Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2010
 

Revenue and Taxation Code

Property Taxation

Part 2. Assessment

Chapter 3. Assessment Generally

Article 1.9. Historical Property*

Section 439.3

439.3. Valuing enforceably restricted historical property where notice of nonrenewal given. Notwithstanding any provision of Section 439.2 to the contrary, if either the county or city or the owner of restricted historical property subject to contract has served notice of nonrenewal as provided in Section 50282 of the Government Code, the county assessor shall value that restricted historical property as provided in this section.

(a) Following the hearing conducted pursuant to Section 50285 of the Government Code, subdivision (b) shall apply until the termination of the period for which the restricted historical property is enforceably restricted.

(b) The board or assessor in each year until the termination of the period for which the property is enforceably restricted shall do all of the following:

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

(2) Determine the value of the property by the capitalization of income method as provided in Section 439.2 and without regard to the fact that a notice of nonrenewal or cancellation has occurred.

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

(4) Using the rate announced by the board pursuant to paragraph (1) of subdivision (b) of Section 439.2, discount the amount obtained in paragraph (3) for the number of years remaining until the termination of the period for which the property is enforceably restricted.

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

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

History.—Stats. 1984, Ch. 678, in effect January 1, 1985, deleted "the board, for purposes of surveys required by Section 1815 and" after "Code," in the first sentence. Stats. 1993, Ch. 831, in effect October 6, 1993, substituted "that" for "such" after "value" in the first sentence; added "do all of the following:" after "shall" in subdivision (b); substituted "pursuant to Section 110.1." for "as if it were not subject to an enforceable restriction;" after "property" in paragraph (1) of subdivision (b); and added the second and third sentences thereto; substituted "." for ";" after "occurred" in paragraph (2) of subdivision (b); substituted "." for "of this subdivision;" after "(1)" in paragraph (3) of subdivision (b); deleted "of this subdivision" after "(3)" and substituted "." for ";" after "restricted" in paragraph (4) of subdivision (b); deleted "of this subdivision" after "(2)" and substituted "." for "of this subdivision; and" after "(4)" in paragraph (5) of subdivision (b); and deleted "of this subdivision" after "(5)" in paragraph (6) of subdivision (b).

* Article 1.9 was added by Stats. 1977, Ch. 1040, in effect January 1, 1978. Purpose of this article is to implement Proposition 7 (Res. Ch. 198, Stats. 1974) on ballot for the Primary Election of June 8, 1976 which amended Section 8 of Article XIII of the California Constitution.

Note.—Section 6, Stats. 1977, Ch. 1040, provided that the state shall not be required to provide subventions for revenues lost to a city, county, and county by reason of such city, county or city and county acting pursuant to the provisions of this act. Sec. 7 provided Bd. of Equal. to report to Legislature on or before December 31, 1980 evaluating the effect of this act.