Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2014
 

Property Tax Annotations


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N

610.0000 NEWLY CONSTRUCTED PROPERTY

Annotation 610.0004.010

610.0004.010 Builder's Exclusion. Revenue and Taxation Code section 75.12(a)(1)(B) requires that the builder/owner meet the requirements for the exclusion at the commencement of construction. There is no requirement that the builder/owner continue to meet the requirements throughout their ownership of the property. However, if the builder/owner occupies or uses the property in contradiction to section 75.12, then the exclusion is lost.

An "owner" for purposes of section 75.12(a) is presumed to be the holder of the legal title to the property. Thus, a person would be considered the owner of the lots he owns as an individual or as a joint tenant. However, that person would not be considered the owner of the lots owned by X Corporation even though he owns 100 percent of the interests in X Corporation because the separate identity of legal entities is respected for property tax purposes. Therefore, in the same subdivision, a person who owns two lots as an individual, another two lots as a joint tenant with others, and owns a wholly owned corporation that owns an additional two lots, is not eligible for the automatic builder's exclusion because that person was an owner of only four lots. C 12/13/2011.