1020 N STREET, SACRAMENTO, CALIFORNIA

1020
N
(P.O.
BOX
STREET,
1799,
SACRAMENTO,
SACRAMENTO,
CALIFORNIA
CALIFORNIA
ERNEST J. DRONENBURG,
Second District,
San
95808)
(916’) 445-6479
WILLIAM
Third District,
Fourth
JR.
Diego
M. BENNETT
San Rafael
RICHARD,NEYINS
District,
Pasadena
KENNETH
CORY
Confrofler,
Sacramento
August
DOUGLAS
Executive
7, 1981
No. 81/91
TO COUNTY ASSESSORS, COUNTY COUNSELS,
ASSESSMENTS APPEALS BOARDS, AND
OTHER INTERESTED PARTIES:
PROPERTY TAXES RULE 462
On May
public
Change
August
5, 1981, the Board of Equalization,
following
a scheduled
hearing,
adopted amendments to Property
Taxes Rule 462,
in Ownership.
The amendments to the rule are effective
12, 1981.
Attached
rule.
for
your
information
is a final
printed
copy of the
Sincerely,
.
ttw
%Janice Masterton
Assistant
JM:ms
Attachment
D. BELL
Secretory
to Executive
Secretary
‘
b
,
State
of Coliforma
BOARD
OF EQUALIZATION
PROPERTY
TAXDEPARTMENT
PROPERTYTAXRULES
Chapter
1. State Board of Equalization
- Property
Tax
Subchapter
4. Equalization
by State Board
Article
3. Taxable
Property
of a County,
City or Municipal
Rule
460.
Reference:
(a)
GENERAL
APPLICATION
Article
A,
Sections
taxes
rate
(b) The
Sections
any
1 and
year
two
full
YEAR.
year
Code,
California
XIII
A of
the
cash
Constitution.
the
Constitution
current
taxable
value
which
provide
value
is then
for
a limitation
of locally
modified
on property
assessed
annually
real
to reflect
property
the
infla-
per year.
the
govern
A.
construction
of
The assessment
year 1975-76
serves
in which
real property,
or a portion
structed,
or changes
ownership
such real property,
or a portion
(2)
2,
percent
following
definitions
1 and 2 of Article
XIII
(1) BASE
assessment
1 and
for establishing
to a base
not to exceed
Sections
2 of Article
and a procedure
by reference
tion
XIII
Corporation
shall become
thereof.
the
base
year
the
terms
in the
rules
pertaining
as the original
base year.
thereof,
is purchased,
is
used
in determining
FULL
CASH VALUE.
(A) The full cash value of real property
means:
1. The “full
cash value”
as defined
in Section
110.1 of the
as of the lien date 1975 for properties
with a 1975-76 base year, or
the
Revenue
to
Thereafter,
newly
con-
full
value
for
and
Taxation
2. The “full
cash value”
as defined
in Section
110 of the Revenue
and Taxation
Code as of the date such real property
is purchased,
is newly
constructed,
or changes
ownership
on the lien date next sucb e enrolled
after the 1975 lien date, the full cash value
of which
shall
ceeding
the date when such real property,
or portion
thereof,
is purchased,
is newly
constructed,
or changes
ownership.
(B)
If real property
has not been appraised
to its appropriate
base year full cash value,
assessor
shall
reappraise
such property
to its full cash value
for the appropriate
base
may be at any time, notwithstanding
the provisions
of Section
year lien date.
Such reappraisals
405.6 of the Revenue
and Taxation
Code but 1975-76 base year values
must be determined
prior to
July 1, 1980.
then
the
(3)
value
RESTRICTED
VALUE,
prescribed
by the Constitution
Full
Restricted
value
or by statute
value
means
a value
authorized
(appraised
value)
lien
after
standard
other
than
full
cash
by the Constitution.
means
either
the
full
cash
value
or the
restrotedFLkkeVALuE’ s
(5)
value
a
8-7-8
TED
P
INFLATION
is determined,
RATE.
the
For
full
value
each
of real
change
in cost of living,
as defined
in Section
that such value
shall
not reflect
an increase
preceding
lien date.
date
property
the
shall
lien
date
be modified
in which
to reflect
the
base
the
year
full
percentage
2212 of the Revenue
and Taxation
Code; provided
in excess
of 2 percent
of the taxable
value of the
-l-
Rule
lien
460.
GENERAL
APPLICATION.
(Continued)
(6) TAXABLE
VALUE.
Taxable
date as required
by law or the
(7)
PROPERTY
TAX
tax
limitations
History:
June
29,
Adopted
September
Amended
January
25,
Amended
August
16,
(b)
Rule
460.1.
Reference:
(a)
and
1975
For the
ment roll
(b) The
“periodic
1979,
1979,
(b)
110.1,
Revenue
fiscal
that
value
(IS (b)
is the rate
1 of Article
calculated
XIII
2,
22,
Applicable
1979.
to assessments
Amended
!b)
(2)
(A)
for
1
and
differences
and
thereafter,
a 1975
base
from a “periodic
differed
from
the assessor
year
appraisal”
the 1974-75
shall
fiscal
shall
at the value
(d)
as its 1975-76
the 1974-75
and
or
construction,
not be considered
The
a result
factors
base
year
base
value
year
1975 lien date.
erties
that were
Such values
reappraised
thereafter.
(6),
repealed
made for the 1975
assessment
roll
be presumed
to have
year if the assessor’s
1975-76
interim
assessment
adjustments
as resulting
from
year
1975-76
lien
value
assess-
date,
whether
value.
been determined
pursuant
to a
determination
of the value
for
rolls
not
base
on the
resulting
designed
“periodic
may rebut the presumpwas not “periodically
from
to
such
equal
things
1975
as
general
appraisals.”
whose
1975-76
shall have that
value.
of any
of an assessment
and indicia
of fair
(b)
determine
appearing
(c) For the 1978-79 fiscal
year and years thereafter,
any property
or portion
thereof
value was determined
as a result
of an appeal
filed
in 1975 with a county
board
value
years
(61,
Code
and years
with
resulted
between
new
will
1979
2. and
(7).
Taxation
value
of a parcel
of property
appraisal”
for the 1975-76
zoning
changes,
revaluation
levels
with
1978.
1, 1979.
that year differed
from the 1974-75 assessment
roll value,
but the assessor
tion by evidence
that notwithstanding
such differences
in value,
the property
appraised”
for the 1975-76 fiscal
year.
Value
in accordance
A of the Constitution.
1978.
October
August
(8)
rate
value adjusted
for any given
lien date, whichever
is less.
VALUES.
year
value
3,
March
and
thereof
roll
July
effective
effective
tax
by Section
effective
YEAR
1978-79
when
1978,
BASE
or portion
the 1975-76
effectave
26,
renumbered
Section
for property
ornot
(7)
prescribed
1978,
Amen$ed
Th e property
RATE.
the ad valorem
value means the base year full
full
cash value
for the same
appeal
market
property
not appraised
filed
in 1975
value actually
shall be consistent
with
for the 1975 lien date.
(e) Determinations
of value
made pursuant
June 30, 1980, and if made prior to June
fiscal
year in which the value determination
ceedlng
fiscal
year.
for the
1975
lien
shall
be valued
by the
utilized
in “periodic
the values
date
or not determined
assessor
appraisals”
established
as
using only those
made for the
for comparable
prop-
to (d) of this section
shall
be made at any time until
30 of any year may be added to either
the roll for the
is made or included
with
ihe assessmen%
for the suc-
No escape assessments
may be made because
of value
increases
to the 1975 base year that result
from redetermination
of values
pursuant
to this section,
but decreases
in such values
shall
be
certified
to the auditor
by the assessor
as corrections
to the roll prepared
for the 1978-79 fiscal
yearand
fiscal
years thereafter,
as is appropriate.
HIstory:
Adopted
May
23,
1979,
effective
May
25,
1979.
-2-
Rule
461.
REAL
Reference:
PROPERTY
Article
(a) Section
2
reappriased
if
462) after the
possession
or
XIII
A,
VALUE
Sections
CHANGES.
1 and
2,
California
Constitution.
of Article
XIII A of the California
Constitution
provides
that real property
shall
be
purchased,
newly constructed
(Section
463) or a change
in ownership
occurs
(Section
original
base year. A purchase
is any transfer
of title or right to the use, occupancy,
profit
a prendre
of real property,
or portion
thereof,
for a consideration.
