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STATE OF CALIFORNIA EILLY
STATE OF CALIFORNIA EILLY First District, San Francisco 1020 N STREET, SACRAMENTO, (P-0. BOX 1799, SACRAMENTO, CALIFORNIA CALIFORNIA ERNEST J. DRONENBURG. JR. Second District, San Diego 95808) WILLIAM M. BENNETT Third District, SCIII Rafael i 916/445-6479 RICHARD NEVINS Fourth District, Pascldena July KENNETH CGRY contror1er, Sacrmnento 24, 1979 DOUGLAS D. BELL Fxecufive Secrsfary 79/125 TO COUNTYASSESSORS, COUNTYCOUNSELS, ASSESSMENTAPPEALS BOARDSAND OTHER INTERESTED PARTIES; PROPERTYTAX RULES 460-467 8 469-471 Enclosed are drafts of proposed amendments to Property Tax Rules 460-467 and 469-471 to conform the language of the rules to the provisions of Assembly Bill 1488. On August 1, 1979, at 3:30 p.m. the Board will consider adoption of these amendments on an emergency basis. Limited discussion of the rules may occur at that time. However, a public hearing will be scheduled for a later date. If you have any questions or comments regarding these proposed amendments, please contact James J. Delaney, Chief Counsel, at this address (telephone 916/445-4380). Sincerely,, Giiikk&F Calendar JM/k Clerk 1 )’ -. -0% 1 , 7/20/79 . . 5, Rule No. 460. (a) (Cal. Sections provide for for 1 and 2,0f real property by reference The foil XIII taxable to reflect taxes and a procedure value of locally full assessed cash value the inflation rate which not per year. owing definitions terms in the rules A of the Constitution to a base year annually to exceed two percent XIII on property the current is then modified (b) Article a limitation establishing GENEmI, Adm. Code) pertaining govern the construction to Sections of the 1 and 2 of Article A. . CE (1) the original which real The assessment BASE YEAR. base year. or a portion property, newly constructed, Thereafter, or a portion (2) i.he full serves as year in thereof, value is purchased, shall for is become the base such real prop- thereof. FULL CASH VALUE. (A) The full cash value Ufti33 cash vaZt2e~ as $e$&ned and 1975-76 any assessment or changes ownership year used in determining erty, year CPaxatian Code57 as of: of real in Gectien 438 property es means Chc Che ~evenae Y/20/73 The l&en dahe &R ag75-r fer 1. 0 59X-767 er "full 11011 of -as defined -in Section Aas of the lien date 1975 for Code, --_I---- cash value" --the Revenue and Taxation properties a 1975-76 base year, with -c 2. The "full ship is purchased, after shall when such real property, (B) te Geetim priate If real be determined the full to its date. Uen thereof, of which the date is purchased, than July full cash value Such reappraisals is ptirtetiaa* for appro- shall the appro- may be made at any of Section 405.6 of the' values must 1, 1980. Restricted cash value authorized FULL VALUE. cash value full Code but 1975-76 base year RESTRICTED VALUE. other then the assessor the provisions prior@ or by statute D (4) cash value has not been appraised cash value, Revenue and Taxation tion property full notwithstanding standard or changes owner- date next succeeding or portion such property base year (3) the full such real $85~5 ef the Aetrentie artd pla%atPen &Me to its reappraise time, Code as of the date -I_-- -in Section or changes ownership. base year priate date, on the lien newly constructed, -as defined is newly constructed, the 1975 lien be enrolled or - cash value" 110 of the Revenue and Taxation --Property &he base yeas value means a value prescribed by the Constitu- by the Constitution. c ~~11 value or the restricted -2- (appraised value. value) means either 4 7/20/79 l (5) full For each lien 'INFL;4TION RATE. date in which value percentage the base year of real property full value shall change in cost of living, shall the taxable (6) full not reflect value value adjusted law w-p-,. or the full is less. -f?+ the 3:ien Taxable value any given eP red prepeuty date $0~ wh&eh tke r&2 tions calculated prescribed in accordance by Section to reflect in Section that such of date. means the base year date as required date, by whichever apprepri&te&y is being tax rate the ad valorem 1 of Article XIII A o Constitution. ~~~- indexed prepared: The property with -3- the Fka&3 eaek v&:tie base meafls FBE& GASH VAM3E BA6Er -@j (7) PROPERTYTAX RATE. rate lien value-- -___-___ for the same lien the baee year v&tie the in excess of 2 percent lien for is determined, Code; provided of the preceding TAXABLE VALUE. the lien as defined an increase /pJpfj date after be modified 2212 of the Revenue and Taxation value &j -- is the tax limitathe te b fl. f? & 7/20/79 Rule No. 461. (a) (Cal. Section provides 2 of Article that real sion for (Section 462) after any transfer therefrom shall be reappraised base year. wkPek term is defined eenstitutes srcgard3ess an interest shai3 ef 8reat;h-h (b) Unless otherwise erty which was not subject immediately following (c) The prior tion thereof, year Artiek eedc~ ij as fts for at full enned prepeP the 83 the regarded Sach of the interest-; fn33 va3ne as of the in this or additional interest X3*Z 23 fb+ af this to valuation be appraised in the and pthdic~y interest of the per&d thereof, ef a pr&vate 8C is excluded pe33e39ef-y provided such as newly discovered 23 a be apsraiscd da& shall 6eetien in Sect&a: as a purchase preperty enned included or specifically The ereatien 462. occurs posses- or portion than a transfer erty sub3eet te tax mdcr Wmsthatien7 purchased, A purchase property, of change of ownership pd&&e%pi if to the use, occupancy, of real other by Section Constitution 463) or a change in ownership a prendre in nerttexab3.e reserves, A of the California or right a consideration, definition REAL PROPERTY the original of title or profit XIII property newly constructed (Section Adm. Code) chapter, real in any prior proved value oil prop- base year, and g&s on the lien date discovery. taxable physically value of real property, removed from the site -4- shall . or porbe t:’2 ;jpp-=p= 5 t-1 ‘..g j,‘+ $3 /*: ’ ; i.