STATE BOARD OF EQUALIZATION m

STATE BOARD
m
OF EQUALIZATION
1020 N STREET, SACRAMENTO,
(P.O. BOX 1799, SACRAMENTO,
WILLIAM
M
BENNEll
F:rst D~rtnct, Kenheld
CALIFORNIA
CA 95808)
CONWAY Ii COLLIS
Second
June 6, 1986
District,
Los Angela
ERNEST J DRONENBURG,
Thwd Dartrict,
NOTICE OF PROPOSED REGULATORY ACTION
BY THE
STATE BOARD OF EQUALIZATION
RULE 463.5,
Date of Completion
of New Construction
Supplemental
Assessments
JR.
Son Dlega
RICHARD
Fourth Diict,
NEVtNS
Pasadena
KENNETH
CORY
Controller,
Socrmlento
-
DOUGLAS
Execuhve
D BELL
Secretory
No. 86/38
PUBLIC HEARING:
July
30,
1986
NOTICE IS HEREBY GIVEN that the State Board of
Equalization,
pursuant
to the authority
vested by
Section
15606 of the Government Code, and to implement,
interpret,
or make specific
Section
75.12 of the Revenue
and Taxation
Code, proposes to adopt Rule 463.5 in Title
18 of the California
Administrative
Code, relating
to
property
tax.
Notice
is further
given that a
PUBLIC NOTICE:
public
hearing
relevant
to this action
will
be held in
Room 102, Consumer Affairs
Building,
1020 N Street,
Sacramento,
California,
at 2:00 p.m., on July 30, 1986.
Any person interested
may present
statements
or
arguments orally
or in writing
at that time and place.
INFORMATIVE DIGEST:
Current
law requires
that
the county assessor
(1) appraise
newly constructed
property
at its full
cash value on the date the new
construction
is completed
and (2) place a supplementary
assessment on the supplemental
roll
for the new
(Revenue and Taxation
Code Sections
75.10
construction.
Chapter 946 of the Statutes
of 1984 (AB
and 75.11.)
effective
g/10/84,
added Section
75.12
2345, Hannigan),
It prescribes
when
to the Revenue and Taxation
Code.
new construction
shall
be deemed to be completed
for
Proposed Rule
purposes of Sections
75.10 and 75.11.
463.5 defines
"date of completion
of new construction"
It also defines
in accordance
with Section
75.12.
various
other terms for purposes of determining
such
completion
date.
-2-
ESTIMATE OF COST OR SAVINGS: The State Board
of Equalization
has determined
that the proposed change
does not impose a mandate on local
agencies or school
districts.
Further,
the Board has determined
that the
change will
result
in no direct
or indirect
cost or
savings to any State agency, any local
agency or school
district
that is required
to be reimbursed
under Section
2231 of the Revenue and Taxation
Code, or other nondiscretionary
cost or savings
imposed on local
agencies,
or cost or savings
in Federal funding
to the State of
California.
The cost impact on private
persons or
businesses
will
be insignificant.
This proposal
will
have a significant
adverse economic impact on small
businesses.
WRITTEN COMMENTS: Written
statements
or
arguments will
be considered
by the Board if received
by July 9, 1986.
July 30, 1986; they are requested
Please send comments to Janice Masterton,
Regulation
Coordinator,
at 1020 N Street,
Sacramento,
California
not
by
95814.
STATEMENT OF REASONS; EXPRESS TERMS;
RULEMAKING FILE:
The Board has prepared
a statement
of
reasons and a strike-out
and underscore
version
(express
Both of these documents
terms) of the proposed changes.
and all information
on which the proposal
is based are
available
to the public
upon request.
The rulemaking
file
is available
for public
inspection
at Room 128, 1020
N Street,
Sacramento,
California.
STAFF MEMORANDAAFTER PUBLIC HEARING OR
REVISIONS TO PUBLISHED VERSION OF THE REGULATION:
In
the event there are any staff
memoranda included
in the
rulemaking
file
after
the close of the public
hearing,
these memoranda will
be available
to the public
upon
for a period
of 15 days
request
from Mrs. Masterton
after
the public
hearing.
In the event there are any revisions
sufficiently
related
to the published
version
of the
these revisions
will
be available
to the public
rule,
from Mrs. Master-ton for a period
of 15 days before
adoption.
-3-
Following
the hearing,
the State Board of
Equalization,
upon its own motion,
or at the request of
any interested
person, may in accordance
with law adopt
the changes proposed without
further
notice.
