Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2011

Revenue and Taxation Code

Property Taxation

Part 2. Assessment

CHAPTER 1. Taxation Base

Article 1. Taxable and Exempt Property

Section 212

212. Intangibles; money kept on hand. (a) Notes, debentures, shares of capital stock, solvent credits, bonds, deeds of trust, mortgages, and any interest in that property are exempt from taxation.

(b) Money kept on hand to be used in the ordinary and regular course of a trade, profession, or business is exempt from taxation.

(c) Intangible assets and rights are exempt from taxation and, except as otherwise provided in the following sentence, the value of intangible assets and rights shall not enhance or be reflected in the value of taxable property. Taxable property may be assessed and valued by assuming the presence of intangible assets or rights necessary to put the taxable property to beneficial or productive use.

History.—Stats. 1967, p. 3905, in effect August 31, 1967, added "solvent credits" to first paragraph, and all of last paragraph. Stats. 1995, Ch. 498, in effect January 1, 1996, added the subdivision letters (a) and (b); substituted "that" for "such" after "interest in" in subdivision (a); and added subdivision (c).

Federal reserve and national bank notes.—Federal reserve notes and national bank notes are not exempted by this section. Beery v. Los Angeles County, 116 Cal.App.2d 290.