*.’ d ‘c 1 &J I!‘-‘-‘t ‘v “1: .f k : ” s-5 1;. *: p. B; b ;zi$ <, Ly;.;;a a -p :1 7/20/73 i deducted that from the nroperty's prior such net taxak%e value shall year taxable d value, provided The not be less than zero. adjusted -to reflect the pernet shall be -- value _II -- appro.priatcly and then compared -to the centagc change -in -the -cost -of living -current ----lien date full value -to determine taxahle value. (d) For tile tax 1Tear 197 9-80 and tax years thereafter assessor year's shall prepare taxable date full -preperty value value, an assessment roll annual eaw3&3g the assessor of -- all in value fae&ers to I3e 3ess than its such rolls reappraisal Declines indexed or the current lien - -is less the ful& eftsh va3uc kase of -- Cs t=ef&eet fa33 va3ae of pralpcrty In preparing the prior appropriately whichever a+jusCed containing the will assessable be determined &he &ken etlrre& fu33 cash va&uc base. is not recruired to an make nroperty. by comparing the current lien date full value of the appraisal unit 8s 8f the %&en da*e -to the f&3 cash v&tat base of the se-me unity -_e_ to the iridexed base year date. full Land and when measuring land value shall subsection im&ements declines constitute fixtures as improvements When the current of the same unit ---I__-constitute in value a separate and other constitute full value for the current an appraisal caused by disaster, For purposes unit. machinery a separate of property cash vet?ue bnse base year _I_-full value --5- and equipment appraisal is less indexed lien unit except in which case of this classified unit. than its 9~33. to the current -- 1 i I. ,I -. ’ .a. . 7/20/?9 L9+ lien date, the full ta%able v value shall value by a misfortune or calamity at its ment, lien of real shall former on the lien value year v&t~. damaged or destroyed is to be adjusted Code. date i 1: :( #I ,,I’\ ‘\ . ,.e-‘,’ .dj I,! as the current a new &se property the Revenue and Taxation the assessor it be enrolled and ska43 constitute (e) The taxable with c value , _; 1’ ‘; : f : 1 p, . *, ’ :’ - 5“ ’’ . i’ k.,i ;. ‘? If in accordance the property following plus 'the appropriate is restored, restoration inflation enroll adjust- unless: 1. The full date is less value of the restored property eetsh vahe than the f&3 base indexed year ful1. value in which case the lotm'value -as the new base year value, or 2. It is determined in which case the property's in Section that ncv? construction value 463. -6- shall as of the shall ' baS2 be enrolled has occurred be enrolled as provided [ $I [*.j Li i: t::i i’ 1 . -. , . .I, ‘* 7/20/79 Rule No. 462. I There shall (Cal. be a reappraisal the change in ownership establish lien of real of that a new base year full date following CHANGEIN OWNERSHIP. Adm. Code) property The reappraisal property. value as of the date of and will will be enrolled on the the change in ownership. is a in real property occurs when there --including the transfer of a present interest in the property, --the value of which is substantially right to beneficial use thereof, -_L_s -- A, "change in ownership" Fxcept as otherwise proof the fee interest. -II_section, "change in ownership" refers to all trans- Fqual -to -the value e-. vided fers in this Of of law, -_I_ addition ether property, whether voluntary, by grant, deviser inheritance, or deletion involuntary of an owner7 property change Pn the methed af haM&ng 0Y fhdkantcry trust transfer tit&c? 0~ by epcratien in this or -- a portion quiring This sions of the full thereof reappraisal includes defined of sale, sett&ement7 er deny whether by ve&tintary Ei other -- not involving from the term "transfer" meansa as used section, (a) A transfer 0 is excluded contract af 3:aw A change in the name of an owner of property change in ownership or by operation Code, units to land and/or improvements by any means is a change in ownership of the property transfers in Section fee title of units or thereof transferred. - portion in planned developments as 11003 and 3-1003.1 of the Business in cooperative -~ -;lr re- housing developments - --- and Profescontrolled - - = ~~._ . ’ q $ p; /I$ . y ;,jr: p :‘3 ; :y;; . - , L.., i.1; “* k& $f .’k !., 4 \F k iz i.. ’ *“:G 7/'20/73 6 by cooperative housing corporations 19265 of the Revenue and Taxation defined If in Section a &it or lot community within apartment center, mereial, or industrial in this defined the share unit park, land is purchased facilities in or lots The transfer shall fn the entire -Ch+ 43) ad 44r) k;ke &A P iin ~waerskip &aaeZss*eQ~ or lot common areas as transferred as an appurtenance interest a change of ownership 6katJge CORI- and of such be reappraised. of an undivided Wkih residential, changes ownership the unit reserved development, complex with or otherwise the common area corporatfon, planned or other subdivision only section, housing condominium, industrial . .J as Code. a cooperative project, in Section Code and condominiums 783 of the Civil shopping ,- or as defined bGU36hF in property prepc~ity 0s I dhddd Qa;Ly i&I the preparty does not constitut'e eneept CLSp~atrided dAt0S66k 0s pertba &n 666Uh6 &kGWi& if: (1) The transfer -is between or among co-owners and results min a change I-in the method of but - holding title -Pm does not result -in a change -to the prop rtional interests held by the co-owners -prior to the transfer, -- such as a partition --- of -- a tenancyin common, or l (2) The transfer mterest and'after of -- the joint creates or - transfers such creation or - transfer tenants. -8- any joint tenancy the transferor in- is one -m 8h b creates II 1 , .A ‘. : i., r: :: XI ‘,, 7/20/79 --(3) The transfer j>et\;cen spouses. , :. or - transfers .I : ‘: i ~ , . ‘i c I marriage a co-ort%r's agreement or decree or dissolution or legal that tably All / underline terminates or an interest briginally joint therein placed in property tenancy presumlkion March I, it or entityfies) It tenancy. shall tJlat each joint received is not applicaSle be rehut- tenant holding placed to joint an in This on termination. tenancies created after interest of less than five is of an undivided Transfers during any assessment year to a nerson(s), interest interests of the property that prior in the property the purpose of determining the accumulated to the present shall the percentage transferred represented total transfer be accumulated Vhen transferred. 5% or more, only by the accumulated that interests be reappraised. (b) A transfer (c) in joint the interest held an ownership shall and returns to the person(s) than a spouse, or entities portion a 1375. percent. other tenancy of equitable The creation, possessory interest title renet:al,sublease, is a change in ownership. or assignment in tax exempt real -- -9- property of a taxable for ;4 ,-* 2’. ‘n.. b( :. ., ,a* in com-- of a as of Narch 1, 1975, originally (6) The transfer for a joint presumed by the assessor interest : ‘s . :I 3 separation. (5) The transfer property ‘? .I %%@&%!s$' '> (4) The transfer terminates a joint tenancy or - tenancy _Ij mon but is to a spouse or former spouse in connection with settlement L . . 1 property :’ ’ any -term is ;. , ; .’ ,. *. .. a- change -in ownership except x.lhen tile interest, whether an - estate -is created -by a reservationin for years or an estate --mm for life, we --Ian the 1>roncrt\I to a tax exempt governmental ----XL--- instrument dceding entity. fe+ --(cl!> The creation, the riqbt to beneficial real property of -or termination of taxable or nontaxable use and possession and the transfer leased propcrtl 6~ assiqnnent suLleaseL constitutes of the lessor's interest a change in ownership in any of rearf property or not as follows: (1) The creation7 ifttespest aub~case or usaiqnment af a taxaHe passessery 8~ e6 a &ease itl rea& p193perksprSer a Germ 6~ the remaziader ef a term iR eneess & &4 pleaps is a ekalsqe in earnerskip &-the iaCeree* &=aR&e%=re& -of a leasehold interest in real nronerty for --A a term of 35 years or of a leasehold interest ------- more or the transfer -with a remaining term of a --mm of 35 years or -p-mmore or the termination leasehold interest which -had an original is a chanqe -in owenrship. -- term of 35 years or ---- more The calculation section shall of term of a lease for -- the -----include written renewal options. (2) The ereatian sublease OF &es3 in t!axab&e pFepe&y property renewal original or assignment purposes of -- this af u $tase far &:8-years of -- a leasehold interest -in taxable term of less than 35 years, including _---s with a remajning -options, is not a change in ownership7 term of the lease. Pm- -lO- reqardless--v of the . (3) The transfer eP the &ease remaining :z i yl i;:‘\ 1% ,. 1 i 1 ..!j /fi\ ,,:::j &{ -d 4 2, k;” 23 1ti2 ; 7/20/7Q &I of a lessor's real taxable including term, interest property renewal rcyard?ess subject options, of the term with --to a lease -- of --I__-less a than 35 years is a change in ownership. L fat Fhc trQm~fclT sahjeet of an3y to trhe extent skip u 3ease ef IZ 3caaarPs for 36 years af the cnt?irc &ea~eh&d $3 e ek!tnge of the rcversianary or property interest &es3 is ct ehmgc in stll3j~Ct anner- ine&%dSng the transherrcd7 af h &esaar~s interest te ene er mere Xeaacs Sn cxeegs & mere 3eases af &tB years te Che extent 5n the preperty 16 years in pYapcPty intercet;. fe+ 9'ke transfer &lip in prepcrty transferred7 fb+ !Fhc trmafcr to -+5 ilstePest to a &east kn cKee35 af &6 years in awncrsl~fp &ntcreat zp &csae, af the rcvera4enary strbjeet to the the &easchald The transfer Sn eHee354 af of the prapcrty 3BIYjCct to the $case-fs+ af 39 years Sn ewner- interest-b+ &easefs+ intcrcstfs+ skib+et 561 yeara end enLe er er &ees is a change end ta the extent ine&tidGng Sn pra~crty ipt the transfcrrcdp prepcrty or &Csss of lessor's interest -in taxable real - -a -property subject -to multiple leases, one me---or more of which is for a period and one -_I_------e---- of less than 35 years a- -ll- * $ * ;d 7/20/79 or more of which is for a period -of 35 years or --s---m is a chance of ownershin only -to the extent more, -of -- the subject property to a lease(s) -- of v-- less than 35 years. mter e Canab&c pa33c33ar~ e* 6e&en fd+ ef the term af passess&an Pke determination 23 ef interest she131 I33 *a e &case the pratrfstana 41 eadc7 this (e) Foreclosure. (1) Morigage a sufficfe.k or deed of trust foreclosed in ownership change (A) After the period (B) Upon redemption debtor's of redemption (2.) Deed of t rust reappraisal after (3) A, transfer action has passed and property or when title successor by judicial only: has not been redeemed, sale psraaant far vests in the original in interest. foreclosed by trustee's sale shall cause a the sale has taken place. by a trustor in lieu of a trustee's foreclosure a chanqe -in ownership. constitutes fc+ Tax deed end tan m&rev A ten e&e 4x3 the state w&U net eaufm reeppreiee%~ But e s&e eauae PeappraieaL sriyimkh by the &ate We reappmkiea& ewner redeeme Irem the state frem the state-12- eg tex-deeded w&M take pkae properky wketker w&U the eE a mw ewRoP pwrakases is . . . I ._ -A . @ 1; jj,J /q E&; { ::::,: s:: J$ ;.T;.ki ff , CL ., d. ‘-‘*! I:..I8’.’; 12jf.5 i sk ?