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San Jose Mercury News, Calif., James J. Mitchell Column.(Knight Ridder/Tribune Business News)

Knight Ridder/Tribune Business News

| January 07, 2001 | Mitchell, James J. | COPYRIGHT 1999 Knight-Ridder/Tribune Business News. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Jan. 7--SAN JOSE, Calif.--IBM, COUNTY LOCKED IN TAX BATTLE: You'd think the current court battle between IBM and Santa Clara County over about $10 million in property taxes would be simple. Was IBM over-assessed, or wasn't it?

But the dispute is much more complicated and involves legal intricacies as Byzantine as those governing dimpled ballots and hanging chads.

There also are important issues beyond the disagreement's well-publicized potential impact on local schools. Many of these questions will remain even after Santa Clara County Superior Court Judge Joseph F. Biafore decides the case, which he is expected to do within the next few weeks.

International Business Machines Corp., the second-largest taxpayer in Santa Clara County, is an outspoken backer of strong schools. Is it being hypocritical, since a victory in this case would hurt many schools, particularly those in the Oak Grove School District of South San Jose? Is the company trying to twist the law in an unfair manner?

How much would local schools be harmed if IBM wins the case? Did the Oak Grove School Board and County Assessor Larry Stone go too far in politicizing this issue and criticizing IBM and its CEO, Lou Gerstner?

Is Stone, as critics contend, more interested in…

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