Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2011
 

Revenue and Taxation Code

Property Taxation

Part 3. Equalization

Chapter 1. Equalization by County Board of Equalization

Article 1. Generally

Section 1606

1606. Exchange of information. (a) (1) Any applicant for a change of an assessment on the local roll or the assessor, in those cases where the assessed value of the property involved, as shown on the current assessment roll, exceeds one hundred thousand dollars ($100,000) without regard to any

exemptions, may initiate an exchange of information with the other party by submitting the following data to the other party and the clerk in writing:

(A) Information stating the basis of the party's opinion of value.

(B) When the opinion of value is to be supported with evidence of comparable sales, information identifying the properties with sufficient certainty such as by assessor parcel number, street address or legal description of the property, the approximate date of sale, the applicable zoning, the price paid, and the terms of the sale, if known.

(C) When the opinion of value is to be supported with evidence based on an income study, information relating to income, expenses and the capitalization method.

(D) When the opinion of value is to be supported with evidence of replacement costs, information relating to date of construction, type of construction, replacement cost of construction, obsolescence, allowance for extraordinary use of machinery and equipment, and depreciation allowances.

(2) To initiate an exchange of information, the initiating party shall submit the data required by paragraph (1) at least 30 days before the commencement of the hearing on the application. For purposes of determining the date upon which the exchange was deemed initiated, the date of postmark as affixed by the United States Postal Service, or the date certified by a bona fide private courier service on the envelope or package containing the information shall control.

(b) (1) Notwithstanding any limitation on assessed value contained in subdivision (a), if the initiating party has submitted the data required by subdivision (a) within the specified time, the other party shall submit to the initiating party and clerk the following data:

(A) Information stating the basis of the other party's opinion of value.

(B) When the opinion of value is to be supported with evidence of comparable sales, information identifying the properties with sufficient certainty such as by assessor parcel number, street address or legal description of the property, the approximate date of sale, the applicable zoning, the price paid, and the terms of the sale, if known.

(C) When the opinion of value is to be supported with evidence based on an income study, information relating to income, expenses and the capitalization method.

(D) When the opinion of value is to be supported with evidence of replacement cost, information relating to date of construction, type of construction, replacement cost of construction, obsolescence, allowance for extraordinary use of machinery and equipment, and depreciation allowances.

(2) The other party shall submit the data required by this subdivision at least 15 days prior to the hearing. For purposes of determining the date upon which the other party responded to the exchange, the date of postmark as affixed by the United States Postal Service, or the date certified by a bona fide private courier service on the envelope or package containing the information shall control.

(c) (1) The person assigning a hearing date shall provide adequate notice to the parties of the date, so that the exchange of information permitted by this section can be made without requiring a continuance of the hearing.

(2) The initiating party and the other party shall use adequate methods of submission to ensure to the best of their ability that the exchange of information process is completed at least 10 days prior to the hearing.

(d) Whenever information has been exchanged pursuant to this section the parties may not introduce evidence on matters not so exchanged unless the other party consents to such introduction. However, at the hearing, each party may introduce new material relating to the information received from the other party. If a party introduces new material at the hearing, the other party, upon his or her request, shall be granted a continuance for a reasonable period of time.

(e) Nothing in this section may be construed as an intent of the Legislature to change, alter or modify generally acceptable methods of using the sales approach, income approach, or replacement cost approach to determine full cash value.

History.—Added by Stats. 1969, p. 2639, in effect November 10, 1969, applicable to assessments made on or after the 1970 lien date. Stats. 1973, Ch. 782, p. 1395, in effect January 1, 1974, in the introduction of subdivision (a): added "commencement of the" before "hearing"; added the provisions allowing the assessor to initiate exchange of information as well as applicant; and added the limitation on the assessed value of property for which exchange of information could be initiated. In the introduction of subdivision (b)added "Notwithstanding any limitation on assessed value contained in subdivision (a)" at the beginning, and changed the balance of the introduction and subdivision (b)(1) to reflect the fact that the assessor as well as the applicant could have initiated the exchange of information. Added "opinion of" before "value" in subdivisions (b)(2), (b)(3) and (b)(4). Stats. 1974, Ch. 180, p. 360, in effect April 24, 1974, renumbered the section which was formerly numbered 1608.7, and substituted ":" for "." at the end of subdivision (a). Stats. 1978, Ch. 1207, in effect January 1, 1979, operative January 1, 1981, substituted "one hundred thousand dollars ($100,000)" for "twenty-five thousand dollars ($25,000)" in the first sentence of subdivision (a). Stats. 2001, Ch. 407 (SB 1181), in effect January 1, 2002, designated the former first sentence of the first paragraph as paragraph (1) and deleted "At the time of filing the application or at any time prior to 20 days before the commencement of the hearing on the application," before "Any", substituted "initiate" for "cause" after "may", substituted "with" for "between himself and" after "information", and added "and the clerk" after the second "other party" therein, relettered former paragraph (1) as subparagraph (A) and substituted "the" for "such" after "basis of" therein, relettered former paragraphs (2), (3), and (4) as subparagraphs (B), (C), and (D), respectively, and added paragraph (2) of subdivision (a); designated the former first sentence of the first paragraph as paragraph (1) and substituted "the initiating party" for "an applicant for a change of an assessment or the assessor" after "if", deleted "at least 10 days prior to the hearing" after "time," and substituted "initiating party and clerk" for "party who caused the exchange of information in writing" after "to the" therein, relettered former paragraph (1) as subparagraph (A) and substituted "the" for "such" after "basis of" therein, relettered former paragraphs (2), (3), and (4) as subparagraphs (B), (C), and (D), respectively, and added paragraph (2) of subdivision (b); designated the former second paragraph of subdivision (b) as paragraph (1) of subdivision (c) and added paragraph (2) therein, designated the former third paragraph as subdivision (d) and added "or her" after "his" in the third sentence therein; and designated the former fourth paragraph of subdivision (b) as subdivision (e) and substituted "may" for "shall" after "section" in the first sentence therein.

Note.—Section 12 of Stats. 2001, Ch. 407 (SB 1181) provided that notwithstanding Section 17610 of the Government Code, if the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. If the statewide cost of the claim for reimbursement does not exceed one million dollars ($1,000,000), reimbursement shall be made from the State Mandates Claims Fund.

Construction.—This section is a discovery device created to promote a fair and effective adversary equalization process and is to be given a reasonable and common sense interpretation. If the exchange of information provides reasonable notice to the opposition concerning the subject matter to be presented at the equalization hearing, the section has been complied with. There is no requirement that the details of evidence to be introduced must be exchanged. Bank of America v. Fresno County, 127 Cal.App.3d 295. As counties are expressly authorized to adopt rules for assessment for assessment appeal hearings, a county rule consistent with Section 441 is not precluded by this section. State Board of Equalization v. Ceniceros, 63 Cal.App.4th 122.