/20,/'79 4s) rzatas Vb?O% fa3a%e;s A skaago in QmQrekip ere&ien e&p eat4 4he 4kww3fee 0g se& QT. Prrev0ealAe 4&e CPUS~ By &he Cme4es eenet&Bukee eS a peeeedenb tu4clre 4x9, a ~ev0eakS.e a ekangs ia ewne~skb+ A deee reek m3ekwT kewevePr apent Cke eaeeaC&en ia4erea4 it&era34 fre]~e~4y 7 Cke T%ve%a4&ea e& GPmB&ar&qr &~+%eesf: v&vea 4~~34~ change &a ewneml&p 06CUTE upou tzao wkiek enCibhca the ewnek a4 w&i4 was e p~~aees&en and en+y3rietttt 0g suck 4e 4ke EmediaCe sea& pPepPkyr (f) Transfers resulting from t.ZiX delinquency. Transfers & the sale to or deed to the state and redemption 2 the former assessee -w--wshall not However. fi -- be considered -as chanqes -in ownership. sale & the state whether -to the original owner or a new owner -- to -& 5 change -in ownership requirinq reappraisal as of the date of s-m -the sale, f#?+ cs> Trusts real property transfer --- creation to a trust -- g& --(19 The transfer termination. is a change in ownership -- of at ---- the time of unless: -_I_-- or the transferor's --(A) The transferor present beneficiary of I_- the trust, --(B) The trust -is revocable, (C) The transferor retains mffcial g interest(s) -13- or - 0~ the reversion created duration, spouse -is the and the bene--- does not exceed_ 12 years III- . 7/20/73 (D9 The exemption m--(E) afforded interspousal transfers applies. The transfer is from one trust to another mand meets v-m-the requirements of (A), -m (B9 8 (C9 z (D). (29 The termination of thereof constitutes -m -- a trust or portion & change & ownership unless: --(A) the ---mmtrust was for less than 12 years duration e on termination the property reverts to -m the trustor spouse or (B) the exemption or -e the trustor's Ilnterspousal transfers afforded applies. +g+ (h) Partnership. Real property a St&t+d . purchase or which is acquired, by aa partnership by the partnership is a change in owner- er g&n%& . or dherwise, ship of SG"? real the property name of 5 partnership The transfer constitutes ekig 0s tke pa&aerekip a pwnershin addition b unless : Ckere&9ral partnership propetty 02 entity p3?eperCy is ewned akwl any a&SC&en 0s a change Pn ewnes- eeneC&CuCae The purchase or transfer partnership(s), in a -- or deletion reference in real -- person Partnership rea4 pepet?Cyp interest(s) (i1 Corporations. stock(s) or any other to or in the or without interest es Ce53aPIeisin parCRership eP a perhnerV of -- an ownership e.q.& af 9 a change in ownership. by the Parkners ilehtien to -- a partner with partners# to'&thW the title of whether the name of the partnership one or more individual to the partnership. & regardless property, is he!.d in which is contributed of partners, is not a chancre & --- gropertv. (1) The purchase -m is not a change & -m- ownership or transfer & corps rate l e corporate property ' The stock ---is in a cooperative housing corporation, of the Revenue and -as defined -in Sectiori 1.7265 -Taxation Code, --and the transfer conveys -the exelusive right to occupancy g or a portion -- thereof, corporate property or - One corporation as the result of one or multiple --___I---transfers obtains control -of more ---than 50% of the voting stock, exclusive-- of any shares owned by directors, -of another corporation. of between op amonq affiliated -- real property reorgaincluding those made to achieve a corporate -_I (2) Transfers corporations, nization & merqer or - consolidation shall not_ be -- a change of owner- ' ship if: The votin.2 (A) -- stock of -I the corporation makinq the transfer and the voting stock af tfie transferee corporation are each --owned 100% by a corporation related by voting stock ownership (B) to a common parent; -- The common parent voting stock 02 chains corporation of -- at least of - related ed 1\ I owns directly one corporation corporations. Simple r- and example 100% -vv of the in the chain -m- ‘, *. .a” ..,‘f & 1 :q .‘Ji $aa .:I. v; !;4 :, I?‘;i ..a; . : 5: 1 y1 :;> .i$ .J--‘1 i-f, i: h‘a 7,'20/79 A transfe-r' other three a transfer wholly of real property corporations e.g., owned by A and B to B which is . owned by A and P would not be a change in ownership because and the fact z transfer P owns 100% of A. 02 stock or membership certifi- in a- housing cooperative is not a change in ownership pros-e -?5 the cooperative was financed under one mortqage, was in-- sured under Section a [ 1 by C which is wholly (3) The purchase mvided ‘; \ by P, A, B, or C to any of the would not be a change in ownership, of those relationships cates ;qt 202, 213, 221(d) (31, 221 (d)(4), or --s 236 of the National tiousing Act, as amended, or - was financed & a, direct loan from tie California and the Regulatory Uousing Finance Agency _L---a and Occupancy Asreements were approved by the respective insuring. or lendinq (j, agency. Interspousal of Sections shall 460 throuqh not include limited transfers. 3 471 of this --II_-interspousal code, a change & transfer, includinq, provision ownership but II-- not to: J3.J Transfers to 5 trustee for the beneficial use_ of 5 spouse, -spouse of 5 deceased transferor, 0~ by 5 or -- the surviving trustee -- of -such a trust-to -(2) anv other t?otwithstanding Transfers which take --- effect the spouse of s- the trustor, upon the death (3) Transf ers tc, a, spouse br former -16- youse of -- a spousd; in connection with . r-i .3 L.: 6, @ c. IL+* Z’. .I ‘:. .’ ‘i# t -i ‘f 7/20/79 , s property settlement of a marriage -- agreement -or legal or - decree separation, spouses, solely transfer, The following do not constitute transfers of - dissolution -or or - termination, interest. af any co-owner's The creation, /&.,: ;:‘;j p :;’ ;-$[ --y.;\ !, . ;;a.:‘;;#j bI between a change of ownership: (1) The transfer inters?aasaS manftp f3+ inva&ntary Any t ransfer At1y trmlt:fc?r the right rjaint to an existing of or trust of assessee a trustee instrument. whether tenants or by apcratian title or reconveyance among or u cam- kitcrest-; caused by the substitution between of perfecting (4) tenancy er trerminate to the terms of a security v&untaryp 359 (3) to create or joint (2) Any transfer -44+ My transfer w transfer praperty pursuant title. of bare legal iaw~ for the purpose to the property. ronultlk~q III of a security to immediate use, tlte vrcatlrm, ~i3fJiqnnsmt, interest not coupled occupancy, possession with or profits. $3+ Any transfer tith wh5eh ene?usiva property of steek vested wilth &ege? net convey ta the transferee-b+ doa2 r$gkt of et earparatian to aeetq5anegr and or portion thereof? -17- passessian the of the rca& I -.. p 1 k 3 t 11 j;;-.;:g :q I *.*/ L3; ::, 1.;*I $.$ ::::; 8.i $/ 1, . ,.4: c4:, a.:.j $j*2& E; x-i- &fg 7/20/79 (5) 6,; FB $2 pj O. , IF, i d -to spouse or transferor, I_----both of them an When such reserved estate for years or --- an estate for life. estates both terminate and if the provisions of -- this --Any transfer section relating not provide whose terms reserve be -an instrument the transferor's to trusts otherwise, and interspousal transfers a change_ & ownership shall do -be deemed I_to have occurred. (6) AnAnpurchase, redemption 02 other transfer of -- the shares or of a group trust, pooled fund, - units of participation investment fund cornmo:~ trust fund, or - other collective es*.ilished by a financial institution. (7) A"$n contribution of real property to an employee benefit --plan or vesting, transfer, distribution 2,~ -- the creation, termination of a participant's or interest - beneficiary's -in -_I_-such a plan. 1meaning ascribed Security -fi+ 11, Date to them & -Act of 1974. -- as the following dates =fh+ G&es7 have the -Retirement Income . For purposes of the date of change in ownership shall F&-date an escrem contra& shall the =loyee of change in ownership. reaL2property in The terms used herein of reappraising of real property, be used: all instr~eti~ens part&c+ or the &ate the of sa?e have been -18- met? c~sentia& have been melt e&emcnCs-af a . p j,Q I i j$ !:,;; .j &.,”p.!A.$ 7/20/?9 . 3n the went tained7 the (1) dates cannot be aseer- change 519 ennarship sha&& be the date af the deed ew sPmi~:ar the of either tran5fcp Sales. (a) B :, :‘, , : ::I . p$ faregeing that seeardatian ) .;-*.I 3 /;:;.j ‘;I\::r ,‘! ;k & daetlment leget& er cqt&tuHe Where the transfer k : i: ) j,p 2 !$ -6 li- 3 af evMencing tit&c7 is evidenced b2 recordAtion the date of recordation --to be the date of ownernresumed ----- of -N-wa deed or other shall be rebuttahlv document, ship change. This presumption 2 different e by evidence of -- a contract of e--p sale have been met. Where the transfer -is accomplished document, the transferee the date --- -to possession presumed (2) Leases. (3) Inherit and/or beneficial by an_ unrecorded obtained use shall to be the date of ownership -em-- presumption ferent proving date to be the date all parties' in-----m have elements -- the essential --I_ met in escrow or structions (hl may I_be rebutted may be rebutted the right mbe rebuttably This change. bl evidence proving a-- dif- date. The date ante the (by will lessee has the right or intestate to possession. succession). The date of death of the decedent. +4+ *nter vitras cneeattil trusts7 or revoked !P~C date the trttst by the trtlster-; -19- Pnstrment &s T/20/79 (4) Trusts. The date ---- (A) Revocable. '(B) Irrevocable. NOTE: Refer to the The -mm- date subsection (g) -2o- trust becomes irrevocable, the trust instrument for trust transfer & executed. exemptions. 7/20/7? a NEWLYCONSTRUCTED PROPERTY Rule No. 463. -Ze+ --(a) When real after the 1975 lien full or a portion thereof, -date, the assessor shall value of such "newly constructed This will date of completion. value All underline ? for only constructed, taxable adding that portion whether taxable full it the full property" establish of the property property a-ue of property shall reduced be determined to account is only constructed" (1) Any physical All /' underline fixtures, that value or - "new construction" such as adding building land fill, retaining or swimming pool or changing so as to add to its -to incorporate -an additional in this section. -is defined -- -21- The value at&r increases including far than walls, curbs, a new an existing square footage fixture, the means and or sewers to land or constructing improvement by resulting to land or improvements, the purpose of sandseapfngl gutters a addition for construction. from the new construction and does not include ----not associated with the new construction. -- +a+ (b) "Newly i includes: The to the taxable removed during value of ne:q construction which is newly or alteration. --alue of new construction property as of the a new base year full is an addition value on the total value of pieexisting a -is newly constructed ascertain the property, as --- that or term . 7/20/79 :,*; t’f 1 r 1 ?