, I remain immensely proud of the dedicated professionals of the Assessor’s Office, their commitment to excellence, and the many innovative accomplishments this award-winning department has achieved over the years. I want to assure the people of our great County that this office remains steadfast in its commitment to fairness, accuracy, transparency, and maintaining public confidence in the integrity of the assessment process, while continuing to provide the highest level of service to the residents of San Mateo County.
San Mateo County Board of Supervisors (BoS) Agendas
The Supervisors meet on the 2nd and 4th Tuesdays of the month at 9:00am, as a hybrid meeting.
Author: mdrag
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