Laws, Regulations & Annotations
Property Taxes Law Guide – Revision 2017
Revenue and Taxation Code
Part 0.5. Implementation of Article XIII A of the California Constitution
Chapter 3. New Construction
(1) Any addition to real property, whether land or improvements, including fixtures, since the last lien date; and
(2) Any alteration of land or of any improvement, including fixtures, since the last lien date that constitutes a major rehabilitation thereof or that converts the property to a different use.
(b) Any rehabilitation, renovation, or modernization that converts an improvement or fixture to the substantial equivalent of a new improvement or fixture is a major rehabilitation of that improvement or fixture.
(c) Notwithstanding subdivisions (a) and (b), where real property has been damaged or destroyed by misfortune or calamity, "newly constructed" and "new construction" does not mean any timely reconstruction of the real property, or portion thereof, where the property after reconstruction is substantially equivalent to the property prior to damage or destruction. Any reconstruction of real property, or portion thereof, that is not substantially equivalent to the damaged or destroyed property, shall be deemed to be new construction and only that portion that exceeds substantially equivalent reconstruction shall have a new base year value determined pursuant to Section 110.1.
(d) (1) Notwithstanding the provisions of subdivisions (a) and (b), where a tank must be improved, upgraded, or replaced to comply with federal, state, and local regulations on underground storage tanks, "newly constructed" and "new construction" does not mean the improvement, upgrade, or replacement of a tank to meet compliance standards, and the improvement, upgrade, or replacement shall be considered to have been performed for the purpose of normal maintenance and repair.
(2) Notwithstanding subdivisions (a) and (b), where a structure, or any portion thereof, was reconstructed, as a consequence of completing work on an underground storage tank to comply with federal, state, and local regulations on these tanks, timely reconstruction of the structure shall be considered to have been performed for the purpose of normal maintenance and repair where the structure, or portion thereof, after reconstruction is substantially equivalent to the prior structure in size, utility, and function.
History.—Stats. 1983, Ch. 1187, in effect January 1, 1984, operative June 5, 1984, added subdivision (d). Stats. 1999, Ch. 352 (SB 933), in effect September 7, 1999, substituted "that" for "such" after "rehabilitation of" in the first sentence of subdivision (b), added subdivision (e), and substituted "that" for "which" throughout text. Stats. 2001, Ch. 330 (AB 184), in effect September 25, 2001, substituted "not later than six months after the completion of the project" for "on or before the following April 15" after "assessor" in the second sentence, deleted the former third sentence which provided that "The provisions of this subdivision shall not apply to any structure for which a certificate is not filed.", and added the third sentence to paragraph (3) of subdivision (d). Stats. 2008, Ch. 336 (SB 111), operative June 9, 2010, added a comma after "or improvements" and deleted parentheses around "including fixtures" in the first sentence of paragraph (1) and replaced parentheses around "including fixtures" with commas in the first sentence of paragraph (2) of subdivision (a); deleted "the provisions of" after "Notwithstanding" in the first sentence of subdivision (c); deleted former subdivision (d) which related to a 15 year new construction exclusion for seismic safety improvements to unreinforced masonry buildings; and relettered former subdivision (e) as (d) and deleted "the provisions of" after "Notwithstanding" in the first sentence of paragraph (2) therein.
Note.—Section 2 of Stats. 1983, Ch. 1187, provided that no appropriation is made and no reimbursement is required by this act. Sec. 3 thereof provided the provisions of this act shall become operative only if Senate Constitutional Amendment No. 14 of the 1983–84 Regular Session of the Legislature is approved by the voters.
Note.—Section 3 of Stats. 2001, Ch. 330 (AB 184) provided that notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act. Sec. 4 therein provided that this act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.
Note.—Section 5 of Stats. 2008, Ch. 336 (SB 111), provided that the provisions of this act shall become operative only if Senate Constitutional Amendment 4 of the 2007–08 Regular Session is approved by the voters and, in that event, shall become operative on the date upon which this act is chaptered or the effective date of that measure, whichever is later.
Supplemental Assessment—New Construction—Exceptions—Revenue and Taxation Code section 70, subdivision (c), provides an exemption from supplemental assessment for new construction undertaken to restore property damaged as a result of misfortune or calamity. This requires an event out of the ordinary and an unusual incident, not a gradually deteriorating condition. Replacement wells were not exempted from supplemental assessments as normal maintenance and repair or as misfortune or calamity. Chevron USA, Inc., et al. v. County of Kern (2014) 230 Cal.App.4th 1315.