‘r ; 13 p/qj f;, b;;‘..5! I k&Y & /q$ F-;: - . ;;; P: i.. 3 $j$ :< -: $ ,$ !,;; . (z I Any substantial constitutes results Ehysical alteration in a change in the way the property construction Site -: g ii; {;I Lb h :, : ct of I- land which of the land or a major rehabilitation Examples of alterations t-. ‘~:&2 is used. to land to be considered new are: development establishing Altering of rural land for a residential subdivision. dry grazing rolling, the purpose of land to level irrigated crop land. Preparing a a vacant In any instance All underline pre-existing inflation shall use as a parking shall reappraisal,only the value of the be added to the base year value land. Increases or a zoning in land value change rather not be enrolled, for 1975 = $10,000 2. Land value 1978 = 20,000 3. Value of alteration 1978 = 5,000 Value of structure added 1978 = 75,000 = 90,000 value --22- of the caused by than new construction example: Land value 1979 roll (1+3+4) facility. is substantial 1. 4. L for in which an alteration enough to reauire alteration lot (must be adjusted to reflect appropriate indexing) . m, I I i I Alterations to land which do a major re-- not constitute -_I_ or which do not result in a change in the habilitation way the property (3) Any physical verts alteration thereof not result of-any the improvement substantial ture is used shall improvement which con- or any portion equivalent thereof of a new structure that had been altered, office building makes it usable e.g. to make it of the struc- physical alterations suitable for use as an or alterations to a warehouse that as a retail store or a restaurant. Only the value of the alteration the appropriately existing to the or portion or changes the use of the portion to an old structure 9 1Al / under-line 7 in reappraisal. indexed shall be added to base year value of the pre- structure. I (4) Excluded 1 from alterations is construction strutted" for qualify annual preparation interior coverings or exterior painting, equivalent and repair, e.g., land or replacement of roof of aluminum siding ments or the replacement to improve- of worn machine parts. rehabilitation, of any fixture performed of agricultural or the addition (5) zany physical as "newly con- or reconstruction the purpose of normal maintenance routine I ! I i j that renovation which converts of a new fixture it or modernization to the substantial or any substitution of a new fixture. Substantial equivalency comparing the productive 7/20/79 shall be ascertained capacity, -23- normally by expressed m m ‘jq >..“: i,.:t\;;; jJ \,;:y!;j f:‘,\ q+,-?, F.‘\ t:. ! ;_.1:.*‘I:’ .:F 7/20/79 -in units to its fl~j per hour, original (c) For purposes an improvement of -- the rehabilitated productive of this fixture capacity. section, "fixture" is defined whose use or purpose directly or augments the process or function applies of a trade, as to industry, or profession. (d) Mew construction appraised at its time the entire portion shall use. portion of this of property or portion whether is available governmental such inspection, all I full value. the date of completion for be given to the date of the final propriate official, thereof the real property or a use, consideration shall inspection or, obligations, the date of the completion -24- by the ap- in the absence of fulfilled or in the case of fixtures, of - testing equipment. is is available the date the prime contractor of his contract at which which is newly con- at its section, In determining be on such date and each lien be reappraised thereof date shall the date of completion, the date the property for on the lien value until > (e) For purposes I full date thereafter structed rll InderLine in progress -of machinery and m PI’. fy pz3 ll!y%-I /fT;j g3 p c! 1‘‘..( 1. f:I 1. ..::; ! .‘;: ,_ , ‘8 $.! ’ i;? ,i..: . :I.;’ -:I‘*I , ‘:8 I!: ; I. &- ,li ia: , c ,: + 7-20-79 e does not include real property -e . the full is reconstructed after a disaster where is substanof such real property, as reconstructedf to its full value prior to the disaster. equivalent --(f) Newly constructed I which value tially If on the lien Enroll 1. All value date equivalent, following the restored Enroll property the current the current the assessor restoration: at its plus or minus the appropriate 2. if are not substantially the values sjlall property taxable former inflation adjustment, market value of the restored market value is less than the value or property found in Item 1 above, or 3. Enroll the ValUe found in Item 1 above plus value of any newly constructed that 463 new construction faj fbj. has occurred if as it is pyev&dedfn determined Beetien . For purposes restored. property the market of this subsection reconstructed er and w-y. use and quality to that only, or repaired . which existed -25- newly constructed property in a timely manner follow . . egjaivalat 3n n prior to the disaster, .I 7/20/79 as a re-em or - restoration --(g) For property under reconstruction I suit of disaster which changes ownership prior completion of reconstruction of the land and existing All underline I or restoration, improvements shall as of the date of the change in ownership of any reconstruction ing the transfer completion following shall be determined in accordance new construction equivalent" or restoration test with but without normally applicable a, disaster. -26 the value be determined but the value \!hich occurs follow- as of the date of the provisions regard to the applicable to to the "substantially -to property reconstructed T/20/79 . Rule Ho. 464, Xlll as Homeowners’ repeal 110.6, any The 1978. Revenue property tax property to a specific tax ond Towotion exemptions rate granted shall apply Exomples property. Code. or authorized