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‘ x s z.. I .J * , l STATE OF CALIFORNIA ATE BOARD 0 N STREET, SACRAMENTO, (P.O. BOX 1799, SACRAMENTO, (916) GEORGE R. REILLY First District, San Francisco OF EQUALIZATION CALIFORNIA CALIFORNIA ERNEST J. DRONENBLJRG. JR Second District, San Diego 95808) 445-6479 WILLIAM M. EENNElT Third District, San Rafael RICHARD NEVINS Fourth District, Pasadena KENNETH CORY C~nfrolfer, Sacramento DOUGLAS D. BELL Executive Secrefary No. October 18, 1979 TO COUNTY ASSESSORS, COUNTY COUNSELS, COUNTY ASSESSMENT APPEALS BOARDS, AND OTHER INTERESTED PARTIES: PROPERTY TAX RULES 460, 466. 461, 467, 462, 470, 463, 465, and 471 On October 12, 1979, a notice of public hearing on the The hearing will be above captioned rules was mailed. on November 13, 1979 at 2:30 p.m. at 1020 N Street, Room 102, Sacramento, California 95814. Attached is a copy of the rules, including proposed amendments noted in strike-out and underscored format. Sincerely, / Janice Masterton Calendar Clerk JM:ms Attachment 79/181 . i I I) Rule No. (a) Sections (Cal. 400. provide for 1 and 2.of establishing real property is tfien to A of the Constitution taxable taxes and a procedure value of locally to a base year by reference annually two percent XIII on property the currenk modified exceed Article a limitation for GENERAL APPLICATION. Adm. Code} to reflect full assessed cash value the inflation rate which not per year. (b) The foil owing definitions _ .te.rms in the rules pcrtiining govern the construction to Sections of the 1 and 2 of Article XXX1 A. (1) . the original real ne:dy constructed, erty', used and Me full serves any assessment thereof, value year is purchased, shall for .ZS in is become the base such real prop- thereof, /FULL CASH VALWE. The full cash value easfi vskc~e" as dei&ned 'Paxatien 1975-76 year or changes ownership in determining (Al ah3f or a portion property, or a portion (2) Thrrcaftel:, base year. which year The assessment BASE: YEAR. fZ0de-i of real in Se&&en property means *ha 338 05 the ReVet-itit? 63 ef: 1 10/12/79 The &&ea.dat+ 1. 23975~76, B-F "full cash value" --the Revenue and Taxation properties with -- shall the 1975 lien be enrolled when such real newly date, constructed, (3) the If real cash value of next succeeding the date thereof, base year property reappraise priate full notwithstanding @ determined (3 1 standard other than full Restricted cash value Full base year value appro- shall for may of Section 1980. authorized the assessor Such reappraisals to Su3~ I, full is ptiretia~k Cede to its cash value 1975-76 FULL VALUE. cash value full Code but RESTRICTED VALUE. or by sta&te * (4) the prior then the provisions Revenue and Taxation tion to its base yeax 35m da9,e. time, is purchased, has not been appraised cash value, such property which ownership. +S 6eeCim3 465~5 eh *ig,e R?-ve~e attd FaxetPea priate in Section --- full or porti.on or changes -as defined Code as of the date such real. ---constructed, or chanqes owner- on the li21-1 date property, or cash value" 110 of the Revenue- -and Taxation --property is purchased, is newly after 110.1 -* of 1975 for Code, A_ as of __I--- date -- -the lien The "full yeas Base in Section I_- -as defined a X975-76 base year, 2. ship &, &9?Ei7 fiev Gie the appro- be made at any 405.6 of the' values must means a value prescribed by the Constitu- by the Constitution. value or the restricted 2 (appraised value) . means either value. 10/12/79 (5) For each lien -INFLATION RATE. date in which full value the base year of real percentage property change full shall in cost Revenue and Taxation value not the taxable (6) full reflect value law -I_or the full in excess lien Taxable value for any given value -----. .._ -for to reflect as defined of the preceding adjusted value lien same -lien -the -_I_ the lien is determincd,.the the in Section Code; provided an increase TAXABLE VALUE. after be modified of living, 2212 of the shall value date that such of 2 percent Of date. rr.eans the base year date as required 2ate, m--4 whichever by . is less. --f?+ t.ke base F?333; BA6;WVASE fjA6ET year Chc 9Perz date va3tte e" fsx? which see& pq3e5rky t- tions calculated prescribed Constitution. aFpsp&eteSy the St033 is beinfr -ct3+ (7) PROPERTYTAX RATE. rate Fs33 eaek va$ae S3aBe meai?s in accordance by Section prcpttred-; The property with irndcxed tax rate the ad valorcm 1 of Article XIII tax is the limita- A of the . 10/12/79 3 4x3 I Rule Ho. 451, (a) Section for of or profit shall (Section a prendre a consideration. purchased, ownership occurs A Purchase is to the use, occupancy, posses- pmperty, or portion thereof, real of if in base year. or right Constitution be reappraised 463) or a change the original title i)RC%%RTY VALUE CHANGES. A of the California XIII property 462) after any transfer sion real constructed (Section A&m. C&de) ,"&.I, 2 of Article that prov2des newly (Cal. I Other-than-a-transfer-&e!tuded-&-the- deffnftfen-ef-change-ef-ewners~~~-~r-spee~f~ea~~~-e~=~aded tkere~rem-~~-Seet4en-~~~~-&ii4 ReRtaxaB3:e Ike-ereatien-e+-a-predate-interest ew;-b,ed p ~leperty ptG33lei3y B&=&e-k +t3 kf!tX -Wt&ZU 6eE&3R eY*y and p&dieSy $3 05 &Y-tie& enned p~ap- +issz 'Ed +Zke eensti4utlen~ wh4eke5nstlk&es fl p3gs~f!i!39&r-y <eyes* as *.hc -d--b in Seed-,&srp te%RIis de=--d 2-3-fb%of th"s codei is regarded ZIS E-Xp~~rckr*_se ~egard?ezs a-i Pntcrest r,Lf the per&d shaft3 be cpprz%scd stld! sf the 5nterest-z as its fo33, vaftne ifIs of "ihe for in this to valuation in da*e of srea6Zeg.