(b) Unless
otherwise
provided
for in this chapter
or by statute,real
property
which was not subject
to valuation
in a prior base year as required
by law shall be appraised
at full value for each year
it should
have been so valued
and an escape
assessment
shall be added to the roll for the current
fiscal
year or to the roll being prepared
at the time of discovery
in accordance
with the provisions
of Section
531.2 of the Revenue
and Taxation
Code.
(c) The prior year
taxable
value of real property,
or portion
thereof,
physically
removed
from the
site shall
be deducted
from the property’s
prior year taxable
value,
provided
that such net value
shall not be less than zero. The net value shall be appropriately
adjusted
to reflect
the percentage
change
taxable
in the cost
value which
of living
and then
shall be the lesser
compared
to the
of the two values.
current
lien
date
full
value
to determine
(d) For the tax year 1979-80
and tax years thereafter
the assessor
shall
prepare
an assessment
roll containing
the base year value appropriately
indexed
or the current
lien date full value,
whichIncreases
and decreases
in full cash value
since
the previous
lien date shall be
ever is less.
reflected
on the roll except
that taxable
value
shall
never exceed
base year value appropriately
indexed.
Property
restored
following
damage caused
by a misfortune
or calamity
is to be valued
In preparing
such rolls
the assessor
is not
pursuant
to subsection
(e) and not this subsection.
required
to make
Declines
unit
an annual
in value
to
the
will
indexed
reappraisal
of all
be determined
base
year
full
assessable
property.
by comparing
the current
value
same
of the
improvements
constitute
an appraisal
unit except
when
disaster,
in which
case land shall
constitute
a separate
fixtures
and other
machinery
and equipment
classified
appraisal
unit.
When the
current
lien
date,
the full
(e)
The
taxable
full
value
value
value
adjusted
in accordance
assessor
shall
on the
ate
inflation
year
1. The full
full value
2.
shall
Hlstory:
of property
shall
of real
lien
the
date
than
damaged
following
Taxation
restoration
value
of the restored
property
in which
case the lower value
June
29,
year
taxable
or destroyed
and
date
the
full
value
current
of the appraisal
lien
date.
measuring
declines
in value
For purposes
of this
unit.
as improvements
constitute
its base
as the current
Revenue
for
full
value
indexed
Land
and
caused
by
subsection
a separate
to the current
value.
by a misfortune
or calamity
is to be
If the property
is restored,
the
Code.
enroll
it at its former
value
plus
the appropri-
unless:
It is determined
that
be enrolled
as provided
Adopted
property
with
adiustment,
is less
be enrolled
lien
unit
1978,
Amended
September
Amended
January
25,
Amended
August
16,
Amended
November
new construction
in Section
463.
effective
26,
1978,
1979,
1979,
13,
as of the lien date is less than the indexed
base
shall
be enrolled
as the new base year value,
or
July
effective
effective
effective
1979,
effective
3,
has
occurred
in which
case
the
property’s
value
1978.
October
March
August
2,
1,
22,
December
1978.
1979.
Applicable
1979.
6,
-3-
to assessments
Amended
1979.
(a),
Amended
(b),
(b).
(c),
for
(d),
and
1979
(e)
and
(1).
years
thereafter.
---n-P~.~-T--l
-
-
_.--~~i.-___
_-.-----__
._-_
-._._
-
__
_
_
Rule 462. CHANGE IN OWNERSHIP.
Reference:
SectIons
60-67,
Revenue
and Taxation
Code.
(a) GENERAL.
(1)
There
shall
be a reappraisal
e
reappraisal
will
Th
that property.
the lien date
following
of real
establish
the change
property
a new
in real property
in ownership”
property,
and a transfer
of the right
in the
substantially
equal
“change
operation
of law,
of an owner,
other
the value
shall
be
by grant,
property
means.
beneficial
occurs
(1)
in the
is excluded
Except
whether
the
devise,
inheritance,
trust,
(except
as provided
in
name
from
of an owner
“transfer”
there
is a transfer
of a present
use thereof,
the value of which
is
transfer
of property
qualified
as a
transfer
is
contract
voluntary,
of sale,
involuntary,
addition
(1) (3) f or interspousal
of property
as used
the term
by
or deletion
transfers),
not involving
a change
in this section.
or any
in the right
to
IN COMMON.
as is otherwise
of a tenancy
(2)
gift,
when
to beneficial
Every
interest.
of the fee
so regarded
settlement
A change
use
(b) TENANCIES
in common
provided
interest
in subdivision
is a change
(2),
the
in ownership
creation,
of the
transfer,
undivided
or termination
interest
transferred.
Exclusions:
(A)
of holding
such
to
in ownership”
of
on
in ownership.
(2) A “change
interest
as of the date of a change
in ownership
base year full value and will
be enrolled
The
title
transfer
but
is between
does
not
or among
result
co-owners
in a change
and
in the
results
proportional
in a change
interests
of
in the
the
method
co-owners,
as:
(i)
a partition,
(ii)
a transfer
from
a co-tenancy
to
a joint
tenancy,
or
(iii)
a transfer
from a co-tenancy
to a legal entity
which
results
solely
in a change
of holding
title
and in which
the proportional
ownership
interests
in the property
(Such transferees
shall
be considered
to be the “original
same after
the transfer.
in the
method
remain
the
co-owners”
curred upon
of the property
the subsequent
Example:
a 50%
the
interest.
stock.
(B)
March
A and
They
Such
The
transfer
the
B own
transfer
a transfer
(i) held
1, 1980, and
(ii)
for purposes
of determining
transfer(s)
of the ownership
by
the
would
was
such
property
a parcel
profierty
property
to a newly
not be regarded
between
co-owners
for
or part
eligible
as tenants
as a change
all
for the
a change
in ownership
in the property.)
formed
or among
co-owners
was
of real
whether
interests
in common
corporation
each
each
receiving
has
oc-
owning
50% of
in ownership.
of property
of the
period
homeowners’
which
was:
between
exemption
March
during
1, 1975,
the entire
and
period
of co-ownership.
(C)
The
transfer
is of an undivided
interest(s)
of
less
than
five
percent
of the value
of
the total property
and has a value of less than $10,000;
p rovided,
however,
that transfers
of such
interests
during any one assessment
year (the period
from March 1 through
the last day in February
of the following
year) shall be accumulated
for the purpose
of determining
the percentage
interest
and
equals
value
transferred.
or exceeds
When
five
percent
the
accumulated
of the
value
interests
of the
transferred
total
interest
transferred
to a spouse
or other exempt
transfer,
represented
by the accumulated
interests
shall be reappraised.
-4-
during
property
only
any
or $10,000,
that
percentage
assessment
exclusive
of
the
year
of any
property
Rule
462.
(D)
CHANGE
IN OWNERSHIP.
The
creates
transfer
(Continued
1)
or terminates
a co-owner’s
interest
between
(E) The transfer
between
spouses
or former
spouses
terminates
a community
property
interest
in connection
with a death or a property
decree
of dissolution
of a marriage
or of a legal separation.
(c)
JOINT
spouses.
a tenancy
settlement
in common
agreement
TENANCIES.
transfer,
(1) Except
as is otherwise
provided
in subdivision
(2), th e creation,
of a joint tenancy
interest
is a change in ownership
of the interest
transferred.
(A)
(ii)
The
in ownership
a change
(2)
subsequent
transfer
from
of 50% of the property.
(A) The transfer
the transferor(s)
transferor(s)
for
transferor”
A spouse
initial
creates
or transfers
is one of the joint
who
purposes
is
of an original
joint
Example:
change
in ownership
“original
therefore,
(B)
transfer
vests
year
the
feror
termination
of
and
Section
to the remaining
transferor,
remains
reappraisal
transferors.
also
D, as
tenants,
joint
the
of
tenancy
interest
and after
such
to be an original
than original
to be “other
(i)
(ii)
tenants,
transfer
is
any
(1) of the
if
it does
in the
original
Revenue
not
the
interest
then
of
the
transferred
last
and
interest
all
is an original
grants
his
joint tenants,
or
tenancy
transferor(s).
interest
which
in effect
other
the
transferor(s),
For
original
transferor,
interests
in the
the
previously
to September
in accordance
forth
in (A) (above),
C dies
F.
