Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2013
 

Revenue and Taxation Code

Property Taxation

Part 4. Levy of Tax

CHAPTER 2. Effect of Tax

Section 2188.5

2188.5. Planned developments; separate assessment. (a) (1) Subject to the limitations set forth in subdivision (b), whenever real property has been divided into planned developments as defined in Section 11003 of the Business and Professions Code, the interests therein shall be presumed to be the value of each separately owned lot, parcel, or area, and the assessment shall reflect this value, which includes all of the following:

(A) The assessment attributable to the value of the separately owned lot, parcel, or area and the improvements thereon.

(B) The assessment attributable to the share in the common area reserved as an appurtenance of the separately owned lot, parcel, or area.

(C) The new base year value of the common area resulting from any change in ownership pursuant to Chapter 2 (commencing with Section 60) or new construction pursuant to Chapter 3 (commencing with Section 70) attributable to the share in the common area reserved as an appurtenance of the separately owned lot, parcel, or area.

(2) For the purposes of this section, "common area" shall mean the land and improvements within a lot, parcel, or area, the beneficial use and enjoyment of which is reserved in whole or in part as an appurtenance to the separately owned lots, parcels, or areas, whether this common area is held in common or through ownership of shares of stock or membership in an owners' association. The tax on each separately owned lot, parcel, or area, shall constitute a lien solely thereon and upon the proportionate interest in the common area appurtenant thereto.

(b) Assessment in accordance with subdivision (a) shall only be required with respect to those planned developments that satisfy both of the following conditions:

(1) The development is located entirely within a single tax code area.

(2) The entire beneficial ownership of the common area is reserved as an appurtenance to the separately owned lots, parcels, or areas.

(c) The amendment to subdivision (b) made by Chapter 407 of the Statutes of 1984 shall apply to real property that has been divided into planned developments, as defined in Section 11003 of the Business and Professions Code, on and after the effective date of Chapter 407 of the Statutes of 1984.

History.—Added by Stats. 1971, p. 2142, in effect March 4, 1972. Stats. 1984, Ch. 407, in effect January 1, 1985, substituted "the" for "such" before "assessment," substituted "this" for "such" after "reflect," and added "all of" after "includes" in the first sentence of the first paragraph of subdivision (a), deleted "and" after "thereon" in subsection (1) thereof, added subsection (3) thereto, and substituted "this" for "such" after "whether" in the second paragraph thereof; added "which satisfy both of the following conditions" after "developments" in subdivision (b), substituted "The development is" for "which are" in subsection (1) thereof, deleted former subsection (2) thereof, and renumbered former subsection (3) thereof as (2); added subdivision (c); and made conforming punctuation changes. Stats. 2006, Ch. 538 (SB 1852), in effect January 1, 2007, designated the former first paragraph of subdivision (a) as paragraph (1) thereof, substituted "Section 11003" for "Sections 11003 and 11003.1" after "as defined in", added a comma between "parcel" and "or area", and added a comma between "value" and "which" in the first sentence therein, designated former paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), respectively, and added a comma between "parcel" and "or area" in the first sentence of subparagraphs (B) and (C); designated the former second paragraph as paragraph (2) thereof, added a comma between "parcel" and "or area" and added a comma between "parcels" and "or areas" and deleted "as defined in Section 11003.1 of the Business and Professions Code" after "owners' association" in the first sentence therein; deleted "the provisions of" after "in accordance with" and substituted "that" for "which" after "planned developments" in the first sentence of the first paragraph of subdivision (b) and added a comma between "parcels" and "or areas" in the first sentence of paragraph (2) therein; substituted "Chapter 407 of the Statutes of 1984" for "the act adding this subdivision" after "made by", substituted "that" for "which" after "to real property", substituted "Section 11003" for "Sections 11003 and 11003.1" after "as defined in", and substituted "Chapter 407 of the Statutes of 1984" for "the act adding this subdivision" after "effective date of" in the first sentence of subdivision (c).

Note.—Section 2 of Stats. 1984, Ch. 407, provided that notwithstanding Section 6 of Article XIII B of the California Constitution and Section 2231 or 2234 of the Revenue and Taxation Code, no appropriation is made for reimbursement. SEC. 3 provided that the act does not contain a repealer.