-p (b) Unless erty which otherwise was not provided subject chapter, real any Prior ProP- base Yeari s~ek-as-Rew~y-disee~e~e~-e~-a~~~t~e~a~-~~e~e~-e~~-a~d-ga3 Pe6ervesi shall be appraised at full value have been assessed and be added to the roll l lien date immediately (c) The prior portion thereof, following year factored physically for each year it being prepared should for the discovery. base year value of real removed from the site 4 property, shall be 10/12/79 or a * 1 1. deducted 0 from the property's value , provided than zero. reflect that The net value shall value adjusted prepare shall be reflected never exceed followins valued nursuant such rolls praisal is lcss'thc -- of -- all date its value of lien current date. full Land and irhen measuring value that full f&3 base. taxable Increases lien -- date value shall Proljerty indexed. 3 mi sfortune or - calamity arrd not -- subsection. this vt?&kie re-is -to be --.. $ required--I__- to make an annual preparing reap- 9ropertv. the appraisal. of -------the same unit -. . improvements declines date -- base oS rreperty by comparing unit in constitute value for the current as 05 the &!&en da*e to the Q&3 cask ~a3tenc ba~c of the ~&YE r\nitr base year the base -.- the Drevious be detcmined will the containing value since _( is not -v to determine 5a33. eusis va3uc & to and then thereafter appropriately subsection assessable full adjusted the then etlrrent except roll value assessor roll eatming damage caused in value years or -- the cash value base sear the Declines than on --A^the to not be less of the two values. 5~33 ea+ Gaeters in full I_-- and decreases stored and tax an assessment to be &as value be the lesser indexed i=e re53cet shall be appropriately date full 1979-80 B e3! prepertqr lien -- year k:hichever value, lien value which shall assessor year shall value base year change in the cost of living compared to the current (d) nor the tax ’ year factored such net tax&Se the percentage taxable ,.a prior to the indexed -L the current lien an appraisal caused by disaster, unit except in which l-o/12/79 case land constitute shall subsection aS and other fixtures imprcnenents full date, etnd &et43 (d taxable value by a misfortune it ment, lien esn23rh,*tuke real of or calzmfty at Fts forRer unless value The full date is less value as the new base in Section than its f'ttU damaged or destroyed is to be adjusted Code. lien If date va-lrtle. in accordance the property following plus -the appropriate is restored, restoration inflation enrolIadjust- : 1. in which OA the -shall assessor 2. is less a new btztse yeftr property the Revenue and ~axatiox Year full, I__- unit, appraisal t.0 value the classified and equipment of property value taxable with machrnery of this bn~e I_base year full value indexed -- the current . _I_-the full value shall be onrolled as the current eaah value The For purposes unit. a sepc?rAte constitute m-En the current lien -- a separate value than of the restored the fu33 in which year is detemiged It case property's the as of cask v&:tre base indexed case the lowr valuec property value shall base be enrolled or that net' construction value 463. shall has occurred be enroll4 as . 6 - the 10/12/79 provided . 1 . . .‘ No, Rule 452. T'h-xe shalb (Cal, Adm, Code) 2x2 a reappraisal the chang.2 in o-mership a new base year lien following date A "change CHANGE IN OWNERSHIP. of real of that establish the ’ full property. value chx!ge in as of property the date The reappraisal of will. and ici.11 be enrolled an the ownerF%fp+ occurs *--..--when there is a transfer I-- or' a present interest the pxperty, including the -in -right to beneficial of is substantially I___- use thereof, -the valce -II -. which c provided equal -t3 -the value of Pxcept as >therwisz --- the fee interest. in this fers in ownershiDSL----L-in real section, "chancre of property, elf -- law, by grnnt# addition procert~ in ownershi3" whether volunta~ devise, inheritance, or deletion regers te includes involuntary trtlst of a: oprmp,sr~pYepc?ty all 02 b trans- operation contract of sale, 5e~t3cmenC~ %P t%ny sChelpchangesn khr ncth8d 89 h%w&lr.fi h,&t&eywke:CkcPr by vsh%lCary 6P +dW+&an&aFy A change change in this ownership in This defined a sions ~~e?~!?~8~ &a?.? OK ti 83 is excluded from the nut term Other involving "transfer" means. a as used section, 5 portion piwing 8~ by in the nama of an owner of property (a) A transfer z $ran3+e~ of the full thereof reappraisal includes Code, units to land by any means is a change . of the property or - portion transfers in Section fee title of units in planned 11003 and 11003.1 in cooperative and/or improvements in ownership thereof housing transferred, developments of the Business developments re- as and Profescontrolled 7 10/12/79 by cooperative housing corporations as defined 17265 of the Revenue and Taxation defined in Section ownership ship interest unit, wherein or portion A change in ownership Housing Act, cooperative the regulatory is to the housing ing for purchase cooperative was financed by a direct and provided cooperative loan that were approved by the that the transfer or to a person or family by reason of limited from the housing was 514, 515, or 516 of and provided cooperative which was 202 of the Housing Act of and occupancy agreements or insurer, of.stock or 236 of the National Housing Finance Agency, lender of a specific such mortgage was insured to Section cooperative from the California owner- the project. as amended, or such housing 1959, or the housing transfer in a transfer 221(d)(4), the Housing Act of 1949 or Section governmental of an individual in a housing pursuant as community does not occur upon the transfer 213, 221(d)(3), or assisted or other within under one mortgage provided under Section financed results thereof or membership certificates financed Code a transfer in the project apartment Code and condominiums 783 of the Civil projects in Section income. qualify- Any subsequent to a person or family not monthly carrying charges of the income level or interest reduction of such person or family assistance shall by reason constitute a change of ownership. xi7 a unit or lot with&? coip4aausity apartment shopping center, a CQO~~K&~I.W housing protest, industrial ccK?dominiQ.