to the by the Constitution current taxable of the application Veterans’ exemption. sum of 25 no provision for to the reconsidering current taxable percent of the of and Toxation property tax of the exemption of property taxable taxabtt value in Revenue the veterans’ the granting value lets \ any exemptions are , of the current full cash value as defined assets will determine the limiiation for applies value The value of partial tax rote opplics to the current Th e property exemption less the value of the extmption. exemption. for the homeowners’ contains (c) EXEMl’TlOHS. fallows: percent taxable rate 1, applicable qualifying (b) not July exemptions Code) 110, 110.1,110.5, A does on or before (0) Adm. Sections Refarsnce: Article (Cot. quolifying the taxable of property assets and 100 Code Section 110 for nonexemption. Article XIII A prior for value to 1978. veteronr’ The property exemption tax less the of the exemption. Disabled qualifying veterans’ for History: exemption. the disabled The veterans’ Adopted luns 29, 1978. sffsct,vs property property tax tax rate applies exemptron to current less the value taxoble value of property of the exemption, July 3, 1978. Rule No. 465. (Cal. Mm. Code) NC'NPROFITGOLF COURSES. When appraising real property course in Article purposes XXII of ef the date qaa&:i+icd nn2er of Section 10 value of shall of such attrihutahle ba3e year7 regf3rd3ess tke eengkftutian p~cmi3kms~ 2 of Article of -to any of - Section --- the provisions A Constitution or leqis-- its implcmentinq -I_-of the California without XIII auefi property golf the value the full f33 of the appropriate nonprofit the assessor ascertain of such use, plus rights-7 for the provisions Constitution, date and tkreaftcr on the basis to any mineral wit11 California the for the 1973 lien -v__I-----property accordance used exclusively regard lation. ‘:;> -27- r. . 1 i I 1.:: f. .I I’, ,;*t L’. _.. : f:Q *: ,. .I .) *1 ‘.J ~ :>.‘.I .: : -.; i .I “‘< : : ;y ;c’q FF pi-:; is:! ,. .-v. f*.‘.“4 f :I : .‘I:; ;:. $ ;;$y: i/j ,; I i. .4 . (Cal. Adm. Code) VALUATION AND ENROLLMENTOF TREES AND VINES Rczle No. 466. The &se yea5z vahe geremia&e ~34 4rt3;i* alnd a& CEeee7 arhea wkert p&a19*ed k:R ereka3xl7 or not enforceably restricted gmve7 shall hskef37 8~ vheyard 01 ebker Ee~m nkeCker be the most recent the of following: value as of the 1975 lien (b) The full value as of the date of planting, (c) The full value as of the date of a change in ormership. The full value 3 +i+i of trees All I fruit orchard -=A1 underline for valued regard to the provisions enrolled is of XIII, Section tuttis t?w the c?cemptSan-; \ and thereafter as follows: restricted to the provisions of section of section 2 of Article and vines shall be an- 470 herein XIII without A of the ' at their increases z exempt trees in land enforceably pursuant (b) Those planted percent exempted by Article previously the 1979 date nually Constitution. 0 to tax, (a) Those planted annual or &a%% net be enr&&d the cxpirathn subject be valued P date. and nut trees and vines when planted respectively in -m form shall -be exempt -as provided -by law. -or vineyard Upon becoming shall and vines the Stake Canatitatian of 3icn date f&?awing 0 . (a) The full e in land not enforceably base year value appropriately in the consumer price their full value for --- less. -28- index the current restricted shall adjusted be to rofkct not to exceed two lien . . : I I .. t date, whichever . .. ‘“. . y\ ’ ; ( 1 I : ..a: ; . .., ) .i ./ I’ ;‘! -;.:! * I . . : : -:$ 1. :: ? ?,:y ’ .C., a.> t. ! i p . . ! > yg 1. 5-i 1 , ‘,.-? b-4 ,I‘,!\.-3 -. 1 wi .$i $ I-.‘ ‘i , 3 $; P Ibe: .yt II‘:,;!&.$J (1 I I .- L 7-20-79 . (1) The base year for trees & vines planted --in land not -enforceablx restricted shall -m be the year they became subject 911 underline to taxation unless year was prior to 1975 in which case the base year is 1975. (c) Perennials, commercial valued other production annually than trees on enforceably as provided on land not enforceably in section restricted, the same base year as --- the land unless m-- 0 that and vines, planted restricted land shall 470. they shall planted If for their be they are planted be after valued lien --- and have date 1975 in which case the year af psenting she3i be their arigine3 best -year7 -_L__ their value -as of mvthe date of planting shall be their original --F base year value. -- -29- 1 l 1; 7-20-73 Rule 467. (Cal. Adm. Code) . , ; 6 81 pj: ;; 21 of this as of that date. to March i, code and created shall prior interests be appraised shall renewed, as defined to March 1, 1975, newly created at their extended, 'for a Germ 4~ excess eF Cen years -at their full value full subsequent value to occupancy as of erected for by the possessory the purpose interest of the date of the completion of construction a period shall for be appraised the current for any reason full appropriatelv & being prepared value extension, the right of exercising in land covers that adjusted lower ~hcA3 rcficck be valued as are in the course Section interest than its date, 463. 4ec&incs changes fa%% cash V&h5 ~knt dce%inc ease year to the lien -m----v- datd value he enrolled. shall --- rights more than one lien with is less shall the When improvements interests of any possessory assessment: that that in accordance to a value base the current value be appraised obtains of construction. of the possessory If a held owned by the holder they or assigned any term shall or assignee I or use of the property. New improvements granted subleased as of the date of -- the renewal, --- Or as of the date the sub-lessee e- ;.j ascertain . interests ::; *. 