Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2013
 

Property Tax Annotations


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V

850.0000 VALUE

Annotation 850.0029

850.0029 Leasehold Interest. The assignment of a leasehold interest in real property with a remaining term of 38½ years is a change in ownership pursuant to Revenue and Taxation Code section 61(c). As a result, the assignee of a leasehold interest with a term of more than 35 years is considered the owner of the property for change in ownership purposes, and the interest is assessable to the assignee. Upon a change in ownership, Revenue and Taxation Code section 110 and Property Tax Rule 2 require the real property interest transferred to be reassessed at full cash value which is defined as its unencumbered, unrestricted fee simple value. The value of the leased-fee interest encumbered by below-market rents is not considered. C 1/13/2003.