& park, 8 or other carprationt planned develapmnL residential, 10/12/79 oom- or me.rcial, oz industrial faci‘si%ies d32fzm2.d the in is this lA=nia: Qr lots shall constitute iaterest of an undivided rest&&s with changes ow?lesahig 0% lot coi?Yxm i3PChs3 as transferred am3 as an appurtenance interest of ownership ia fk+ 9~ pert&m area reserved cmplex of SLiCh be reappraised. a change as pmvided oth,erwise c?nEy +3.-c? rsnit section, The transfer f3f &rt tie and 44) w&&e in property en&Fe does not prepe%ky kke %raFisfer $13 a ekamye %R etmerskip *tkeffee8 *rans~erfed7 e&y & exeegk a div&eSed &a *ke preperky if: and results -is between or amonp co-owners in the method of but does not result -a-- holding title I_- --(I) The transfer in a change -in a change,determined -interests held a partition by a value -- b2 the co-owners -of -a tenancy terkst and after of e- the joint --(3) interest to the -- the proportional transfer, such as -- -in common, -or such creation or transfer any joint the tenancy transferor in- is one -- tenants. The transfer creates or - transfers d co-owner's spouses. The ---- transfer common oracommunity terminates aJoint tenancy tenancy _.. A--_.-__ __-__-..- ___-__ -____ __._._. property spcm-se in connection or decree prior or transfers between (4) comparisor+to -- creates (2) The transfer _I- former or purchased in the ConTo share lb) . r 1. ' .< suk?dfvfs9sn land of dissolution interest but is in to a spouses-or with a property agreement -.--------I-- I-_ _-. settlement ._ ._.^-___________ _ of a marriage 9 or legal separation. -_ ._ -- lo/w79 . .‘ ‘ * (5) ~kc-trans~er-termfnate~~a-~e~~t-te~~ey-~d-~et~*s #e~-e~~gi~a~~~-~~~eed-Pt-~:Pn-~ein$-lt?ea~way;- The transfer terminates in a joint an original described in (b)(2) transferor's above and the interest law in whole or in part It shall joint be rebuttably tenant originally placed tenancies other above, after than an original transferor's or to all that each as of March 1, 1975, the interest received on to joint March 1, 1975. terminates feror(s) of transferor(~). is not applicable The transfer and the interest tenancy by operation original in property tenancy This presumption vests by the assessor an interest in joint created (6) in the remaining presumed holding termination. interest a joint interest is transferred the remaining tenancy interest, described to an original joint in (b) (2) trans- tenants. For transferors Note: joint tenancy rather than during shall also be considered The statutory tenancies change in ownership for consists tax purposes of separate than a single -(7) five for afforded that of the joint is of an undivided provided any assessment accumulated treatment contemplates estates transferors. a joint tenants estate. The transfer percent original the year purpose that transfers to affiliated of determining interest of less of such interest transferees shall the percentage ferred. 10 10/12/79 be trans- 1 For nurooses shall include, of this but not by blood or marriage, business associates, under . subdivision be limited other common ownership to family than partners, affiliated transferees members, the transferor's joint or control related spouse, ventures, corporations or any combination of the foregoing. When the assessment accumulated year total interests five transferred percent interest transferred to a spouse, property represented by the or more, only any exclusive that accumulated during of any portion of the interests shall be reappraised. (c) A transfer (d) The creation, able possessory term is whether of equitable renewal, interest a change for by a reservation exempt fef (e) the riqht real or not as in ownership. or assignment exempt except real property when the or an estate for deeding of a taxfor any interest, life, is created the property to a entity. sublease, ep assignment use and possession and the trazsfcr constitutes of the a change or - termination of taxable lessor's or nentaxPtbS:e interest in ol-nership of in any of rca3 prepert~ foliosas: sr-btease The creation? er af a 3eese er' a te-rm 4n eksess &Fikerest tax in an instrument to beneficial proscrty iptterest years The creation, leased (1) in governmental property is a change sublease, in ownership an estate tax title ef &35ai3&eFseCir or ass+qlsmenk sf a taxas3tc ym3aessery %E Fea& pF=epeFty &SF a *earn 8~ Cke remekder &:9 years of -- $53 a ekanqe a leasehold 11 interest - &a an~lersk~~ in real -- 10/12/79 a&-4zhe proocrty for 5 . < . . . . a term --I_- 35 wars or T-.oye or the --:-a rernainizg terg of 35 years -mm with --- of leasehold is -- ’ interest a change -in which transfer of -- a leasehold or more or the ----&-..__A had an original -- ----term of interest tcrnination of 35 years or c- more of).-enrship. (2) The creation sublease e2? k.ke &ease remaining is in term, a change in -4k$ wle of taxable regard~eZ3?3 Of the options, of -- less than Wrrn p?i.th a. -3fi Year? ownership* h,tr&?nG!cr 35 El 3_e34,93+-3 4nterPcst 43 a ~ea~c $+3y ikt3 years aI+3 -in taxable a lease subiec- t Ato .__ prorlertv renewal including interest a ~CSSOP'S real interest %te-lpca~s with a remaining term of less than 35 years, including -9 -mp-options, is not a change in ownership: regardless --- of the term of the lease. --_I (3) The transfer a leasehold a %:eetse far Property ' of -- of *fi *ana?Ae Original p~eperCy or assignment bP &sS renewal a praperty 32 4he entire &:easehs~d 3~ 5~33 is seY ‘cet k-3 prsperty w ehmgc tran,- -~'eYed~ in 3WBepf- ine&tnding the ~nb,er~s~t;- te+ elnc 4frt?t?!.3sc3yg+ .!t &33i?esr~a iFltere3t 43 py3?ty *f3 gne gy mgye &:eat;iles fifi exeef3s gfE &tg ycayn 12 eub+=~ @l+i gRk% 6P 10/12/79 .. ’ , t4f se 5;‘CAPS 3,’ &cc33 ia mcxfe $mslefJ +x3 tkc ship, o+ 4he exten4 revers$awapy in 4he p~q92~tyirt+jeet 40 the end tg . 