No change
in ownership
surviving
No
and are,
described
was
prior
in ownership
other
tenants.
original
Code
a change
all
in a joint
remaining
and Taxation
constitute
All
among the transferees
transferors”.)
transferor’s
Following
the example
set
joint
tenants,
D, E, and
as a joint tenant.
to an original
to
creation
to C, D, E, and F, as joint
are included
than original
transferor’s
or in part
thereafter,
65(a)
interest
with
or grants
his
because
D, an
there
property
shall
held
an original
be a
by
all
trans-
or
remaining
joint
Following
the
tenants,
provided
that
one
of
the
remaining
joint
transferor.
Example:
transferor,
remaining
is a
ownor,
transferor.
transferors”.
(6) The transfer
terminates
a joint tenancy
interest
held by other than
in a joint tenancy
described
in (A) and the interest
is transferred
either:
tenants
tenants,
to C, as sole
be considered
an original
in whole
be reversed
Example:
interest
original
any joint
tenants.
are considered
terminates
interest
under
1980, shall
subdivision.
shall
tenants
C and D, as joint
assessment
reappraised
Upon
to C and
C and D, as joint
because
C and D, the transferors,
transferors”.
(E and F are “other
The
and the
1980-81
26,
this
tenants,
also a transferee(s)
in this situation
is considered
to be an “original
of determining
the property
to be reappraised
upon subsequent
transfers.
transferor
and subsequent
in (A)
joint
Exclusions:
transfer,
Such
or termination
Examples:
(i) The transfer
from A and B, as
in ownership
of the entire
property.
change
or
or
example
set
forth
in
(B)
interest
to D and F.
No change
in ownership
D and F, and D is an original
transferor.
(D) For other than joint tenancies
described
in
co-owners
and results
in a change
in the method of holding
the proportional
interests
of the co-owners,
such as:
-5-
(A),
title
(above),
because
E, not
an original
E grants
to the
the transfer
is between
or among
but does not result
in a change
in
Rule 462. CHANGE IN OWNERSHIP.
(i)
in equal
a transfer
terminating
the
joint
tenancy
to
separate
ownerships
of the
property
interests.
(ii)
equal
(Continued 2)
a transfer
terminating
the
joint
tenancy
and
creating
a tenancy
in common
of
interests.
(iii)
transferors
sidered
a transfer
and
remain
“original
co-owners”
subsequent
transfer(s)
to be the
occurs
upon
the
(E) The transfer
(i)
March
1, 1980,
terminating
transferees
held
by
a joint
the
tenancy
same after
for purposes
to a legal
of the ownership
was
between
such
co-owners
co-owners
for
or part
interests
shall
a change
of the
be con-
in ownership
in the property.)
of property
of the
when the
transferees
whether
interests
or among
all
entity
(Such
the transfer.
of determining
which
period
was:
between
March
1, 1975,
and
and
(ii)
the
property
was
eligible
exemption
for the homeowners’
during
the entire
period
of co-ownership.
(F) The transfer
(G)
The
creates
transfer
terminates
spouses
or former spouses
of dissolution
of a marriage
(H) The transfer
the total
property
interests
during
value
equals
interest
is of a joint
shall
or exceeds
transferred
by the
the
five
percent
to a spouse
accumulated
tenancy
tenancy
interest
between
or a community
property
or a property
interest(s)
than
year(the
for the
accumulated
from
March
purpose
interests
shall
than five
however,
1 through
of determining
transferred
of the value
of the total
or other
exempt
transfer,
interests
settlement
of less
p rovided,
$10,000;
period
be accumulated
When
tenant’s
with a death
separation.
of less
any one assessment
year)
transferred.
represented
a value
a joint
a joint
in connection
or of a legal
and has
of the following
and
or terminates
spouses.
interest
between
agreement
or decree
percent
of the value of
that transfers
of such
the
last
the
during
day
in February
percentage
any
property
or $10,000,
only that percentage
interest
assessment
exclusive
of the
year
of any
property
be reappraised.
(d) LIFE ESTATES AND ESTATES FOR YEARS.
the
(1) Life estates.
time of transfer
The
unless
creation
of a Irfe estate
the instrument
creating
However,
the
spouse.
transfer
or the transferor’s
the transferor
or the transferor’s
tion of such a reserved
life
man (other than the transferor
(2)
Estate
for
subsequent
third
term,
transfer
to a third
estate,
the vesting
or the transferor’s
years.
real property
is a change
estate
for years
reserves
spouse
The
creation
in ownership
such estate
of such
an estate
spouse)
35 years
party
is a change
in ownership.
a right to possession
spouse)
is a change
or enjoyment
in ownership.
of an estate
for
years
at the time of transfer
in the transferor
or the
for
years
party is a change
in ownership.
Upon
the vesting
of the right to possession
feror or the transferor’s
for years for less than
in real property
is a change
in ownership
at
the life estate
reserves
such estate
in the
subsequent
transfer
of such a life estate
by
by the
for
a term
unless
the
transferor’s
transferor
or the
the termination
of a reserved
or enjoyment
of a remainderman
is a change
in ownership.
is not a change
in ownership.
The
creation
Upon
termina-
of a remainder-
of 35 years
instrument
spouse.
transferor’s
or more
creating
However,
spouse
In
the
the
to a
estate
for years for any
(other than the transor transfer
of an estate
(e) POSSESSORY INTERESTS.
The creation,
renewal,
sublease,
or assignment
of a taxable
possessory
interest
in tax exempt
real property
for any term is a change in ownership
except
when
the interest,
whether
an estate
for years
or an estate
for life,
is created
by a reservation
in an
instrument
deeding
the property
to a tax exempt
governmental
entity.
(f)
LEASES.
real
(1) The
property
followrng
constitute
transfers
of either
the
a change
in ownership
lessee’s
of such
- 6-
interest
or the
real property:
lessor’s
interest
in taxable
Rule
462.
CHANGE
(A)
Lessee’s
(i)
the
of 35 years
(Continued
3)
Interest:
the creation
(ii)
term
IN OWNERSHIP.
of a leasehold
interest
sublease,
or assignment
transfer,
in real
property
for a term
of a leasehold
of 35 years
interest
or more.
with
a remaining
term
of 35 years
or more.
(iii)
the
termination
of a leasehold
interest
which
had an original
or more.
(B)
Lessor’s
(i)
with
a remaining
(ii)
leases,
one
which
is for
(2)
The
property
The
transfer
term
of less
The
of a lessor’s
than
transfer
or more
of the
is
term
following
transfers
Lessee’s
(i)
in taxable
real
property
subject
to a lease
interest
in taxable
real
property
subject
to multiple
a remaining
subiect
term of less than 35 years and one or more of
case there is a change
in ownership
or more, in which
to the
of either
do not constitute
(A)
for
of 35 years
property
interest
35 years.
of a lessor’s
of which
a remaining
of the portion
real
Interest:
a change
lease(s)
the
with
lessee’s
a remaining
interest
in ownership
of such
term
or the
real
of less
lessor’s
than
35 years.
interest
in taxable
property.
interest:
The
creation
of
a leasehold
interest
in
real
property
for
a term
of
less
than
35 years.
term
of less
(ii)
The
than
35 years
(iii)
The
transfer,
sublease,
or assignment
(regardless
termination
of the original
of a leasehold
of a leasehold
interest
with
a remaining
of the
lease).
which
had an original
term
of less
term
interest
than
35 years.
(B)
Lessor’s
(i)
remaining
(3)
term
Once
interest:
The
transfer
of 35 years
a change
of
a lessor’s
or more,
interest
whether
in ownership
to the
of taxable
to have occurred,
the entire
property
subject
the lessee’s
interest
and the reversion).
(4)
written
Part
of
the
term
of
real
a lease
lease
for
all
property
or another
property
to the
(5) It shall
be conclusively
presumed
that
13 of Division
1 of the Revenue
and Taxation
which
years,
(g)
The calculation
renewal
options.
in real
lessee
all
subject
subject
a lease
to a lease
is reappraised
purposes
to
(i.e.,
a
of this
has
been
deemed
the
value
of both
shall
include
section
homes
(other
than mobilehomes
Code) eligible
for the homeowners’
are on leased
land have written
renewal
options
whether
or not such renewal
options
in fact exist
with
party.
on the lease
in any contract
of such land
or agreement.
subject
to
exemption
of at least
35
FORECLOSURE.