-.-a-.--
-------
CONTENT
-_I---
1
HEARING
--
Questions
regarding
the
content
of the regulation
should be directed
to
Gordon P. Adelman,
Assistant
Executive
Secretary,
Property
Taxes, (916) 445-1516,
at 1020 N Street,
Sacramento,
CA 95814.
---
PINQUIRIES
I_-
------------e-e
Written
comments for the
Board's consideration
or
requests
to present
testimony and bring witnesses
to the public
hearing
should be directed
to
Janice Masterton,
Assistant to Executive
Secre(916)
445-6479,
at
tary,
the
same
address.
_
--I----
STATE BOARD OF EQUALIZATION
Douglas D. Bell
Executive
Secretary
.
-4-
RULE 463.5
DATE OF COMPLETION OF NEW CONSTRUCTION - SUPPLEMENTAL ASSESSMENTS
M
APPLICATION. The provisions
supplemental
Section
75) of Part
w
if
physical
date
all
0.5
pursuant
of Division
new construction
upon which
of the
is occupied
the
conditions
a notice
(1)
of
date
it
on the
paragraph
owner,
of
is available
property
and the
owner
or
within
30
days
after,
the
he/she/it
does
not
intend
to
specified
portion
(2)
conclusively
provided
(c)
for
earliest
for
or with
the
owner's
use by the
the
date
consent,
the
notifies
the
or,
property
the
owner
(1).
owner
the
either
owner
after
new construction
use if
of
of
does not
assessor
date
of
commencement
occupy
or
use
the
shall
not
intend
in writing
of
be the
to occupy
prior
construction
identified
to,
that
property
or
a
thereof.
The
date
presumed
available
be the
of
to
with
completion
satisfied,
of
(corrmencing
The date
available
paragraph
3.5
only
Code.
are
for
use the
shall
applicable
and Taxation
(1)
with
are
Chapter
Revenue
site
is
completion
or
to
use by the
in paragraph
of
be
completion
the
owner
date
if
of
upon
the
new
which
assessor
construction
the
fails
new
to
shall
construction
receive
be
is
notice
as
as defined
in
(1).
DEFINITIONS,
(1)
with
1 of the
in accordance
The
upon which
Section
section
to
new construction
or used by the
has provided
date
levied
this
DATE OF COMPLETION OF NEW CONSTRUCTION.
actual
the
assessments
of
463
Section
"Property"
means land,
improvement(s),
and mohilehome(s)
subject
5800)
1 of Revenue
of Division
to
taxation
fixtures
under
and Taxation
Part
Code.
13 (commencing
?
a
1
*
*,
.
-5
(2)
*New
constructiorP
means "new
fnc'ludes
additions
the
economics
techniques
of
through
new facilities
are
to
of
proved
reserves
of
existing
Actual
physical
or
are
463.
changes
fromfrom
in
included
included
in
new
The term
resulting
gas resulting
are not
new construction
testing
deposits,
for
alteration
mineral
of
the
new
changes
the
extraction
even
though
the
new construction
and
includes:
(A)
replacement
modernization
a
new
after,
31,
other
of
gradinq
include
do
not
a site,
activities,
cause
(C)
which
is
any
with
1985,
other
of
the
(B)
excavating
such
as seismic
substantial
physical
with
to
the
fixtures,
whether
or
whether
or not
or
substantial
(D)
not
(E)
the
the
severance
is
renovation
a
or
equivalent
fixtures
or
also
an addition
structures,
new construction;
new construction;
structures,
is
rehabilitation,
it
of
new construction"
which
the
converts
severance
of
physical
a new fixture
which
associated
1,
actual
fixture;
any fixture
fixture;
1985,
not
from
installation
March
associated
which
an existing
of
improvements
does
resulting
the
of
It
includes
land.
"New construction
or
other
the
severance
on,
the
severance
is
severance
is
on,
or
after,
associated
with
new construction.,
"New construction
not
etc)
gas
or
physical
Section
or
oil
production
compressors,
a well.
July
gas
in
oil
or new facilities
a sump, and drilling
or
as defined
reserves
or
actual
assessable.