48 yertrs i.ac&w2inq 4he ex4enb Q’ne 3eestk3~:d rt3b=jeet 4s a”lc se%SF-f3) E e:‘aetnye ?i:n 3meYQn%e~est-f3$ in 3~ea5&+ 3$ Che pmperty exec95 35 4ran?3~exxcd~ inCePeJCfs+ ipk 4he prspexty ‘35 36 years OP 3eT337 . The transfer property which -pm--- subject is for or --- more H&CT a period -_- z change_ of fhc determinatian section shall It shall not of -I_- the include in of -7 only and one 35 years to the -m to a lease(s) -- or extent of --- less than Star a 353asa e?t skal% lx? pt3P3tlaat ct.3 t?lc pruvP3&ens options fact term -of a lease written be conclusively the homeowners' renewal -35 years 23 ati! 4h',i3 eedc7 The calculation for ownershin real taxable one M---v OK more of 35 the te:lm of pesses3iun Q Ces&33e pas3es3aL *-J fz?-terest of 6cetisn than - a period subject in leases, of I_ pless is for --- m the interest to multiple of which is -- moreP of -- of --- a lessor's exemption on the such renewal land renewal presumed which exist purposes that all 35 years in homes eligible land have whether any contract or or agreement. 13 of this -- options. are on leased of at least options for 10/12/79 =@+ uforeclosure. (I) or deed of trust Mortgage change a sufficient (A) After in a-mership the Period not has cause Deed of trust tne (3) right the of - possession vests shall as of the mm- in the purchaser. -in lieu of a trustee's --m- by -- a trustor constitutes a change -in ownership. sale A Cax e2&3 kf3 We etato 39eap3w&sa&~ kmt$ 2 se&e by Che &ate 35e2ppraifm&r ame sale has takef3 p3aee7 se&e stn& tan e&er arig&~ta? Yne original by trustee's +t+ Tax de& ease in in interest. & transfer foreclosure is has passed and property vests foreclosed asker action or when title successor a reappraisal date PF redemption been redeemed, debtor's by judicial only: of (B) Upon redemption (2) foreclosed The redearns reajjq3saieaA gE9m kke w&U set oawe eE Law-deeded w&U et&e take pS;eperQ wi;bl wketbn; the phaoe ei5 a mw purcrkases ewaes firem Cke sk&et i% CkGlR~Q 6X4 G*XZlQS&&3 Gc6UXbi; UPOR ths? -LQ 2hGxS v&v*03 tFU6L ereak&sn 9s 423evasabBa the hzlaa% skacqa et2 a& a ia by c&?&e t.he &Rew%3& v&w, ag ~322 page~%.y 4a7 a r;evs?aab&e S&m$&as&yy 4Ft35&? b&3 ~%933~9~ QeAeb&&-d.%ea a oka.aya ame~:t~k4p ps?eedena, BajBBS@ am2 hke Csmde~ daes 82-tbarest $9 bke nak 83sm~~ ~&&ah &.wf?dia~e 14 eMAk3593 bsievesj in up5 2nd af swReaek4p* Cks dCk9 ah-s9ez paasees&aa E%vesatfs# afe ~3ee3szkkiimt wZ3aC eR+pi?swIE 10/12/79 A x-f33 95 a s&Y . rescltin~ sale to or deed to s-?u -1 state ----II_-shall not -_L- be considered state ---m-10_-- is 2 change -tax from --.- delinquency. be the and redemption by the former assessee 1-Iclanqes However t 5 -in ownership, s ~t..~%her to the -in otvmershfp Transfers original requiring OP’@O ----A-' a net,~ owner cxmer reao-praisal as of the date ----u-w- the sale. em-fag Qg reaX p- rapert and temlnatio2, - creation Trusts is a chanqe -- y* --. to a trust &J-J E transfer of in owna,rship 'w--w at the t$mc of -- transfer unless: (AT The transferor or _)__Ithe beneficiary present The transfexsr EfciaP & interest(s) trustor a the transferor's of (A), of a trust -- ownership unless: (Cl UN exercise appU.es of the --- l thereof was ----- for constitutes less the p ropert y reverts 'S spousa 0-r I_(B) the exemption transfers and meets another E or p ortion trust applies. transfers to - (B) t --(A) the and on termination -- or -w the trustor ifitersp0usal interspousal is from one trust --- (2) The termination _Iduratiion and --IU_Ithe bena- does not exceed-- ',2 xears -- created afforded the requirements years the reversion duration. (E) The transfer in or - or - retains (I)) The exemption z chanz spouse -is the of -- the trustl is revocable, (B) The trust (c transferor's or -right (C)a termination of than to I_- the afford& results revocation. 10/12/79 from 12 of --(3) A change --(A) a revocable when: transferor or-the -_I_ present beneficiary nor -- transferor's the revocable 39% (i) trust of - becomes transferor's w is -- a present zeal is held 5 partnership constitutes pas?taera 05 regardless (j) stock(s) E -or becomes the the transferor of an ir--- in fseal eo z%%mz the title in a -- or gkoperty entity preptrty 5s enned ail~.PCien a ekange The purchase in eP 0mez- or transfer Eartnership(s) continuing of partners, reference in real -- e~td my e013st&b&s3e to or in the or without person PaitntrshPp p?&m!ty~ op deletion _irs partnership with partnersk4p Cke3~&0~e~ interest(s) Cor>orations. of whether any other in ownership. tks Ceaa~ts addition is contributed of any_ interest 5 partner BHte pa&2iaePek&p the gmershig the beneficiary partners, The transfer a p~t~989p~ an ownership e-q,, unless in the name of the partnership a change dek3Bbaa of -s occurs or which is acquire& by -a partnership by the partnership is a chaxqe in owner- property, to the partnership. ee also (a) neither which prsperty name of one OP more individual &i&p remains or -- Real or okhmwise, of swh By the irrevocable trust, spouse gewwd . the property ' property spouse of -- the Partnership. . purchase & trust trust. 3 3&$fe$ ship -in ownership is not a chawe --- in m-opertv. --(1) The purchase is not a change ipI ownership --- transfer f-n corporate 0 gz corporate ppo~Pt~ unless : 10/12/79 . I . --(A) The stock c3cpz-hSl~-*e -is -.in .9_ ---- - --.- as defined -^ & Taxation Ectior: -- Cede, elusive c-- ri_gh< or -- a -portion (2) partnership, person transfers obtains stock, Wamsfers- control * other legal entity or of one or multiple of more than exclusive real _L_ fncl&fnq corporations, ths -wexw-m c6%p~>~z~cs: a-.-px-‘aPere’*~ -e-s. as the result of another of -- to .