COUNTYWIDE : County to Challenge Cable Firms on Taxes

The Board of Supervisors, despite some reservations, authorized county lawyers Tuesday to challenge a decision that would dramatically reduce the taxes charged to a local cable television company.

That will send the matter to Superior Court, where county officials will argue that their method of assessing taxes against cable companies is legal and supported by other court cases. The cable companies, however, maintain that they are being taxed on the value of their business--not just their property--and as a result are effectively being hit with a double income tax.

Collectively, county cable companies have seen their taxes increase from $2.5 million to about $13 million a year under the new method of assessing the property, said John Gibbs, vice president of Continental Cablevision, which operates a cable system in Tustin. The companies have used a brash public relations campaign to make their point, greatly irritating some county officials.

The county assessment appeals board recently sided with American Television and Communication Corp. in its appeal of its tax bill, but a representative of the assessor’s office and county lawyers said Tuesday that the appeals board was incorrect.

County supervisors approved the lawsuit, but several expressed concern. Supervisor Roger R. Stanton, for instance, said he would support this suit but would refuse to authorize an appeal if the Superior Court rules against the county.