Example:
of
from
proved-
oil
(wells,
resulting
construction"
Changes to
discoveries.
in
Construction
include:
fixtures,
construction;
(A)
or
other
(8)
resulting
the
severance
improvements
the
severance
from
actual
physical
prior
to
March
which
is
not
on,
or
after,
new construction"
1,
1985,
of
associated
March
structures,
with
1,
does
other
1985
of
new
any
-6-
improvements,
other
other
new
structures
than
severance
associated
with
construction;
which
discontinued
is
not
use of
physically
structures
. .
(C) the
severed
structures,
from
the
or
fixtures
or
property
is
prior
other
fixtures
real
which
not
associated
July
to
31,
new construction;
other
but
improvements
which
are
with
1985,
of
or
(D)
the
which
are
not
made redundant
by
..
newly
installed
or erected
Examples:
(A)
The
fixture)
as an addition
construct
ion.
(BJ
an existing
press
fixtures,
installation
to
of
existing
is also
actual
The
complete
equivalent
of
of
a
multi-level
.
constitutes
a printing
physical
a
or other
facilities
The installation
(c)
substantial
structures,
press
actual
as the
(a
physical
new
replacement
of
new construction.
renovation
new
press
improvements.
printing
of'
press
an
existing
constitutes
press
actual
to
the
physical
new
construction.
(&
physical
press
The severance
new construction
if
it
or other
new construction,
(3)
"Commencement
physical
to
any
for
the
activities
person
on the
inspecting
preparation
Such activities
excavation
temporary
improvements
of
include
of
foundation
structures.
or fixtures.
of
of
press
site
or
if
it
occurred
the
clearing
footing,
Such activities
which
means
recognizable
of
grading
fencing
also
the
include
of
March
the
which
improvements
layout
site,
the
or
actual
the
new
1, 1985.
performance
as the
land,
is
installation
in changes
installation
and
the
a fixture)
on or after
results
and are
(also
with
construction"
property
land
old
is associated
or
the
the
are
initial
or
of
visible
steps
fixtures.
of foundations,
installation
severance
of
.
of
existing
.
-7-
'Commencement
actual
construction
such
specifications,
as obtaining
obtaining
subdivision
does not
of construction*
architect
building
impact
"Commencement of construction"
which
construction.
single
parcel
for
of
shall
be determined
the
been subdivided
the
several
into
parcels
separate
be determined
or
and
filing
and will
project,
basis
of
however,
on the
property
adjacent
comprising
lots,
to
plans
variances
solely
the
construction'
basis of the
on the
zoning
on
are
on the
preparing
be determined
apparent
are
of
or
preparatory
reports.
shall
parcels
purposes
shaT1
part
and
Where several
construction
any
occur
activities
services,
permits
maps or environmental
activities
include
the
new
be treated
the
the
unit.
the
commencement
of
undergoing
as
which
of
occur
on
Where a property
occurring
a
commencement
activities
activities
basis
of
has
construction
on each
separate
lot.
(4)
thereof,
"Available
has
been
governmental
when
obligations.
use"
inspected
official
procedures,
exist
for
and
or,
the
in
prim
are
constructed
not
utilized
property
indicate
it
avallable
for
is
is
that
approved
for
the
absence
contractor
When inspection
but
means
and
available
immediately
use when all
testing
procedures
the
necessary
is
are
not
purpose
for
or
the
portion
appropriate
and
approval
contractual
non-existent
involved,
or
the
appearances
newly
clearly
Fixtures
intended.
proper
a
the
inspection
use when outward
for
by
aT1 of
contractor
for
usable
such
fulfilled
approval
and a prime
property,
occupancy
of
has
the
operation
or
are
safety
is
completed.
New construction
available
the
for
property
physical
use,
is
impediment
it
not
is not
available
cannot
be functionally
available
to functional
for
for
use
use if,
on the
used or
until
use or occupancy
the
date
it
is otherwise
occupied.
In that
date
any
that
is removed.
legal
easel
or
If
will
a structure
have
means
improvements
that
point
improvements,
of
who
is
in
to
use"
case
of
fixtures
"available
is ready
(6)
by the
such
for
or
occupancy
any
or
or
used"
occupancy
or
use of
occupancy or
property
is
property
to
land,
when the
a
in
larger
time
a
multistage
new
as leveling,
ready
the
new
for
use by
use.