(1)
Mortgage
or deed
of trust
(A)
After
the period
(B)
Upon
redemption
foreclosed
by judicial
action
is a sufficient
change
in ownership
only:
right
of redemption
when
title
has passed
vests
(2) Deed of trust foreclosed
by trustee’s
of possession
vests
in the purchaser.
(3) A transfer
ownership.
by a trustor
in
lieu
and property
in the original
sale
of a trustee’s
-7-
shall
debtor’s
cause
foreclosure
has not been
redeemed,
successor
in interest.
a reappraisal
sale
as
constitutes
of the
or
date
the
a change
in
Rule 462.
CHANGE IN OWNERSHIP.
(h) TRANSFERS RESULTING
and redemption
the state
However,
a sale
ownership
(i)
by
requiring
the
(Continued
4)
Transfers
FROM TAX DELINQUENCY.
by the former assessee
state
whether
to the
reappraisal
as of the date
by the
sale
to or deed
shall not be considered
as changes
original
owner
or to a new owner
to
In ownership.
is a change
in
of the sale.
TRUSTS.
(1)
Creation.
Except
or any other person,
time of the transfer.
(2)
transfer
as is otherwise
of real
property
A transfer
Exceptions.
to a trust
beneficiary
of the trust;
the
that
legal
entity
by the
ficial
other
trustor
Trustor
occur
person(s)
other
provided,
however,
a change
other than the trustor-transferor’s
(E) Proportional
the
(3)
ship
The
than
(A) Prior
terms
income
from
of the
the
The
in the
receive
trust.
are
real
upon
of or
present
exemption
by the trustor(
resulting
retains
property)
causing
does
is to a trust
remaining
one
the
trust
the termination
when
to the
which
same
of a trust
and
in duration.
that
in the
after
and meets
the
trust
was
the
persons
proportional
the
transfer.
requirements
(4), the termination
of the termination
is not a change
created
or when
according
use of or
it became
from the trustor-transferor’s
by the trustee
back to the
did not exceed
12 years
exercise
of the
trustor-transfe;or.
in duration
Interests.
Termination
results
in the transfer
to the beneficiaries
interests
in the property
as they held before the termination
-8-
of a
of the
in owner-
(E) Proportional
proportional
bene-
is applicable;
extent
results
before
to another
12 years
Trusts.
exemption
the
in ownership
also occurs
when the remainder
or
holder
of that interest
is a person
or entity
other
Trusts.
The trust term
to the trustor-transferor.
The
a
unless
and the
transfers
provided
in subdivision
in ownership
at the time
change
if the
in a
however,
reversion,
not exceed
does occur
of the trust.
a reappraisal
to
trust.
interest(s)
irrevocable
the
of trust property
are beneficiaries
from
occur
of the
beneficiary.
interspousal
is from
does
provided,
becomes
afforded
transfer
property
beneficiaries
or an ownership
trust
sole present
the
Reappraisal.
Termination
results
in the distribution
of trust property
trust
to a person
or entity
who received
a present
interest
(either
Trustor
Reversion
the property
reverts
same
at the
creation
(D) lnterspousal
the
trustor,
property
the
is
of trust
present
property
revocable
(B) Revocable
Trusts.
Termination
results
of revocation
and the property
is transferred
(C)
in ownership
trustor-transferor
property
irrevocable;
provided,
however,
another
reversionary
interest
becomes
possessory
than the present
beneficiary.
termination,
in ownership
the trustor-transferor
The
Interests.
A transfer
Exceptions.
to the
power
the
Termination.
Except
as is otherwise
or portion
thereof,
constitutes
a change
(4)
if:
by the
of such
trustor-transferor
is revocable
time
the sole
(F) Other Trusts.
The transfer
of (A), (IS, (Cl, 031, or (EL
trust,
trust.
of
which
in ownership
spouse
beneficiaries
a change
transfer
Trusts.
Trusts.
The
trustor-transferor
at the
or becomes
(D) lnterspousal
of
the
The
Reversion
interest(s
interests
(2) the transfer
in ownership
a change
Trusts.
however,
than
to a trust
does
remains
(C)
is a change
is not
Beneficiary
Trusts.
in ownership
trustor-transferor
a trust
to a trust
provided,
persons
(B) Revocable
change
into
in subdivision
if:
(A) Trustor-Transferor
extent
provided
afforded
interspousal
transfers
and,
on
is applicable.
who
of the
Rule 462. CHANGE IN OWNERSHIP. (Continued
(F) Other
the
requirements
(i)
LEGAL
(1)
Trusts.
of (A),
Termination
(B),
(D),
results
Transfers
of property
to and by
legal
one trust
to another
and meets
Except
property
property
as is otherwise
to a corporation,
transferred.
provided
in sub-
partnership,
or other
Exclusions:
(i)
the voting
stock
transferee
corporation
are each
ship to a common parent,
and
(ii)
the
common
one corporation
between
if:
or among
of the corporation
owned
parent
A transfer
of real property
change
in ownership.
by P, A,
Example:
P) would
not
owns
of related
and the voting
related
stock
by voting
100 percent
directly
of the
those
of the
stock
voting
owner-
stock
of
EXAMPLE
by C (wholly
in ownership
the transfer
including
corporations.
B, or C to any
A transfer
be a change
corporations,
by a corporation
corporation
in the chain(s)
affiliated
making
100 percent
SIMPLE
and
from
(2).
entities.
of any interest
in real
in ownership
of such real
(A) Transfers
of real property
made to achieve
a corporate
reorganization
at least
in the transfer
or (E) of subdivision
ENTITIES.
division
(2), the transfer
legal entity
is a change
(2)
(C),
5)
of the
other
owned
because
three
by A and
of those
corporations
would
B) to B (wholly
relationships
and
not be a
owned
because
by A
P owns
100% of A.
If real property
is transferred
the property
of the acquired
(B) Transfers
legal
which
holders
entity
(or vice
the proportional
of
the
between
corporation
of real
versa),
property
which
between
result
ownership
ownership
non-affiliated
corporations,
shall be deemed to have
interests
interests
in
separate
solely
in the property
the
legal
in a change
transferee
only the property
undergone
a change
entities
or by an individual(s)
in the method
remain
legal
of holding
the same after
entity,
transferred
or
in ownership.
whether
title
to a
and in
the transfer.
such
interests
(The
are
represented
by stock,
partnership
shares,
or other types
of ownership
interests,
shall
be defined
co-owners”
for purposes
of determining
whether
a change
in ownership
has occurred
as “original
upon the subsequent
transfer(s)
of the ownership
interests
in the legal entity.)
Examples:
(i)
where
receives
A and
A transfer
B each
take
of real
back
(ii)
Same as (i)
2 percent
of the stock.
property
50 percent
from
of the
A and
stock.
above, except
Change
A and
in ownership
-9-
B, as equal
No change
B take back
of the entire
co-tenants,
to Corporation
X
in ownership.
49 percent
property.
of the
stock
andC
Rule 462. CHANGE IN OWNERSHIP.
(Continued 6)
(iii)
A transfers
Whiteacre
to Corporation
X and
value to Whiteacre)
to Corporation
X. A and B each take back
in ownership
of 100 percent
of both Whiteacre
and Blackacre.
(iv)
change
A transfer
of real
property
from
B transfers
50 percent
Corporation
X to
Blackacre
(equal
in
of the stock.
Change
its
sole
shareholder
as
is otherwise
NO
A.
in ownership.
(3)
Transfers
subdivision
of ownership
(4),
interests
the
in other
interests
purchase
legal
in IegaI
or transfer
entities
is
of
not
Except
entities.
corporate
a change
stock,
in
partnership
ownership
of the
provided
shares,
real
or
property
in
ownership
of the
legal
entity.