-- cm:eys thereof -.c $E any other directors, transfer ---I_y- cccx?,nancy -a,-- (B) One corporation, voting -?sgEzation, 17255 of the -e-e I2evsz:u.e -and -- -- and -..the --to hozsi7.q --_I of any shares 50% of the owned by corporation. ~rqsest~ 02 arzxz~ affifia'ied SeMeen k "l:n,sss r;i&e to achieve -__l_sn..I_- E corporate cxqxm?b,lon w !zzXzz~ EoXja- -u_L (A) -I__ The V@kixg -* ---yu St&k Qf +-SC the - ~2~ k.&2 ‘izansfaree ---- t3Wl?%?d rti4z ’ n PC ’ .I9 2. Ca>~:‘~i~~~~:J c<I? ,~~:!..T:C;~~ z< _-__..--..-u --a z& _ _._L -..--ownershic --(3,) T& * -to -a ccxrmx3 -- co;nnnon oarei?t b votirtg or chains -_I--- Pstock of gx?mfer Eporation J-T* are --3tch ..k d an parent:; d-c-.e.-m.-a.... -.e ccrf3or;:ti.CjZ .c-_I of a$ Iii _u cre&atecl 5h.z 0s OW?Y g-0 a___ d?,B9e@tl~ -corporation in the --_M- carpsaat%~n~. ---- 17 10/12/79 $32 * chain each SIMPLE EXAMPLE PARENT CORPORATION All underscored OWNS A transfer other property of those corporations by P, A, B, or C tr, any of the e.g., . a transfer by C which is wholly owned by A and B to B which is * wholly owned by A and P would not be a change in ownership because 0 three of real 50% relationships would not be a change in ownership, and the fact --(3) The purchase cates in a housing -- vided the requirements or transfer cooperative stated P otms of stock - 100% of A. or membership certifi- is not a change in ownershi? ---in subsection (a) of this --- pro- section are satisfied. (k) Interspousal of Sections not shall limited transfers. E throuqh include Uotwlthstandinq any other provision . 471 of this code, 5 change in ownership --- any intersDousa1 transfer, including, but -w not to: _(1) Transfers>0 -or the -- a trustee surviving trustee --_I_of for -e the beneficial spouse of -- a deceased such a trust use of a spouse, --Transferor, to the spouse of -- the -18 02 b-1y.5 trustor, 10/12/79 . (2) Transfers (3) Transfers which settlement The creation, transfer, in 2 spous6; connection of - with dissolution or or - termination, solely between interest. do not transfers of or - decree separation, any co-owner's The following death spouse agreement or - leqal of - upon the 02 former of II- a marriage spousesI -fw (1, effect --I to a spouse a prc2erty 14) take -m- constitute a change of ownership: (1) The transfer +5+ --(A). Any of bare transfer title with the sion or profits. hm&ty -fS+ (2) f4+ 6~ jaGIt Any transfer caused to the Arty transfer enehsive property of istaek whSe)l does right net to or portion creation, the purpose assignment, interest use, to ereatc not coupled occupancy, posses- er tcrmfnate a eem- tenane_Y Qnterest-; by the of substitution a security or emarrg =jeint inve3mtary Any transfer t&Se terms between V&UBtaY~i f3+ transfer pre;serty pursuant in the to irrmediate for property. of a security right fnters>ou52& e.g., assessce to the resulting transfer or rccozveyance 33-f -*fr title, to an existins Of perfecting -fGJr (3) ^Aillr’ legal of a trustee or trust tePtants instrument. whether or by eperatiem e5 %:a~-; of ct carporation vt~tcd convey aeeupaney ta the with transfertcfa3 and pa3sessian the of the thereof-; 19 &ege3 10/12/79 Pea& 1 . . . Any transfer by an - instrument transferor, estate ’ whose terms for years estates both section relatinq spouse or ----- both of them an or When such reserved -- an estate for life. -- terminate and if -m- otherwise, of -- this transfers a change in ownership shall or other transfer of a group or - units of participation COIWIIO~. trust fund, or - other collective be - of -- the shares trust, pooled investment fund, fund established --- IYJ a financial A~J contribution of real property to an employee benefit --creation, vestinq, transfer, distribution 2,~ plan or -- the institution. of or beneficiary's -- a participant's shall in such a plan. The terms used herein --termination ascribed meaning Security to them by -- property following =@% 6a&ew havs -- the Income Act of 1974. l -- as of the date dates shall !Phe-data in an esc-raw eantraet interest Employee Retirement For purposes f%-+ (m) Date of change in ownership. the do occurred. redemption Any purchase,. the provisions and interspousal to trusts deemed to have real to the transferor's not rxovide (5) reserve of of change in ownership of real . a31 panttiesf have been 20 . property, be used: instrkietkms or the &ate the ca3enliah cm&e of reappraising have bcert met &emenka-a5 mtts 10/12/79 a 3En the event rceardatfan Sales. (a) tJhere -_I- the trznsfer shall change, - W-is presumption 2?=different structions of -- $49 Snter cnteated p artiest -is accomplished the date -I__- presumption the and/or transferee beneficial in- elements bx an -. unrecorded obtained use shall of ownership rn2 be rebutted & the bz rebuttably change. evidenccl right This proving a dif-___I date. The date death all proving have been met. presumed ----to be the date Inheritance of owner- by evidence be the date to of sale e-c---- to possession (3) recordation have met in escrow -or the essential --- document, Leases, evidencing -is evidencedb2 may be rebutted --1,3 (_h) Where the tva"Pfer (2) deewwnt presumed -----II_ to be the date date -----w a contract ferent be &seep- document, .--m the date of recordation be rebuttahly ship cannot she&S be the date of of the deed or s5mihr of --_II-a deed or other of detcs the ekangc 4n ennership tained7 (1) the foregoing that the (by will of vives the lessee or has the right to possession. succession). intestate The date decedent. trustss. er revoked Yhe date by the 21 the truck Pnstrmcnt trastar: 10/12/79 is . .. (4) . Trusts. (A) Revocable. (B) Irrevocable. The date the trust The date property NOTE: Refer to subsection (h) for 22 trust becomes irrevocable. is placed transfer in trust. exemptions. 10/12/79 . ., m NEWLY CONSTRUCTED PROPERTY Rule No. 463. -M 4l value of such value underline ) for value adding the full value full 0 J on the value of preexisting taxable portion whether taxable will This only. that constructed, constructed “newly date of completion. 