California Code of Regulations › Title 18 - Public Revenues › Division 1 - State Board of Equalization-Property Tax (California Department of Tax and Fee Administration - Timber Yield Tax, See Chapter 11) › Chapter 4 - Equalization by State Board › Article 4 - Change in Ownership and New Construction › Section 461 - Real Property Value Changes

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Section
				  2 of article XIII A of the
				  California Constitution provides, with certain exceptions stated therein, that
				  real property shall be reappraised if purchased, newly constructed (regulation
				  463) or a change in ownership occurs (regulation 462) after the original base
				  year.
(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 in the cost of living and then
				  compared to the current lien date full value to determine taxable value which
				  shall be the lesser of the two values.
(d) For the fiscal year 1979-80 and fiscal
				  years thereafter the assessor shall prepare an assessment roll containing the
				  base year value appropriately indexed or the current lien date full value,
				  whichever is less. Increases and decreases in full cash value since the
				  previous lien date shall be reflected on the roll except that taxable value
				  shall never exceed base year value appropriately indexed. In preparing such
				  rolls the assessor is not required to make an annual reappraisal of all
				  assessable property.
(e) Declines
				  in value will be determined by comparing the current lien date full value of
				  the appraisal unit to the indexed base year full value of the same unit for the
				  current lien date. Land and improvements constitute an appraisal unit except
				  when measuring declines in value caused by disaster, in which case land shall
				  constitute a separate unit. For purposes of this subdivision, fixtures and
				  other machinery and equipment classified as improvements constitute a separate
				  appraisal unit.
(f) When the
				  current full value of property is less than its base year full value indexed to
				  the current lien date, the full value shall be enrolled as the current taxable
				  value.
1. New
					 section filed 7-3-78 as an emergency; effective upon filing (Register 78, No.
					 27).
2. Amendment filed 10-2-78 as an emergency; effective upon
					 filing. Certificate of Compliance included (Register 78, No. 40).
3.
					 Order which was filed 10-2-78 refiled 10-20-78 as an emergency, to correct date
					 of adoption; effective upon filing. Certificate of Compliance included
					 (Register 78, No. 43).
4. Amendment filed 1-31-79; effective
					 thirtieth day thereafter (Register 79, No. 6).
5. Amendment refiled
					 2-7-79 as an emergency; designated effective 3-1-79. Certificate of Compliance
					 included (Register 79, No. 6).
6. Amendment filed 8-22-79 as an
					 emergency; effective upon filing (Register 79, No. 34). A Certificate of
					 Compliance must be filed within 120 days or emergency language will be repealed
					 on 12-20-79.
7. Certificate of Compliance including amendment filed
					 12-6-79 (Register 79, No. 49).
8. Amendment of subsections (a) and
					 (d) filed 8-23-85; effective thirtieth day thereafter (Register 85, No.
					 34).
9. Amendment filed 5-14-98; operative 6-13-98 (Register 98, No.
					 20).
Note: Authority cited: Section
						15606(c),
						Government Code. Reference: Article XIII A, Sections
						1 and
						2, California
						Constitution.