(4)
Exceptions:
(A) When any corporation,
(i)
voting
stock
obtains
in any
as described
in (2) (A),
(ii)
Upon
the
directly
direct
capital
(iii)
indirect
which
entity
or any person:
or control
of
not a member
of the
same
ownership
of more
than
or indirect
more
than
affiliated
50 percent
group
of the
of corporations
direct
of
or Indirect
such
50 percent
of the
total
interest
or
in any other
acquisition
legal
ownership
IS
and profits,
obtains
interest
or indirectly
other
or
obtains
ownership
or
corporation
in both partnership
total
direct
partnership,
legal
direct
by the acquired
ownership
or control
of more
than
50 percent
of the
entity.
or indirect
ownership
or control,
legal
is deemed
to have
entity
all
of the
undergone
property
owned
a change
in owner-
ship.
(B) When real
excluded
from
property
a change
transferred
In ownership
in one or more
to a corporation,
pursuant
(2)
and
the
whether
in the entity
as defined
In (4) (A).
For p ur p oses of determining
of the total
control
or ownership
interests
in the entity
has been transferred,
Such
a change
in ownership
real property
as the
“original
co-owners”.
For purposes
ately following
(C)
“original
transfer.
co-owners”
requires
percentage
When the stock
(i)
transferred
reappraisal
of the
ownership
interests
the
cooperative
was
conveys
financed
beginning
same
Act
and
of
1959,
or was
insuring
(ii)
the
regulatory
or lending
agency,
and
purchase
(iii)
the transfer
by reason of limited
with
percentage
in the
legal
housing
the
under
corporation,as
exclusive
one
rrght
mortgage
a direct
and
occupancy
agreements
were
the housing
cooperative
to a person
- lo-
from
the
50
the
time
legal
of
of the
entity’s
transferred
by the
entity
immedi-
in Section
of all
insured
or part
under
Sec-
as amended,
or was financed
of 1949 or Section
202 of the
by
Partnership.
loan
than
transfers
defined
was
is
subse-
or ownership
to occupancy
which
Act,
Act
entity
more
of the
entity
financed
is from
income.
control
ownership
interests
in the legal
the new “original
co-owners”.
in a cooperatrve
Code,
of the total
cumulated
221(d) (3), 221(d) (4), or 236 of the Notional
Housing
pursuant
to Sections
514, 515, or 516 of the Housing
Housing
Agency,
(5)
be
of this subdivisron,
persons
holding
the reappraisal
shall be considered
17265 of the Revenue
and Taxation
of the corporate
property,
unless:
tions 213,
or assisted
the
of the
shall
legal
co-owners”
transfer
by the
interest
50 percent
or other
“original
interests
percent
interests
ownership
more than
partnership
(B)
quently
such
first
transactions,
to
California
approved
Housing
by
or family
the
Finance
respective
qualifying
for
Rule
462.
CHANGE
(A)
acquired,
IN OWNERSHIP.
Except
7)
in (2) (B), when real
by the partnership
as provided
by purchase
(Continued
or otherwise,
property
is contributed
there
is a change
to a partnership
in ownership
or is
of such
real
property,
regardless
of whether
the title
to the property
in the name of the partner(s),
with or without
reference
is held in the name of the partnership
to the partnership.
Except
as provided
(2) (B), the transfer
of any interest
person
or entity
constitutes
a change
by
(B)
a continuing
(k)
Security
There
transactions.
conveyance
of the
presumption
property
(A)
The
existence
(B)
The
principal
as the amount
(C)
the
or any
other
in
that
may
interest
therein,
be
interpreted
depending
Section
1105 that
this presumption,
to
on the
a conveyance
consideration
be
facts.
either
a
There
is
is what it is purported
may be given
to, but
factors:
amount
or promise
to be paid
for the original
inequality
to pay.
for
reconveyance
is the
same,
or substantially
the
deed.
between
the
value
of the
property
and the
price
alleged
to have
paid.
debt;
(D) The
and
(E)
debt.
The
Proof
may
grantor
A written
best
remaining
also
(A)
The
ance in which
interests.
(B)
shall
factors
this
existence
all
agree
that
(3)
agreements.
hereafter
will
convey
receiving
title
called
property
can
have
principal.
The transfer
change
in ownership.
the property
shall
penalty
of perjury
such
one person’s
on the deed
transfer
document
of the
accompanied
prior
parties
or order.
agreements,
to,
by such written
checks,
insurance
A holding
a principal,
to the
other
entity
no discretionary
of property
Th ere shall
agreement
agreement
and another
be no change
conveys
the property
to a holding
when
(A) There
shall
be a change
there is a change of principals.
for
but
to the holder
suant
is
an
entity,
merely
duties
evidence
policies,
be a change
but
in owner-
not
limited
to or at the
time
of the
do not
equitable
have
the
must
of title
as may reasonably
and tax returns.
agreement
usually
purposes
act
only
pursuant
between
a title
to,
convey-
of holding
in ownership
- 11 -
for
property
owner
that
title.
instructions
to a holding
agreement
subject
entity
of such
penalty
be available,
an
company,
the
ownership
on explicit
in ownership
when the
back to the principal.
by
cancelled
on a deed, there
is a
interests
in property.
will
given
of
of the
(or affidavits)
as written
be
payment
finding
the parties
may
executed
or more
upon
be a judicial
name appears
have ownership
between
consideration
on payment
The best evidence
of the existence
contribution
of each party.
finding
or order.
Proof may also be made by declarations
under
The monetary
be a judicial
Holding
factors
available,
one
of perjury
(or affidavits)
accompanied
such as written
agreements,
cancelled
property,
to reconveyance
be
any
of a written
parties
right
under
When more than
all persons
listed
presumption,
the
to reconvey
of such
may reasonably
and tax returns.
is not rebutted,
In overcoming
factors:
with
the parties
existence
by declarations
(2) Deed presumption.
rebuttable
presumption
that
ship.
following
between
of the
be made
When the presumption
in possession
agreement
evidence
such written
evidence
as
checks,
insurance
policies,
pal
transactions
security
Civil
Code
In overcoming
of a debt
paid
A great
are
or a mere
under
to be, a transfer
of property.
not limited
to, the following
been
to a partner
ARRANGEMENTS.
a rebuttable
same,
a partnership
or deletion
of partners
(ii) and (4) (B), th e addition
a change
in ownership
of partnership
property.
Except
as provided
in (4) (A)
partnership
does not constitute
MISCELLANEOUS
(1)
in real property
in ownership.
or
by
holding
to a holding
of
the
the princiThe
entity
of the
is not a
title
pur-
agreement
Rule 462. CHANGE IN OWNERSHIP. (Continued
(B)
the
is
shall
be a change
conveyed
by
of such
be a non-reappraisable
owner,
such
Service,
and/or
to the effect
federal
income
(1)
the
in ownership
holder
code,
not
to:
(1)
(2)
a trustee
which
Transfers
including
separation,
(4)
is considered
Notwithstanding
for
take
to a spouse
shall
the
other
agreement
the principal.
than
if
written
showing
Board and/or
the
any
use
a trust
spouse
amendment
provision
spouse
property
Revenue
transaction
for
of Sections
interspousal
of a spouse,
to the
upon the death
or former
other
any
by the
Internal
460
transfer,
or the
state
through
including,
surviving
but
spouse
of a
of the trustor,
of a spouse,
in connection
thereto,
with
or decree
a property
of dissolution
settlement
agree-
of a marriage
or legal
or
The
creation,
transfer,
or termination,
solely
between
spouses,
(m) THE FOLLOWING TRANSFERS DO NOT CONSTITUTE
(1)
a holding
to
to be a financing
not include
beneficial
of such
effect
post-dissolution
a proper
by the FranchiseTax
in ownership
or by a trustee
Transfers
(3)
ment,
to
transferor,
subject
or entity
a person
upon
transaction
or ruling
TRANSFERS.
a change
Transfers
deceased
opinion
to
of
that the transaction
tax purposes.
lNTERSPOUSAL
471 of this
limited
financing
as a written
of property
of title
which
is not
real property,
coupled
with a leaseback
constitutes
a change
in ownership
of the sale instrument,
sale and leaseback
transaction
shall be rebuttably
presumed
A sale
Sale and leaseback.
to the transferor
by the terms
a
property;
provided
however,
(4)
reserved
to
There
property
8)
The
transfer
of bare
(A)
Any
transfer
(B)
Any
transfer
legal
title,
of any
co-owner’s
interest.
