Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2018

Property Tax Annotations

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850.0000 VALUE

Annotation 850.0015

850.0015 Decline in Value. A decline in the value of real property that occurs subsequent to the purchase date but prior to the first succeeding lien date must be reflected on the first lien date under section 2(b) of article XIII A of the California Constitution. Revenue and Taxation Code section 50 should be interpreted as the general rule, applicable only in instances in which no decline in value has occurred.

Under Revenue and Taxation Code section 75.10, the full cash value of a property on the date of a change in ownership is the new base year value (commencing with the 1983-84 assessment year). This new base year value is used for both supplemental roll purposes and regular roll purposes. If there is a subsequent value decline, the new base year value remains and values can rise back to that level without the two-percent-per-year limitation. Thus, where there is a loss of value before the first lien date, the amount entered on the regular assessment roll for the first time is simply an interim taxable value and not the new base year value. The new base year value will, of course, be used on the supplemental roll, and it will have to be retained for future determination of value purposes. LTA 5/23/1986 (No. 86/36); LTA 9/25/1992 (No. 92/63).