Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2010
 

Revenue and Taxation Code

Property Taxation

Part 2. Assessment

Chapter 3. Assessment Generally

Article 1.5. Valuation of Open-Space Land Subject to an Enforceable Restriction*

Section 426

426. Valuation where restriction will be terminated. (a) Notwith-standing any provision of Section 423 to the contrary, if either the county, city, or nonprofit organization or the owner of land subject to contract, agreement, scenic restriction, or open-space easement has served notice of nonrenewal as provided in Section 51091, 51245, or 51296.9 of the Government Code, and the county assessors shall, unless the parties shall have subsequently rescinded the contract pursuant to Section 51254 or 51255 of the Government Code, value the land as provided in this section.

(b) If the owner of land serves notice of nonrenewal or the county, city, or nonprofit organization serves notice of nonrenewal and the owner fails to protest as provided in Section 51091, 51245, or 51296.9 of the Government Code, subdivision (c) shall apply immediately. If the county, city, or nonprofit organization serves notice of nonrenewal and the owner does protest as provided in Section 51091, 51245, or 51296 of the Government Code, subdivision (c) shall apply when less than six years remain until the termination of the period for which the land is enforceably restricted.

(c) Where any of the conditions in subdivision (b) apply, the board or assessor in each year until the termination of the period for which the land is enforceably restricted shall do all of the following:

(1) Determine the value of the land pursuant to Section 110.1. If the land is not subject to Section 110.1 when the restriction expires, the value shall be determined pursuant to Section 110 as if it were free of contractual restriction. If the land will be subject to a use for which this code provides a special restricted assessment, the value shall be determined as if it were subject to the new restriction.

(2) Determine the value of the land by capitalization of income as provided in Section 423 and without regard to the existence of any of the conditions in subdivision (b).

(3) Subtract the value determined in paragraph (2) of subdivision (c) by capitalization of income from the full value determined in paragraph (1).

(4) Using the rate announced by the board pursuant to paragraph (1) of subdivision (b) of Section 423, discount the amount obtained in paragraph (3) for the number of years remaining until the termination of the contract, agreement, scenic restriction, or open-space easement.

(5) Determine the value of the land by adding the value determined by capitalization of income as provided in paragraph (2) and the value obtained in paragraph (4).

(6) Apply the ratio prescribed in Section 401 to the value of the land determined in paragraph (5) to obtain its assessed value.

History.—Added by Stats. 1969, p. 1191, in effect November 10, 1969. Stats. 1974, Ch. 1003, p. 2160, in effect January 1, 1975, substituted the first paragraph and subdivision (a) for the former first sentence and subdivision (a)(1), (2), (3), (4), and (5). Stats. 1975, Ch. 224, p. 603, in effect January 1, 1976, added "scenic restriction," after "agreement," in the first sentence of the first paragraph, substituted "the termination of the period for which the land is enforceably restricted" for "the expiration of the enforceable restriction" in the second sentence of subdivision (a), substituted "the period for which the land is enforceably restricted" for "the enforceable restriction" in subdivisions (b) and (b)(4), and substituted "enforceably restricted" for "subject to enforceable restriction" in subdivision (b)(1). Stats. 1977, Ch. 1178, in effect January 1, 1978, added "nonprofit organization" and deleted "s" from "Section" before "51091" in the first paragraph and in subdivision (a), added ", unless the parties have subsequently rescinded such contract pursuant to Section 51254 or 51255 of the Government Code," to the first paragraph, and deleted "subject to" after "not" in subdivision (b)(1). Stats. 1982, Ch. 1366, in effect January 1, 1983, in addition to making a number of grammatical changes throughout this section, added "do all of the following" after "shall" in the first sentence of subdivision (b), deleted "full cash" before "value" and substituted "pursuant to Section 110.1 of the Revenue and Taxation Code" for "as if it were not enforceably restricted" after "land" in the first sentence, and added the second and third sentences in paragraph (1), deleted "cash" after "full" in paragraph (3), and deleted "of this section" before "for the", and substituted "contract, agreement, scenic restriction, or open-space easement" for "period for which the land is enforceably restricted" in paragraph (4) of subdivision (b). Stats. 1984, Ch. 678, in effect January 1, 1985, deleted "the board, for purposes of surveys required by Section 1815," after "51245 of the Government Code." in the first paragraph. Stats. 1998, Ch. 353 (SB 1182), in effect August 24, 1998, substituted "Section 51091, 51245, or 51296" for "Section 51091 or 51245" after "provided in" in the first sentence, and substituted "Section 51091, 51245, or 51296" for "Section 51091 or 51245" after "provided in" twice, in the first and second sentence of subdivision (a). Stats. 2002, Ch. 616 (SB 1864), in effect January 1, 2003, substituted "51296.9" for "51296" after "in Section 51091, 51245, or" twice, in the first sentence of the first paragraph and in the first sentence of subdivision (a). Stats. 2003, Ch. 62 (SB 600), in effect January 1, 2004, designated the first paragraph as subdivision (a); relettered former subdivision (a) as subdivision (b), and substituted "subdivision (c)" for "subdivision (b)" after "Government Code," in the first sentence and in the second sentence therein; relettered former subdivision (b) as subdivision (c), and substituted "subdivision (b)" for "subdivision (a)" after "the conditions in" in the first sentence, and deleted "of the Revenue and Taxation Code" after "Section 110.1" in the first and second sentences, deleted "of the Revenue and Taxation Code" after "Section 110" in the second sentence, and substituted "this code" for "the Revenue and Taxation Code" after "use for which" in the third sentence in paragraph (1), substituted "subdivision (b)" for "subdivision (a)" after "the conditions in" in the first sentence of paragraph (2), substituted "subdivision (c)" for "subdivision (b)" after "paragraph (2) of" and deleted "of subdivision (b)" after "in paragraph (1)" in the first sentence of paragraph (3), deleted "of subdivision (b)" after "in paragraph (3)" in the first sentence of paragraph (4), deleted "of subdivision (b)" after "in paragraph (2)" and deleted "of subdivision (b)" after "in paragraph (4)" in the first sentence of paragraph (5), and deleted "of subdivision (b)" after "in paragraph (5)" in the first sentence of paragraph (6) therein.

* Stats. 1969, p. 1930, in effect November 10, 1969, repealed Section 4 of Stats. 1967, p. 3651, which made Article 1.5 operative only until the 61st day following adjournment of the Regular Session of the 1970 Legislature.