A CHANGE OF OWNERSHIP:
e.g.,
to an existing
assessee
for
the
purpose
of perfecting
title
to the
prop-
erty.
interest
not coupled
with
(2)
Any
transfer
(3)
Any
purchase,
group trust,
pooled
financial
institution.
(4)
Any
transfer,
The
Income
Security
Act
1002.
(The term
and this section
benefit
plan
(5)
such
Any
shall
of 1974,
transfer
to a legal
the
stock,
partnership
shall
be considered
whether
interests
the
which
which
interests
interest,
or otherwise,
to be the
a change
in ownership
in the property.)
“original
has
a security
and
results
solely
remain
plan
the
co-owners”
upon
- 12-
them
States
participation
or the
in the
Code
of a
establlshed
creation,
interest
by a
vesting,
in such
Employee
annotated,
without
a plan.
Retirement
Title
29, Section
a legal
any consideration.)
entity
or between
to a corporation,
of the transferors
of
fund
66 (b) of the Revenue
and Taxation
Code
of real property
made to an employee
or both,
a partnership
occurred
to
as United
an individual
proportional
or units
benefit
ascribed
of employees,
between
of
or profits.
investment
or beneficiary’s
as used In Section
origrnal
contributions
to a partnershrp,
entity,
meaning
shares
collective
to an employee
is codified
a group
of title
of the
or other
of a participant’s
have
or reconveyance
possession
of a trustee.
transfer
fund,
property
“any
contribution”
means only those
as from a co-tenancy
in which
trust
of real
by an employer,
or an individual
and
or other
common
assignment,
occupancy,
use,
by the substitution
or termination
herein
creation,
to immedrate
redemption
fund,
contribution
used
in the
the right
caused
distribution,
terms
resulting
in a change
a trust
in the method
and transferees,
same
after
the
of the property
the subsequent
whether
transfer.
legal
entities,
to a co-tenancy,
of holding
title
represented
(Such transferees
for purposes
of determining
transfer(s)
of the ownership
by
Rule
462.
IN OWNERSHIP.
CHANGE
(Continued
9)
(II) DATE
OF CHANGE
IN OWNERSHIP.
For purposes
date of change
in ownership
of real property,
the following
(1)
(A)
Where
shall
may be rebutted
the transfer
or the date
(B)
the transfer
be rebuttably
may be rebutted
The
the lessee
(3)
Inheritance
(4)
Trusts.
(by will
(A) Revocable.
(B) Irrevocable.
date
The
to subsection
Adopted
June
29,
Amended
September
Repealed
Old
Amended
November
(I)
(1)
Amended
(i) for trust
1978,
effective
July
26, 1978,
Rule
and
Adopted
13,
(61,
and
May
5,
1979,
(1) (2),
1981,
Reference.
Article
When
XIII
real
assessor
A,
property,
shall
(b)
August
Sectjons
“Newly
constructed”
(1)
substantial
Any
fill,
retaining
pool
or
land
walls,
2,
changing
an
or to incorporate
all
of the trans-
This
parties’
presumption
instructions
have
enforceable.
of death
of the decedent.
in trust.
and
adopted
August
(a),
(b)
(b)
22,
(S),
(b), and
1979.
(e)
(h)
(3).
(2)
(f)
(2),
(h)
(2)
CC),
CD).
1981.
California
of
Constitution.
is
such
newly
“newly
constructed
constructed
after
the
property”
1975
as
lien date, the
of the date of
value
for only that portion
of the property
The taxable
value
on the
or alteration.
value
of new construction
to the taxable
reduced
to account
for the taxable
value
of property
removed
during
of new construction
is only that value
resulting
from the new convalue
increases
not associated
with the new construction.
addition
existing
the date
change.
specifically
date
lb, 1979, effective
6, 1979.
Amended
(6) to (b) (7);
thereof,
value
or “new
curbs,
document,
irrevocable.
completion.
This will
establish
a new base year full
which
is newly
constructed,
whether
it is an addition
total
property
shall
be determined
by adding
the full
value of preexisting
property
construction.
The full value
struction
and does not include
have
2, 1978.
August
12,
1 and
full
instructions
enforceable.
PROPERTY
or a portion
the
date
exemptions.
December
renumbered
the
presumption
1978.
Rule
effective
The
is placed
October
New
effective
ascertain
3,
effective
Rule 463. NEWLY CONSTRUCTED
footage
of the
to possession.
becomes
transfer
This
parties’
of ownership
became
succession).
property
all
to be the date
document,
change.
specifically
by an unrecorded
has the right
the trust
date
became
of the parties
or intestate
The
to be the date
date
or other
of ownership
to be the date
a different
the agreement
date
date
of the parties
presumed
or the date
(2) L eases.
Refer
a different
proving
of a deed
to be the date
is accomplished
by evidence
met in escrow
Hlstory:
proving
shall
by recordation
presumed
the agreement
Where
fer document
NOTE:
is evidenced
be rebuttably
by evidence
met in escrow
(b)
as
Sales.
of recordation
(a)
of reappraising
real property
dates shall be used:
construction”
to land
gutters
and
or improvements,
or sewers
improvement
an additional
means
fixture,
to land
so as
including
or constructing
to add
as that
includes:
term
horizontally
is defined
(2) Any substantial
physical
alteration
of land which
constitutes
or results
in a change
in the way the property
is used.
- 13 -
fixtures,
a new
such
building
or vertically
in this
a major
as adding
land
or swimming
to
its
square
section.
rehablitation
of the
Rule
463.
NEWLY
Examples
CONSTRUCTED
of alterations
Site
In any instance
of the alteration
Increases
lot for
for
land
new
the
construction
purpose
to level
in land
irrigated
use as a parking
are:
of establishing
crop
value
caused
by appreciation
or a zoning
value
1975
=
$10,000
2.
Land
value
1978
=
$20,000
3.
Value
of alteration
=
$ 5,000
4.
Value
added
of structure
1978
=
$75,000
=
$90,000
to
roll
value
land
in the way
land.
change
rather
1978
(lt3t4)
which
do
not
the property
constitute
is used
which
the portion
of the structure
that
old structure
to make it the substantial
IS
used
a major
shall
rehabilitation
not result
(4)
or alterations
Excluded
tion
from
of aluminum
(5)
converts
Substantial
expressed
(c)
For
directly
(d)
New
Any
to a warehouse
alterations
siding
that
physical
substantial
equivalency
in units
purposes
construction
per hour,
of this
by
of the rehabilitated
“fixture”
section,
in progress
on the
date thereafter
until
is newly
constructed
or function
lien
date
shall
retail
not
result
in a
is construction
of any
substitution
be appraised
which
of a new fixture.
normally
capacity.
whose
industry,
fixture
capacity,
productive
as an improvement
of a trade,
or recon-
parts.
productive
to its original
a restaurant.
e.g., routine
annual
preparaof roof coverings
or the addi-
or modernization
the
to an
in the
to the appropriately
machine
or any
alterations
any change
storeor
be added
of worn
fixture
is defined
the process
physical
wrthout
constructed”
comparing
fixture
asa
and repair,
replacement
renovation
of a new
do
appropriate
the improvement
or any portion
thereof
or changes
the way in
shall
or the replacement
ascertained
to reflect
or which
it usable
as “newly
maintenance
painting,
rehabilitation,
be
to or augments
construction
and each lien
property
which
qualify
equivalent
shall
makes
of the alteration
structure.
of normal
or exterior
to improvements
substantial
applies
that
for the purpose
land or interior
it to the
new
in reappraisal.
had been altered
is used, e*g.,
equivalent
of a new building
Only, the value,
not necessarily
the cost,
indexed
base year value of the pre-existing
struction
performed
tion of agricultural
only the value
or improvements.
than
(must be adjusted
indexing)
(3) Any physical
alteration
of any improvement
which
converts
thereof
to the substantial
equivalent
of a new structure
or portion
it
subdivision.
for example:
Land
1979
way
a residential
facility.
1.
Alterations
1)
in which
an alteration
is substantial
enough to require
reappraisal,
shall
be added to the base year value of the pre-existing
land
not be enrolled,
change
land
dry grazing
vacant
(Continued
to be considered
of rural
rolling,
Preparinga
shall
to land
development
Altering
PROPERTY
use
or purpose
or profession.
at Its full
the date of completron,
at which
time
shall be reappraised
at its full value.
value
the
entire
on such
portion
date
of
(e) For purposes
of this section,
the date of completion
is the date the property
or portion
thereof
is available
for use.
