Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2014
 

Property Tax Annotations


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S

755.0000 STATE-ASSESSED PROPERTY

Annotation 755.0100

755.0100 Stock and Debt Method. The stock and debt value indicator does not include either the value of a special franchise or a general franchise because these property rights constitute a continuing obligation of the company. The right to do business in California is a continuing obligation that must be renewed annually. The most a stock investor buys is the "expectation" of doing business in California, and it is this expectation which is included in the stock price, not the right to do business. This expectation is as much a taxable entity as any other motive would be for paying a certain price. It is not a portion of the exempt general franchise. C 4/18/1979.