1 -is newly constructed ascertain the thereof, (a) When real property, or a portion ---P after the 1975 lien date, the assessor shall full All ’ it establish of the property total property which is newly shall reduced be determined to account is only "Newly constructed" the for The construction. that value from the new construction and does not include ----I_ not associated with the new construction. I_fat+ (b) by to the taxable removed during of ne:q construction The or alteration. of new construction property as of the a new base year full is an addition -2 .;;e of property value property" 02 "new construction" resulting value increases means and includes: (1) Any substantial i All u+der'?line cluding for fixtures, the purpose gutters addition to land such as adding of !kandScapfngi ment so as to add horizontallv as ---- that in- land than fill, retaining or sewers to land or constructing ing or swimming pool or changing square or improvements, footage or -to incorporate term is defined sin this 23 ekker walls, a an existing or vertically an additional curbs, new build- improveto its fixture, section. 10/12/79 1 . . * : I -(2) A> substantial constitutes results physical a major Site establishing Altering the way the property is to land of rural or used. to be considered land a residential dry rolling, a vacant In any instance erlP -nc land new for the purpose of subdivision. grazing land to level irrigated land. Preparing All which are: development crop in of land the of alterations construction of I- rehabilitation in a change Examples alteration enough in which to require alteration lot for use as a parking an alteration reappraisal,only shall be added is the to the facility. substantial value base year of the value of the i pre-existing land value by appreciation than caused or improvements. new construction Increases or a zoning shall not be enrolled, 1. Land value 1975 = $10,000 2. Land value 1978 = 20,000 3. Value 1978 = 5,000 = 75,000 = 90,000 4. of alteration Value of structure added 1978 1979 roll (1+3+4) value 24 - - in change for land rather example: (must be adjusted to reflect appropriate __ indexing) 10/12/79 . to land wkich*do --or which do not Alterations habilitation way the property the or changes structure that ecruivalent wav it it the for the annual interior or the or the (5) Any sub'stantial substantial tution e.g., of the physical the substantial any change of the in the that makes Only the alteration shall indexed base year value cfualify as "newly con- painting, addition land replacement of e.g., or roof siding to improve- of worn machine parts. rehabilitation, renovation any fixture equivalent and repair, of aluminum physical of pcriormed of agricultural replacement modernization used, maintenance preparation or exterior coverings portion or reconstruction of normal purpose routine ments tkat is co-".str*y,ction structed" the structure. alterations from con- or portion or a restaurant. cost, the to the to make it appropriately pre-existing (4) Excluded which to a warehouse necessarily in re- in reappraisal. thereof without store not of the 1 is structure as a retail be added to the / \; been altered had of a noz building usable result the l:av in \Thich is use6 or alterations value, ' All underline not a new structure of to an old alterations in a change or any portion equivalent thereof a major of any improvement improvement substantial constitute result used shall alteration (3) Any physical verts is not which converts of a new fixture it to the or any substi- of a new fixture. Substantial comparing equivalency the shall productive be ascertained capacity, 25 normally or by expressed 10/12/79 (c) -in units to its B hour, original or augments the rehabilitated productive For purposes an improvement of -- of this capacity. section, "fixture" whose use or pur?osc the process fixture is defined directly or function of as applies a trade, to industry, or profession. (d), New construction appraised 0All! anderline at progress in its full value date thereafter until time the portion entire structed shall (e) For purposes the date for use. this to the propriate is all of the date his contract of the whether of final the official, date the -of completion is real or testing consideration in the contractor in the a or shall by the ap- absence of fulfilled case of of machinery equipment. 26 is available property inspection or, con- value. of use, the prime obligations, completion date be at which is newly full thereof for the its shall and each lien which the available governmental inspectidn, at or portion date date of completion, section, property thereof be given date of property In deternining portion such the lien on such date be reappraised of the on the 10/12/79 fixtures, and m Newly *. constructed I which is reconstructed value of such tially the Shall 1. Xl underline value 1 a Enroll the if the Item 1 above, For of the value any newly of yestored. found cons tructed new construction purposes value less of than the asseE;sor taxable adjustment, or restored property the value above plus if is found in this in Item 1 property it the market determined has occurred. subsection reconstructed only, or repaired and wbch l use and quality is former inflation market value its the or Enroll value at appropriate current market equivalent, . restoratIon: property the the current full restored or minus Enroll its noLL substantially . date followlr,g are lien 2. that property, to on the plus 3. I values not include real property . the full a disaster where is substanas reconstructed, . the disaster. value prior to after real equivalent If does -_L property to that 1s substw . which 27 existed newly in . constructed a timely manner 11-9 e 0 uivabent prior to the property fohlow. . X- disaster, 10/12/79 . \. (9) 1 For property sult under of disaster completion of the All underline as of reconstruction which of reconstruction land the and existing date of the completion 1 transfer in equivalent" following be determined accordance test but with without normally shall in ownership or restoration the regard applicable as a rea-- prior or restoration, change shall new construction ownership improvements the of any reconstruction ing changes or - restoration ;?hich to the the v,alue be determined but tJ-$ value . occurs fo1&- as of the date provisions applicable to the "substantially -to property to reconstructed a disaster. 