In determining
whether
the real property
or a portion
thereof
is available
for
use, consideration
shall
be given
to the date of the final
Inspection
by the appropriate
governmental official,
or, in the absence
of such inspection,
the date the prime contractor
fulfilled
all
of his contract
obligatrons,
machinery
and equipment.
or
in the
case
of
fixtures,
- 14-
the
date
of the
completion
of testing
of
Rule
(f)
463.
NEWLY
Newly
constructed
a disaster
where
to its full
value
shall
on lien
(1)
the
include
real
2)
property
which
is timely
as reconstructed,
are not substantially
reconstructed
is substantially
equivalent,
after
equivalent
the assessor
restoration:
property
at
its
former
taxable
value
plus
or minus
the
appropriate
or
current
market
value
found in Item 1 above,
of this
or fixture
and
(Continued
real property,
If the values
to the disaster.
Enroll
the value
if it is determined
disaster
prior
not
of such
restored
(2) Enroll
the
than the value
For purposes
improvement
does
value
following
adjustment,
(3)
property
(g)
prior
date
PROPERTY
property
the full
Enroll
inflation
less
CONSTRUCTED
which
found
that
of the
or
in Item 1 above
new construction
substantially
property
if the
plus the market
has occurred.
newly
subsection
only,
that is restored,
is
restored
constructed
value
property
current
of any
does
market
newly
not
value
is
constructed
include
any
land,
reconstructed
or repaired
in a timely
manner
following
a
use and quality
to’that
which
existed
in size,
equivalent
to the disaster.
For
ship
property
prior
provements
shall
reconstruction
date
under
or restoration
of reconstruction
be determined
or restoration
of completion
regard
reconstruction
to the completion
as
of the
which
in accordance
to the “substantially
date
occurs
with
as a result
following
the
equivalent”
of the
change
the
provisions
test
of disaster
the value
or restoration,
which
of the
in ownership
transfer
shall
to new
applicable
to property
owner-
and existing
but
the
value
be determined
applicable
normally
changes
land
as
construction
imof any
of the
but without
reconstructed
follow-
ing a disaster.
History:
Adopted
Rule
June
September
Amended
January
Repealed
Old
464.
effective
26,
25,
Rule
SectIons
XIII
1978,
1979,
and
110,
A does
on or before
July
exemptions
as
1978,
3, 1978.
October
effective
Adopted
March
New
110.1,
not repeal
1, 1978.
Rule
2,
1978.
1, 1979.
August
Appl’
16,
table
to
assessments
1979.
effective
August
and
Taxation
Code
for
22,
1979
and
yeors
thereafter.
1979.
applicable
110.5,
any
The
110.6,
Revenue
property
property
to a specific
tax
tax
property.
exemptions
rate
shall
Examples
granted
apply
or authorized
to the
current
of the application
by the Constitution
taxable
of partial
value
less
exemptions
any
are
follows:
(a) Homeowners‘
exemption.
qualifying
for the homeowners’
(b)
Veterans’
percent
taxable
contains
exemption.
H Istory:
of the
of the current
full cash value as defined
in Revenue
assets
will determine
the limitation
for the veterans’
no provision
Disabled
qualifying
tax rate applies
to the current
Th e property
exemption
less the value of the exemption.
Th e sum of 25 percent
for reconsidering
rate applies
to the current
value of the exemption.
(c)
July
effective
EXEMPTIONS.
Reference:
Article
29,
Amended
veterans’
exemption.
for the disabled
Adopted
June
29,
taxable
1978,
the granting
value
effective
property
property
July
3,
tax
tax
value
and Taxation
property
tax
of the exemption
of property
The
veterans’
taxable
qualifying
rate
exemption
1978.
- 15-
prior
for the
applies
less
taxable
value
of taxable
of property
assets
and
100
Code Section
110 for nonexemption.
Article
XIII A
to 1978.
veterans’
The
property
tax
exemption
less
value
of property
to current
taxable
the value
of the exemption.
the
:
Rule 465. NONPROFIT
GOLF COURSES.
Reference:
Sections
Article
When
XIII
appraising
with
the
for the
plus
A,
real
property
provisions
1979
the
date
Section
2 of Article
HIstory
Adopted
attributable
XIII
June
29,
Old
2,
California
ascertain
to any
1978,
effective
and
Adop+ed
July
the
value
of such
rights
August
AND ENROLLMENT
Reference:
Article
Sections
1 and
course
property
without
regard
or its
purposes
Constitution,
on the
to any
implementing
2,
(a) Those
planted
in land enforceably
visions
of Section
470 herein
without
the California
Constitution.
(b)
Those
planted
in land
(I)
the
The
year
base
year
(c)
base
they
16,
1979,
effective
August
22,
year
for
Perennials,
other
land
shall
not enforceably
California
than
lien
date
original
base
year
value.
Adopted
Amended
Repealed
June
29,
and
old
Article
full
shall
planted
unless
Rule
1979
XIII
lien
date
they
26,
and
and vines,
in
that
shall
effective
1978,
July
value
be valued
case
of
or vineyard
form shall be
exempt
trees
and vines
be enrolled
at their
land
year
not
enforceably
was
prior
base
index
year
restricted
to
value
not to exceed
1975
in which
two
shall
be
case
the
New
for their
and have
their
commercial
In Section
value
the
production
470.
same
as of the
If they
base
date
are
year
on enforceably
planted
as the
of planting
land
on land
unless
shall
be their
taxable
posses-
3, 1978.
effective
Adopted
planted
as provided
in which
October
Rule
2,
August
1978.
16,
1979,
effectrve
August
22,
1979.
POSSESSORY INTEREST.
A,
S ec t tons
1 and
and thereafter
sory interests
as defined
in Section
date.
Possessory
Interests
newly
their
use,
Constitution.
restricted
vines
annually
1975
1978,
September
Rule 467. TAXABLE
the
trees
restricted,
after
For
provisions
restricted
shall
be annually
valued
pursuant
to the proregard
to the provisions
of Section
2 of Article
XIII A of
to taxation
be valued
planted
Reference.
trees
of such
the
OF TREES AND VINES
enforceably
subject
basis
of
1979.
to reflect
annual
increases
in the consumer
price
value for the current
lien date, whichever
is less.
became
shall
is 1975.
restricted
Htstory:
not
assessor
legislation.
All fruit
and nut trees and vines
when planted
respectively
in orchard
exempt
as provided
by law.
Upon becoming
subject
to tax, previously
shall
be valued
for the 1979 date and thereafter
as follows:
approprrately
adjusted
percent
or at their full
in accordance
the
1978.
Rule
VALUATION
A,
golf
California
Constitution
3,
New
nonprofit
of the
mineral
Rule 466.
Xlll
for
XIII
A of the California
Rule
Constitution.
exclusively
10 of Article
and thereafter
value
Repealed
used
of Section
lien
full
I and
as of the date
2,
California
Constitution.
the assessor
shall
ascertain
the value
of all
21 of this code and created
prior to March 1, 1975, as of that
created
subsequent
to March
1, 1975, shall
be appraised
at
of creation.
- 16-
..
Rule
467.
TAXABLE
Possessory
their
interests
full
obtains
value
that
the right
owned
covers
If the
renewed,
as of the date
extended,
by the holder
full
Adopted
of the possessory
one
value
June
Rule
Reference:
29,
Amended
September
Amended
January
Repealed
468.
OIL
subleased
or assigned
lien
date,
of any
Old
they
Rule
XIII
and
1978,
1979,
July
effective
New
any
term
shall
be appraised
the sub-lessee
at
or assignee
Sections
1 and
in the course
lien
for
date
any
for
possessory
interWhen improve-
of construction
in accordance
changes
to the
granted
by the
of construction.
with
reason
which
Section
to a value
the
roll
for a period
463.
that
is being
is less
prepared
1978.
October
March
Rule
GAS PRODUCING
A,
are
interest
3,
the rights
completion
be appraised
indexed
effective
Adopted
interests
shall
possessory
effective
?6,
25,
AND
Article
1978,
for
or as of the date
or use of the property.
than its base year value appropriately
that lower value shall be enrolled.
