Tuesday, February 7, 2012
Some types of new construction are excluded from property tax assessment:
This program excludes from supplemental assessment any newly completed inventory owned by a builder who does not intend to occupy or use the property. In this case, the appraisal of new construction is delayed until certain other events occur.
The owner must build with the intention of selling the property, and must also file an application with the Assessor's Office no later than 30 days after the start of construction. If the property qualifies, the new construction will not be appraised until lien date unless it is sold, rented, or occupied before then. The owner must also notify the Assessor within 45 days of leasing or renting the property, or using the property for themselves. An application for this exclusion must be filed with the Assessor and the appropriate form can be found in the FORMS section of this site. If you have further questions you may call our office at (916) 875-0700 (9am to 4pm), or fax us at (916) 875-0705. (ref. R&T 75.12).
The addition of an active solar energy system to an existing structure is excluded from property tax assessment under Revenue and Tax code section 73, which defines the term 'active solar energy system' as any system that uses solar devices which are thermally isolated from living space or any other area where the energy is used, to provide for the collection, storage, or distribution of solar energy.
Active solar energy systems may be used for any of the following: (a) domestic, recreational, therapeutic, or service water heating; (b) space conditioning; (c) production of electricity; (d) process heat, (e) solar mechanical energy.
Pipes, ducts, tanks, and other auxiliary equipment used in a solar energy system that also carry or use energy from sources other than solar energy are assessable at 75% of their market value. Excluded from this benefit are solar swimming pool heaters or hot tub heaters.
As of September 2008, this exclusion was modified further to include the construction of an active solar energy system in a new building where:
The exclusion from “new construction” provided by this subdivision also applies to the initial purchaser who purchases the new building from the owner-builder, but only if:
The initial purchaser must file a claim with the Assessor and provide any documents necessary to identify the value attributable to the active solar energy system included in the purchase price of the new building. The claim shall also identify the amount of any rebate for the active solar energy system provided to either the owner-builder or the initial purchaser.
Active Solar Energy Systems are NOT excluded from reassessment when property changes ownership after the initial purchase.
This program remains in effect until January 1, 2017. If you feel your property qualifies for this exclusion, contact the Assessor to obtain a claim form or for more information you may call our office at (916) 875-0700 (9am to 4pm), or fax us at (916) 875-0705.
The addition of fire sprinkler, fire extinguishing, fire detection, and/or fire-related egress improvements to an existing structure are excluded from property tax assessment. However, such items are NOT excluded from reassessment when property changes ownership.
No application is required; however, if you think your property qualifies for this exclusion, contact the Assessor immediately. Call (916) 875-0700 (9am to 4pm). (ref. R&T 74)
The disabled access exclusion is available in two formats: one designed for the typical homeowner and the other for commercial property owners.
Modifications made in order to make an existing residence more accessible to a severely and permanently disabled person or persons are excluded from reassessment if certain conditions are met. The residence must be eligible for the Homeowners' Exemption, and the applicant must file a physician's certification of disability with their application. Swimming pools and spas are excluded from this benefit, although items used to make the pool or spa more accessible would be eligible.
A "severely and permanently disabled person" is defined as any person who has a physical disability or impairment, whether from birth or by reason of accident or disease, that results in a functional limitation as to employment or substantially limits one or more major life activities of that person. The definition also requires that the condition must have been diagnosed as permanently affecting the person's ability to function, including, but not limited to, any disability or impairment that affects sight, speech, hearing, or the use of any limbs.
Please note that existing disabled-access accommodations are NOT excluded from reassessment when property changes ownership.
An application for this exclusion must be filed with the Assessor and the appropriate form can be found in the FORMS section of this site. You may call our office at (916) 875-0700 (9am to 4pm), or fax us at (916) 875-0705. (ref. R&T 74.3)
Modifications made in order to make an existing structure or commercial property more accessible to disabled persons are also excluded from reassessment if certain conditions are met. An owner must notify the Assessor prior to, or within 30 days of, the completion of any project for making improvements of this nature and state that he or she intends to claim this exclusion.
Please note that previously installed disabled-access accommodations are NOT excluded from reassessment when property changes ownership.
An application for this exclusion must be filed with the Assessor and the appropriate form can be found in the FORMS section of this site. You may call our office at (916) 875-0700 (9am to 4pm), or fax us at (916) 875-0705. (ref. R&T 74.6)
Specified seismic retrofitting and earthquake hazard mitigation features that are added to existing buildings may be excluded from reassessment. An owner must notify the Assessor prior to, or within 30 days of, the completion of the construction project that he or she intends to claim this exclusion. The applicant must also certify (or have certified) to the Assessor in writing those portions of any new construction project that are specifically attributable to seismic retrofit or earthquake mitigation technologies.
Please note that previously installed seismic retrofit or earthquake mitigation technologies are NOT excluded from reassessment when property changes ownership.
An application for this exclusion must be filed with the Assessor and the appropriate form can be found in the FORMS section of this site. You may call our office at (916) 875-0700 (9am to 4pm). (ref. R&T 74.5)
