Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2011
 

Revenue and Taxation Code

Property Taxation

Part 0.5. Implementation of Article XIII A of the California Constitution

Chapter 3. New Construction

Section 71

71. New base year value. The assessor shall determine the new base year value for the portion of any taxable real property which has been newly constructed. The base year value of the remainder of the property assessed, which did not undergo new construction, shall not be changed. New construction in progress on the lien date shall be appraised at its full value on such date and each lien date thereafter until the date of completion, at which time the entire portion of property which is newly constructed shall be reappraised at its full value.

Construction.—Property Tax Rule 463, which provides that if a given unit within a multiple structure development is capable of being occupied and utilized without regard to the completion of the remaining structures, a base year date and value should be set at that time, is consistent with the Legislature's intent in enacting Section 71, which requires a reappraisal of the "entire portion of property which is newly constructed." And Rule 463(e), which defines "date of completion" of new construction as "the date the property or portion thereof is available for use," giving consideration to the date of the final inspection by the appropriate governmental official, the date the prime contractor fulfills all contract obligations, or the date of the completion of testing of machinery and equipment, comports with Section 71, which requires that new construction be reappraised at the date of completion. Pope v. State Board of Equalization, 146 Cal.App.3d 1132. The date of completion of new construction for purposes of assessing real property taxes pursuant to Article XIII A of the Constitution is the date the property or portion thereof is available for use. Frederick v. Sonoma County, 176 Cal.App.3d 1243.