History:
(Continued)
erected
for the purpose
of exercising
shall
be valued
as of the date of the
more than
current
INTEREST.
of the renewal,extension,
to occupancy
New improvements
est held in land
ments
POSSESSORY
2,
1978.
1, 1979.
August
Applicable
16,
1979,
to assessments
effectrve
August
for
22,
1979
and
years
thereafter.
1979.
PROPERTIES.
2,
California
Constitution.
(a) The right to remove petroleum
and natural
gas from the earth is a taxable
real property
interest.
Increases
in recoverable
amounts
of such minerals
caused
by changed
physical
or economic
condiReduction
in recoverable
amounts
of mintions
constitute
additions
to such a property
interest.
erals caused
by production
or changes
in the expectation
of future
production
capabilities
constiWhether
or not physical
changes
to the system
employed
in retute a reduction
in the interest.
covering
such minerals
qualify
as new construction
shall
be determined
by reference
to Section
463(a).
(6)
The market
value
of an oil and gas mineral
property
interest
is determined
by estimating
the
of the volumes
of proved
reserves.
Proved
reserves
are those
reserves
which
geological
and engineering
information
indicate
with
reasonable
certainty
to be recoverable
in the future,
taking
into account
reasonobly
projected
physical
and economic
operating
conditions.
Present
and projected
economic
conditions
shall
be determined
by reference
to all economic
factors
considered
by knowledgeable
and informed
persons
engaged
in the operation
and buying
or selling
of such properties,
e.g., capitalization
rates,
product
prices and operation
expenses.
value
(c)
The unique
nature
of oil and gas property
interests
requires
the application
of specialized
appraisal
techniques
designed
to satisfy
the requirements
of Article
XIII,
Section
1, and Article
XIII A, Section
2, of the California
Constitution.
To this end, the valuation
of such properties
and other real property
associated
therewith
shall
be pursuant
to the following
principles
and
procedures:
(1) A base year value
(market
value)
of the property
shall
be estimated
as of lien date 1975
in accordance
with Section
460.1 or as of the date a change
in ownership
occurs
subsequent
to
lien date 1975.
Newly
constructed
improvements
and additions
in reserves
shall
be valued
as of
the lien date of the year for which
the roll is being prepared.
Improvements
removed
from the site
shall be deducted
from taxable
value.
Base year values
shall be determined
using factual
market
data such as prices
and expenses
ordinarily
considered
by knowledgeable
and informed
persons
engaged
in the operation,
buying
and selling
of oil, gas and other mineral-producing
properties
and the production
therefrom.
Once determined,
a base year value may be increased
no more than
two percent
per year.
(2)
Base year
caused
by production
reserve
values
must be adjusted
annually
for the
or changes
in the expectation
of future production.
- 17-
value
of depleted
reserves
.
!
Rule 468. OIL AND GAS PRODUCING PROPERTIES.
(3) Additions
ments, or changes
(4)
The
to reserves
in economic
current
established
conditions
year’s
lien
unit
market
(Continued)
rn a given year
shall be quantified
date
to xa bl e value
of
by discovery,
and appraised
mineral
construction
at market
reserves
shall
of improvevalue.
be calculated
as
follows:
(A) The
be estimated.
shall
total
value
(B) The current
value
of
casings,
and parts
thereof,
unit value by an allocation
wells,
property
(C)
less
serves,
The volume
depletions,
and
the
volume
of reserves
using
current
market
taxable
reserves
is determined
by segregating
the
land (other
than mineral
rights)
and improvements
based on the value of such properties.
of new reserves
from the estimated
shall
be determined
by subtracting
current
total reserves.
the
prior
data
value
from
year’s
of
the
re-
(D) The value of removed reserves
shall
be calculated
by multiplying
the volume
of the
e value,
for reserves only, per unit of
avera
reserves
removed
in the prior year b the weighted
of the reserves
remaining
from
T‘C e prior year’s taxab Be value
minerals
for all prior base years.
shall
be found
by subtracting
the value
of removed
reserves
from the prior year’s
prior
years
taxable
value.
(E) The new reserves
are
per unit of the total reserves.
value
valued
by
multiplying
the
new
volume
by the
current
market
(F) The current
taxable
value for reserves
only is the sum of the value of the prior year’s
factored
by the appropriate
percentage
reserves,
net of depletions
as calculated
in (D) above,
as calculated
change
in the Consumer
Price
Index (CPI) added to the value of the new reserves,
in (E) above.
(5)
Valuation
of land
(other
than
mineral
reserves)
and
improvements.
(A) A base year value (market
value)
of land (including
wells,
casings
and improvements
shall
be estimated
as of lien date 1975 in accordance
with
date of new construction
after 1975, or the date a change
of ownership
occurs
date
and parts thereof)
Section
460.1,
the
subsequent
to lien
1975.
at their
(B) The value of land (wells,
factored
base year value except
(6) Value
improvements
History.
Adopted
casings
and parts thereof)
as provided
in (6) below.
declines
shall be recognized
when the market value
and reserves,
is less than the current
taxable
value
June
29,
Amended
effective
Amended
June
28,
1978,
effective
April
2,
1979,
effective
July
3,
and
improvements
of the appraisal
of the same unit.
shall
unit,
remain
i.e.,
land,
1978.
1979.
July
2, 1979.
Rule 469. MINES AND QUARRIES.
Reference:
Sections
110,
110.1,
110.5,
110.6,
Revenue
and
Toxatlon
Code.
Organic
and inorganic
minerals
and rocks are natural
substances
of the earth,
and are classified
The volume
of minerals
or recks of acceptable
quality
that may be removed
from the land
as land.
under
existing
economic
and operating
conditions
are classified
as reserves.
The creation
of
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 full value
of a mine or quarry
is its base year full value
adjusted
for the depletion
of
reserves.
The value of the depleted
reserves
shall be determined
annually
employing
the economic
data that applied
to the establishment
of the reserves
in the base year.
(b)
HIstory.
The
base
Adopted
Amended
year
June
of new
29,
September
1978,
26,
reserves
effecttve
1978,
shall
July
effective
be the year
3, 1978.
October
2, 1978.
- 18-
in which
either
development
or mining
occurs.
’
*
.
.
Rule
470.
ENFORCEA.BLY
Reference:
Article
with
Commencing
Article
XIII
Article
1.5,
(commencing
When
enforceable
be the base
year
Adopted
value
June
1 and
lien
date,
2,
California
all
Amended
November
are
Revenue
1978,
26,
Rule
Constitution.
property
enforceably
cancelled
or
July
1978,
3,
effective
and
Adopted
13,
1979,
pursuant
to Section
8 of
by
full
nonrenewal
cash
as
value
provided
referred
by
to therein
the
shall
rate.
1978.
Rule
effective
the
by the inflation
October
New
terminated
Code,
annually
effective
restricted
shall
be valued
for property
tax purposes
pursuant
to
with Section
421) and Article
1.9, Historical
Property
3 of Part 2 of the Revenue
and Taxation
Code.
and Taxation
as modified
29,
Old
2,
1978.
August
16,
December
6,
1979,
effectwe
August
22,
1979.
1979.
TIMBERLAND.
Article
Consistent
XIII
with
as timberland
A,
intent
the
legislative
pursuant
1979
lien
June
from
from
29,
Amended
September
Repealed
Old
1 and
of
the
Rule
1978,
26,
and
the
the
Adopted
Collfornia
provisions
51110
Constitution.
of
contained
recent
July
effective
New
Section
thereof,
or 51113
schedule
most
effective
1978,
2,
interpretation
to Section
date
thereafter
Adopted
Sections
the
and
and
Sections
or the
Repealed
Constitution
History:
1979
September
471.
for the
the
Amended
Reference:
Code
A,
restrictions
Code
Rule
XIII
PROPERTY
of the California
Constitution
Open Space Land (commencing
with Section
439) of Chapter
Government
History:
RESTRICTED
3,
3 (i)
the
of the
Article
for
Government
in Section
board-adopted
of
value
434.5
timberland
XIII
land
Code
of the
site
shall
Revenue
class
1978.
October
Rule
August
2,
1978.
16,
1979,
- 19 -
effective
August
22,
of
which
1979.
the
has
California
been
zoned
be ascertained
and Taxation
value
schedule.