1 1 the date of creation. Iqossessory ,, :; TAXABLE POSSESSORYINTERESTS. Possessory 1975, i - : , . $1 : _‘Li fs ,*! , For the assessor ------ the 1979 lien date and thereafter the faK%. value of al.1 taxable possessory interests in Section ‘,:I’;’ for which the roll AS adopted September 26, 1978 7-20-79 Rule No. 469. (Cal. Adm, Coda) MINES AND QUARRIES. . Raforence: Sabions 110, 110.1, 110.5, 110.6, Revenue ond Toxotion Code. Organic and inorganic minerals and rocks are notoral substances of the earth, and ore classified OS land. The volume of minerals or rocks of acceptable quality that may be removed from the land The creation of under existing economic and operating conditions are classified as reserves. reserves by exploration or by development constitutes an addition to real property and the production of the minerals or rocks from a reserve constitutes a removal of real property. (a) The reserves. data that (b) The Hirtory: full value of a mine or quorty is its base yeor full value adjusted for the depletion of The value of the depleted reserves shall be determined annually employing the economic applied to the establishment of the-reserves in thi? base year. base year of new reserves shall be the year Adopted Juoa 29, 1978, effective July 3, 1976. Amen&d September 26, 1978, offoctivs October 2. 1978. -31- in which either development or mining occurs. 3-20-79 (Cal. Rule No. 470. A&n. Code) @p~~-&e& PROPERTY. Reference: All Sections 110, 110.1, lands open-space Revenue and ing methods: Taxotion (a) Code change -in (c) If o change year improvements to the and value a land When an of full cash When yeor meaning restricted value prior ta the 1975 lien is the 1975 restricted has is entered occurred, the Code. the value in ownership has be the ownership, restricted date of Sections 421 determined with and by one no subsequent 422 of the change of the .^ - follow- in owner- value. subsequent to the 1975 lien dote and no full value is the value OS if restricted into bose shall and using occurred yeor of leveling, to the redetermined the be modified la;.d the subsequent restricted.volue regordless values as wells improvements effective annually will capitalization as by be valued rate dote the 1975 lien the date of the enforceable inflation in Section the of the mte. by copitolizing prescribed date, of yeot base most recent restriction. Subsequent land the income attributoble 423 (b) of the Revenue Code. open-space the contract Government value on open-spocc of the Revenue cash value modified shall be the base is Code, OS modified 426 History: I’ within o bose restriction shall in such Taxation 51285 full in ownership change base year and Toxot;on 1975. full All have restricted the bose Revenua restricted shall If an enforceable (b) 110.6, “enforceably If enforceobly ship, 110.5; Taxation annually year full annually contract and concelled, the by the is not to of the the provisions Iond of Sections be fhe shall inflation through base year rote. The rote. modified 51280 opproikiate it shall be phased out under the full cash value of the land” shall renewed “the value value inflation Code; by the restricted pursuant cash annually value of the by the land inflation provisions of Section be the base yeor full by capitolirotion of income rote. Adopted June 29, 1978, effective July 3, 1978. Amended September 26, 1978, effective October 2, 1978. Commencing with cnforceahly ---II_ the 1979 lien date, L&L property restricted pursuant to Section -8 of Article XIII of the California --shall be valued for property tax purposes pursuant I Constitution to Article 1.5, and Article Open Space Land (commencing with 1.9, Historical Property Section (commencing with 421) Section 439) ill of Chapter 3 of Part 2 of the Revenue and Taxation Code. rider--, 1 i When enforceable restrictions are cancelled or terminated by nonrenewal I as provided by the Government Code Code, m-the full cash value referred modified annually by the inflation_ -33- or -to therein rate. ~~~ the Revenue and Taxation shall be the value ---- as . i . . I... a! * .I! r;jm ..) ::: y.-.*/ 1 fat p= ,.‘J ‘:, \ 1.::’ ‘; f::;‘: a ‘1 &.!;;JI.:>i.2;G :’;.:i y; % 7-20-79 , Rule a (Cal. No. 471. Consistent Article with XIII Adm. Code) TIXERLAND. the intent of the California interpretation thereof, Constitution pursuant Code shall and thereafter from the 3933 statt&ory site class by the inf*atian be ascertained value rate. schedule phrase 1a trike.lt ascertained value 0~ ettkem&3e is defined after timberland to be adopted site class 51110 or 51113 of for the 1979 lien mm-most recent date board-adopted and sh&% be madified nnnanWy base year value board-adopted timberland schedule te es Ckah shall timberland be site January which changes ownership be ascertained value *keree+ ii3 ew3er;akip~ by the Board on or before for shall a %kaage 462, its in Section March 1, 1980, land which has . ..-.-- - - wide3fyees Base year values 1980. for BPmker&a3d 7 9P a perb&en from the most recent schedule of -. _____.. -. - BST 0~ 9-r a&e35 Mereh &T 29797 purekaaed~ 3(j) and the legislative to Sections the Government timberland of Section the base year value been zoned as timberland ..--- - of the provisions class 1, on or from the board-adopted in effect as of the date of change in ownership. Values the determined lien date next as provided succeeding in this section shall be enrolled the date when the timberland, on or a changed ownership. Each year following enactment thereof, I portion eG a new base year va&ue that ve%ue &a&& be madi;iicd by the annt& it3&aBPfm pa&e+ -33-