Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2014
 

Property Tax Annotations


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610.0000 NEWLY CONSTRUCTED PROPERTY

Annotation 610.0004.005

610.0004.005 Automatic Builder's Exclusion. Revenue and Taxation Code section 75.12(a)(1)(A) provides an exclusion from reassessment for new construction that the owner does not intend to use or occupy if the owner provides the assessor with timely notice of this intent. Section 75.12(a)(1)(B) provides that the new construction for resale exclusion is automatic and no notice is required if all of the following conditions are met: (1) the property is subdivided into five or more parcels, (2) a map describing the parcels has been recorded, and (3) single-family residences will be constructed on the parcels.

The test for the automatic exclusion must be applied to each subsequent owner. If any owner fails to qualify for the automatic exclusion, he/she must provide timely notice to the assessor. A subsequent owner must acquire at least five lots in the same subdivision in order for the automatic new construction exclusion to apply. Parcels with previously-existing residences within the subdivision do not count towards the five parcel minimum. Only lots on which single-family residences will be constructed qualify for the automatic exclusion. If any owner fails to qualify for the automatic exclusion, he/she must provide timely notice to the assessor that they do not intend to use or occupy the property. C 1/23/2008.