Laws, Regulations & Annotations
Property Taxes Law Guide – Revision 2017
Property Tax Annotations
460.0000 FULL CASH VALUE
460.0014 Inherited Property. While no negotiations occur at the time a property transfers by inheritance, the value of the property must be established at the amount it would sell for in an arms length transaction involving knowledgeable parties neither of which could take advantage of the exigencies of the other. In valuing such property by the income approach to value, Property Tax Rule 8(d) is applicable, and noneconomic rents payable under existing leases are to be ignored. A valuation of property based on contract rent which is below economic rent reflects only the lessor's interest and does not include the bonus value of the leasehold interest. Dennis v. Santa Clara County, 215 Cal.App.3d 1019.
The existence of a lease that generates non-economic rent does not constitute damage, destruction or other factors causing a decline in value under Revenue and Taxation Code section 51(b). C 12/2/1993.