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 2 - Assessment › Article 3 - Exemptions and Immunities › Section 131 - Fruit and Nut Tree and Grapevine Exemption

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) "Orchard" or "Vineyard" Defined. An
				  orchard or a vineyard is a systematic planting of fruit and nut-bearing trees
				  or grapevines as opposed to individual plantings for ornamental purposes. The
				  exemption under Section
				  3(i), Article
				  XIII, California Constitution, applies to such fruit and nut-bearing trees or
				  grapevines planted in orchard or vineyard form. The fruit, nuts, or grapes,
				  until harvested, are growing crops exempt from taxation under Section
				  3(h), Article
				  XIII, California Constitution.
(b)
				  Length of Exemption. The exemption applies to those trees in an orchard until
				  four years after the season of planting in orchard form, and those vines in a
				  vineyard until three years after the season of planting in vineyard form. The
				  exemption ceases on the fifth lien date after the season of planting trees in
				  orchard form, and on the fourth lien date after the season of planting vines in
				  vineyard form. For example, fruit trees planted in orchard form in the 1995
				  planting season become assessable on the 2000 lien date.
(c) Nursery Stock. Trees and vines in
				  existence but unplanted in orchard or vineyard form on the lien date are not at
				  that time within the coverage of the constitutional exemption. Fruit trees and
				  nut trees and vines which are personal property are exempt pursuant to section
				  223
				  of the Revenue and Taxation Code, if owned by a grower but held for subsequent
				  planting in orchard or vineyard form provided they are planted during the
				  assessment year by the grower. Section
				  223 has no application to plant
				  nurseries.
(d) Replacement
				  Plantings. The exemption applies not only to complete new orchard and vineyard
				  plantings, but also to those trees or vines in an orchard or vineyard under the
				  age of four or three years respectively which constitute additions to or
				  replacements of plantings in an orchard or vineyard.
(e) Grafting. Where a previously exempt tree
				  or vine has attained commercial production and there is a grafting which causes
				  a re-occurrence of a nonproducing period (except for nurse limbs), this shall
				  be treated as a new planting which creates a new exemption period. Any other
				  grafting or budding or inarching does not create a new exemption
				  period.
(f) Date Palms. Date palms
				  are subject to all of the foregoing regulations applicable to fruit and nut
				  trees. From the lien date that they become taxable to their eighth year of age
				  their value shall be included in the assessed value of the land. Thereafter
				  they are assessable and taxable as improvements. (See section
				  105,
				  Revenue and Taxation Code.)
(g)
				  Enrollment. Fruit and nut-bearing trees and grapevines are not improvements
				  while exempt from taxation. If the assessor places a value for such trees and
				  vines on the roll, the entry shall be made in the personal property column.
				  After the exemption expires their value is to be enrolled in the improvement
				  column. (See section
				  105,
				  Revenue and Taxation Code.)
(h)
				  Structural Improvements. Stakes, trellises, fences, and other structural
				  orchard and vineyard improvements are taxable both during and after the
				  exemption period for trees and vines.
1. New NOTE
					 filed 10-26-77; effective thirtieth day thereafter (Register 77, No. 44). For
					 prior history, see Register 75, No. 52.
2. Amendment of subsection
					 (a) filed 1-11-83; effective thirtieth day thereafter (Register 83, No.
					 3).
3. Editorial correction of subsection (b) (Register 95, No.
					 48).
4. Change without regulatory effect amending subsections
					 (a)-(b) filed 8-23-2004 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2004, No. 35).
Note: Authority cited: Section
						15606,
						Government Code. Reference: Sections
						105,
						211
						and
						223,
						Revenue and Taxation Code.