In the
construction
when the
project,
use
such
for
such
is
for
for
ready
land
is reauired
tenant
is available
alterations
use"
and regardless
of
not
of
point
portion
for
receive
time
are
used"
is
means the
use of
incidental
the
to
includes
the
the
property
by third
use of
the
property
occupied
does
not
or
include
physical
project,
including
occupancy
property
by the
an offer
also
YJsed'8
the
rental
or
the
the
owner,
a change
lease
persons
occurs
when
for
of the
of
with
the
except
of
the
owner's
on the
earliest
date
agreed
upon
transfer
of
legal
where
ownership.
property
term
property
or
any
consent.
when
the
occupancy
of
title
to
the
as security.
(6)
can
or
physically
comnencese
part
physical
use
'Occupied
The
as
at that
improvements
in time
tenant(s)
use.
"Occupied
owner
point
to
project
the
the
"available
ready
Any
tenant
physical
means that
use”
is
any tenants
new construction
added
for
fixture,
of
that
is executed,
structure
are
of
means that
the owner and no further
the
to receive
case
expectation
improvements.
portions
In the
the
a lease(s)
there
the
ready
other
for
with
when
construct
improvements.
"available
time
or not
project
though
constructed
added after
whether
construction
even
is
be used
purpose
for
on the
basis
which
affect
"Functionally
or
occupied
which
the
of
the
its
used
for
property
type
use
of
or
the
or
occupied"
purpose
for
was constructed
property
occupancy.
means that
which
or
it
shall
property
is
was constructed.
improved
and any special
Property
the
shall
facts
or
not
or
The
be determined
circumstances
be
considered
.-
<
.
c
-9-
*
"functionally
used
impediment
purpose
or
beyond the
(A)
functionally
used
property
A
to be stored
frrigation
has not
restriction
the
which
season will
(C)
completed
cannot
use of
or
the
physical
property
for
warehouse
can
the
or earth
slide,
allow
the
presumed
the
has
consent.
If
the
owner
occupancy
or
use,
failure
occupant
within
"Incidental
(8)
an activity
is
course
usual
or
or
property
or
other
includes
use of
the
property
property
or
occupancy
occupied
actual
to
or
object
a change
It
of
includes
the
in
holding
by the
for
vicinity
owner
an
can
be
the
the
under
or
such
be physically
used
of
it
with
purpose
the
by any person
an
shall
the
his
be
owner's
of
the
rights
to
of consent.
ownership"
property
as a
of
notice
enforce
the
occupied
obvious,
be evidence
of
of
agreement
is
is
because
implied
any use or occupancy
property
the
of
though
facility.
or
for
the
the
construction
constructive
to
to
even
to the
or
shall
an offer
land
disaster,
to
time
necessary
display
use or
which
access
thereof,
owner
completed
a natural
a reasonable
of business.
demonstration
if
a portion
the
farm
uninhabitable
express
received
of
is
means the
is
though
installation
to
on
public
property
even
be
months.
or
Where the
that
is
it
reasonable
or
person.
if
the
land
building
service,
consent"
grazing
several
hotel
a
completed
and
activity
used
sewer
property,
or used by a third
remove the
or
prevents
"Owner's
from
commence for
or
(7)
rebuttably
it
as
site.
leveling
improvement
office
water
use
is
at the
by
be functionallv
power,
owner to
An
arrived
converts
not
for
construction
improved
used when the
planting
regular
legal
prevents
intended
physical
Land
system
functionally
flood
any
control
building
when
(B)
of
owners'
if
intended.
Examples:-
lack
occupied"
means that
for
sale
arising
of
in
the
from
the
selling
that
same ownership.
using
the
property
It
s
-lO-
wfth
the owner's
consent,
as a temporary
storage
Use of
facility
as a model home, a sales
property
for
building
materials
office,
furnishings
or
or
intended
0
to
be installed
in other
be fncidental
property
shall
of
to
an offer
as lodging
by
be considered
this
pending
property,
the
purchase
(9)
assessment
cpalify
other
for
a change
to
or
incidental
approvil
of
an offer
"Structures"meansall
livinu
an offer
a potential
to
in
the
for
for
for
the
shall
buyer
be considered
Temporary
purpose
a change
as
of
use
sales
of
ownership.
a
principal
financing
necessary
a change
in ownership.
irqxuvments
imxovements
sale,
ownership.
buyer for
by
however,
than
t,o be held
a potential
incidental
arrangement
is not
property
subject
(trees and vines)
to
of
to
the
promotion
The use
residence
complete
the
tosupplemental
and fixtures
which
for assessmmt uursuant to Sections 75.15 and 75.16 of the Yevenue and
Taxation Cede.