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 460 - General Application

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  Sections 1 and
				  2 of Article XIII A of the
				  Constitution provide for a limitation on property taxes and a procedure for
				  establishing the current taxable value of locally assessed real property by
				  reference to a base year full cash value which is then modified annually to
				  reflect the inflation rate not to exceed two percent per year or declines in
				  value from whatever cause.
(b) The
				  following definitions govern the construction of the terms in the rules
				  pertaining to Sections
				  1 and
				  2 of Article XIII A.
(1) Base year. The assessment year 1975-76
				  serves as the original base year. Thereafter, any assessment year in which real
				  property, or a portion thereof, is purchased, is newly constructed, or changes
				  ownership shall become the base year used in determining the full value for
				  such real property, or a portion thereof.
(2) 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 Revenue and Taxation Code, as of the lien date 1975 for properties with
				  a 1975-76 base year, or
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 after the 1975 lien date.
				  NOTE: The "full cash value" determined pursuant to Section
				  110 for property, or portions
				  thereof, purchased, newly constructed or which changes ownership shall be
				  enrolled on the next succeeding lien date unless the "full cash value" on that
				  lien date is less, in which case the lien date value shall be
				  enrolled.
(B) If real
				  property has not been appraised to its appropriate base year full cash value,
				  then the assessor shall reappraise such property to its full cash value for the
				  appropriate base year lien date. Such reappraisals may be made at any time,
				  notwithstanding the provisions of Section
				  405.6
				  of the Revenue and Taxation Code, but 1975-76 base year values must be
				  determined prior to July 1, 1980 except in counties over 4,000,000 population
				  the values must be determined prior to July 1, 1981.
(3) Restricted value. Restricted value means
				  a value standard other than full cash value prescribed by the Constitution or
				  by statute authorized by the Constitution.
(4) Full value. Full value (appraised value)
				  means either the full cash value or the restricted value.
(5) Inflation rate. For each lien date after
				  the lien date in which the base year full value is determined, the full value
				  of real property shall be modified to reflect the percentage change in cost of
				  living, as defined in Section
				  51
				  of the Revenue and Taxation Code; provided that such value shall not reflect an
				  increase in excess of 2 percent of the taxable value of the preceding lien
				  date.
(6) Taxable value. Taxable
				  value means the base year full value adjusted for any given lien date as
				  required by law or the full cash value for the same lien date, whichever is
				  less.
(7) Property tax rate. The
				  property tax rate is the rate calculated in accordance with the ad valorem tax
				  limitation prescribed by Section
				  1 of Article XIII A of the
				  Constitution.