28 of 10/12/79 1 s . . Role No. 464. Article XIII A does as not 1, July exemptions Code) repeal 1978. applicable * EXEMPTIONS. 110.6. any The Re~enve property tax property to a specific and tax exemptions rate property. Taxation Code. granted sholi Examples or authorized apply to the of the application by the current toxoble Homeowners’ for exemption. Veterans’ exemption. of the current taxable assets contains rate The will for to tile current Disabled qualifying tax sum less of 25 rate reconsidering toxoble value percent of of the the are of taxable value ond Toxation property tax of the exemption of property value taxable of property exemption. taxable in Revenue the veterans’ the granting vo!ue to the current applies the qualifying prior for the assets Code Section 110 exemption. Article to 1978. veterans’ The ond for 100 non- XIII property exemption veterans’ for Adopted the exemption. disabled Juos The veterons’ 29, 1976, eflactiva property pratperty July tax tax rote opplics exemption to current taxable the of the less volue value A tax less of the 3, 19711. (Cal. A&Y* Code) NC'NPROFIT GQLF COiiRSES. When appraising real proper ty used exclusively course in aceox~ancc Article purposes XIII of the California for the 1973 lien --------property date on the basis to any mineral of the date to anli of -- XIII A of the California --em lation. ascertain plus the provisions Constitution 29 golf of Section the value the full un2er norqrofit the assessor ~3 of the appropriate qualfficd for the provisions Constitution, of such use, such property regard witil and t!lereaftcr rights-7 property exemption, Rule No. 465. without any exemptions the exemption. of History: property exemption full cash value ps defined determine the limitation for no provision applies The the homeowners’ percent va!ue less t , qualifying (b) Constitution value of partiol follows: (a) (c) ‘, 110, 110.1,110.5, before or Adm. Secfions Reference: on (Cal. ‘ . . value 10 of shall of such attributable base year-r regard3ess tke eenstitfltian of Section or -- its prev*&ens7 2 of Article -- implcmentinq 10/12/79 leqis- 1 (Cal. A&n. C&e) AND VINES Rale No. 466. ~ALOATIDN IiND ENR6LLFIE'NTOF TREES i3~* Breee 7 v&aes7 Btlskef3-f 8~ 6Cher Fke base year vague ef g33.&+ a& f?eFeim&a&s wkept p?;ars%ea &Ff erekar& 7 qmve7 or nut enforceably restricted 652 vineyam &3m wketke~ be the most recent shall of the following: All strikeo-tit 4 (a) The full value as of (b) The full value as of the date of planting, (c) The full value as of the date The full value of the 1975 lien and vines trees t3ana kit8tian Gfien date fa3&eGng the expGrRt5en All and nut -- orchard All under- subject be valued for nually valued regard to the provisions California annual percent respectively -be exempt as provided enforceably to the provisions in by law. -_I_ trees exempt and thereafter of section mt%3 Chc and vines as foPlows: restricted shall of section 2 of Article be an- 470 herein XIII without A of the Constltrltinn. (b)bThose cnrollcd pursuant Section XIII, 05 4ke cxempt*on-; previously in land by Article when planted the 2.979 date (a) Those planted line a>5 vines to tax, or sket3S not bc cnraScd fo rn shall or vineyard Upon becorzing shall treos . of a change in ormership. exempted 3 -fi+-; 05 the State fruit date, planted at their increases in land base year not value in the consumer or at their -- full value for --- enforceably restricted appropriately price index the current adjusted not to lien exceed date, is less. 30 10/12/79 shall be to rcflmt ixo whichever c (1) w-- The base year enforceably subject to commercial valued on land the I not original and vines shall --- unless base than year trees on enforceably enforceably which the as provided same base year Ibe1975theirin case production annually taxation other Perennials, trees restricted in which (c) for land value base year be the that year is 1975. year they was prior to restricted land shall they are If 470. shall planted as of the date after for be valued lien of planting 1975 their be planted and have date shall value. 31 not became planted they unless in land --- and vines, section restricted, as the case their in planted 10/U/79 Rule 467. (Cal. the 1979 lien -__L-ppy__ date For the f&A value of all in Section 21 of this as of that date. to March i, the date value full granted by the e as of ( be appraised of the renewal, or assignee . ur assigned any term shall interest of the completion for of any reason ewrent ypr0priatel.v prepared full extension, obtains the right in to a value that of that covers lower with is less &a&:3: rcfket to the -m--w value 32 shall lien shall are than be valued as interest its in one lien date, . 4!t&& cask for be enrolled. 10/12/79 which . course cIteck&nes +!VZQ: dcekkiple datd the -4-63. Section than the rights When improvements more any possessory that adjusted in land interests accordance assegtvmnt of exercising of construction. a period value held posscssory the be appraised current is beiq subsequent value subleased the purpose for possessory of co.nstruction the extended, as of the date erected holder shall renetrzd, the sub-lessee by the value full 1975, or use of the property. of the date base to March I, their at ascertain as defined newly created be appraised &n efceess eg ten years fiTew improvements for interests prior interests shall . interests occupancy Xf the pnssessory code and created shall Or as of the date , they taxable the assessor of creatidn. at their owned and thereafter Possessory 1975, Possessory 7 'for & terlrt to TAXTIULE POSSCSSORYINTERESTS. Adm. Code) changes trer3ztie lsase year $& roll . As adopted 9-26-78. Ruta No. 169. (Cat. Adm. Coda) MINES AND QUARRIES. . Reference: Se;tions 110, 110.1, 110.5, 110.6, Revenue and Toxotion Code. Organic ond inorganic minerals and rocks ore natural substances of the earth, and are crassifisd as fond. The volume of minerals or rocks of acceptable quatity fhat may be removed from the land The creation of under existing economic and operating conditions ore classified as reserves. to real property and the proreserves by exploration or by development constitutes or: addition a removal of real property. duction of the minerals or rocks from a reserve constitutes or quarry is its base year full vofue adjusted for the depletion of (a) The full vclu- * of a mine reserves. The value of the depleted reserves shall be determined annually employing the economic dato that applied to the estoblishmcnt of the-reserves in the bose year. (b) The bose year History: Adopted Amgnd.d of new reserves shoff Jun* 29, 1978, sffsctivs July Ssptsmbrr 26, 1978, offactivs be the year 3, 1978. October 33 in which either development or mining 2. 1978. 10/12/79 occurs. . Rule No. 470, Reference: Al! SCC~~ODS open-space 110, lands 110.1, 110.5, 110.6, “enforceably and Toxction Revenue ing (Cal. Adm. Code) BWM-SPM?ET RNFORCEARLYRESTR%???%I" PROPERTY. Code Revenue within restricted” shall Taxction dnd hove a base year Code. the m=aning restricted of Sections value by one (o) If enforceably ship, the restricted base yeor full prio: to the 1975 I ien dcrte with value is the 1475 restricted no subsequent if on enforceable restriction is entered into subsequent to the 1975 lien dote and no change in ownership has occurred, the bose yeor full value is the value as if restricted ‘in 1975. (c) If o change in ownership hos occurred subsequent to the 1975 lien dote, the base yeor full value shall be the restricted .vofue redetermined OS of the dote of the most recent and Taxation When an 51285 in ownership, regardless of the effective dote of the enforceable cash open-space contract Government vo!ue as shall modiFied be the History: restricted Constitution Section current property of Part ---m- Lose Adopted Amended sx-tmencing Pm and Taxation onnuully year concelled, the full annually contract Revenue value is Code, modified on open-space of the mte. restriction. Subsequent the income 423 (b) of land attributable the Revenue Code. of the When in owner- change value. AI1 base year restricted values shcrll be modified onnuoily by the inflotion improvements such OS wells andlo;.d ieveling, will be valued by capitalizing using the ccpitolization rote prescribed in Section to the land improvements cash follow- (b) change 426 of the methods: All strike. out full 421 and 422 of the - determined restricted pursuant ccsh by the is not f;fI Juns 29, 1978, effective July September 26. 1978, cfrective rate. .mod;fied 3, 1978. Octo’Jtr the the provisions lond of shot1 be Sections the oppro$riote the provisions 51280 through base cash be phased value The onnuo!fy vo1u.e out of the of the by the under Jond” land inflation shall be the of Section base by copitofizotion year of full income rote. 2, 1978. with the 1979 lien date, Pm-pursuant to Section --8 of shall in -the -case of m open all nroperty CnforceahlY --Article XT11 of the California __c-- space -land be valued for tax purposes pursuant -to Article 1.5 (commencing with 421) or the unrestricted base year value factored to the --lien date, whichever m--m--is less and in the case of historical Article yeor rots. it shnll “the irrffotion vcllue to of inflation renewed Code; by the value 1.9 (commencing with 2 of the Revenue and Taxation 34 Section 439) of Chapter Code. 10/12/79 3 When enforceable renewal as provided Code, the full value restrictions by the Government cash value as modified are cancelled annually referred by non- Code or the Revenue and Tax&on to therein by the inflation 35 or terminated shall be the base year rate. 10/12/79 _ L . 1- i Rule No. 471. (Cal. Consistent the intent Article with XIII Adm. Code) TPIBERLAND. from the schedule Taxation medi*4ed timberland value in schsdule Section after March 1, iSDO, &all class change in ownership. Values determined the lien portion date thereof, &&&aDkm its and and &al% be board-adopted schedule in this succeeding vahe shall timberland which Chat value January changes ownership class 1, on or from the board-adopted in effect section as of the date shall Each year following ska&& l3e medi&ied of be enrolled on or a enactment hy the mmtia31: FaBe+ 36 be site the date when the timberland, ownership. ie it3 ex-meEek4per!as that base year value be ascertained value changed ef a new $ase year date most recent by the Eoard on or before as provided next has 51110 or 51113 of schedule a %kaftffe fo r timberland Base year values site which fate. 462, to be adopted 1980. timberland land for the 1979 lien v--p434.5 of the Revenue value wide~q3es from the most recent ascertained sticfke out class of '7 19393 t&mker&aRtd T 93.5a pesB&e13 tkewixd~ 632 eUm3fsi5,e is defined for from the 4933 statutery site 9~ e,r a&erz &trek phrase in Section am3uaMy by the inf&.atien p~ekat3ed~ All contained 3(j) and the legislative to Sections be ascertained Code and thereafter board-adopted *& Constitution pursuant Code shall Government of Section the k~~ss: year value thereof, been zoned as timberland the of the provisions of the California interpretation f - c 10/12/79