2005 California Revenue and Taxation Code Sections 75.10-75.15 Article 2. Assessments on the Supplemental Roll

75.10.  (a) Commencing with the 1983-84 assessment year and each
assessment year thereafter, whenever a change in ownership occurs or
new construction resulting from actual physical new construction on
the site is completed, the assessor shall appraise the property
changing ownership or the new construction at its full cash value
(except as provided in Section 68 and subdivision (b) of this
section) on the date the change in ownership occurs or the new
construction is completed.  The value so determined shall be the new
base year value of the property or the new construction.
   (b) For purposes of this chapter, "actual physical new
construction" includes the removal of a structure from land.  The new
base year value of the remaining property (after the removal of the
structure) shall be determined in the same manner as provided in
subdivision (b) of Section 51.
   (c) For purposes of this section, "actual physical new
construction" includes the discovery of previously unknown reserves
of oil or gas.
75.11.  (a) If the change in ownership occurs or the new
construction is completed on or after January 1 but on or before May
31, then there shall be two supplemental assessments placed on the
supplemental roll.  The first supplemental assessment shall be the
difference between the new base year value and the taxable value on
the current roll.  In the case of a change in ownership of the full
interest in the real property, the second supplemental assessment
shall be the difference between the new base year value and the
taxable value to be enrolled on the roll being prepared.  If the
change in ownership is of only a partial interest in the real
property, the second supplemental assessment shall be the difference
between the sum of the new base year value of the portion transferred
plus the taxable value on the roll being prepared of the remainder
of the property and the taxable value on the roll being prepared of
the whole property.  For new construction, the second supplemental
assessment shall be the value change due to the new construction.
   (b) If the change in ownership occurs or the new construction is
completed on or after June 1 but before the succeeding January 1,
then the supplemental assessment placed on the supplemental roll
shall be the difference between the new base year value and the
taxable value on the current roll.
   (c) If there are multiple changes in ownership or multiple
completions of new construction, or both, with respect to the same
real property during the same assessment year, then there shall be a
net supplemental assessment placed on the supplemental roll, in
addition to the assessment pursuant to subdivision (a) or (b).  The
net supplemental assessment shall be the most recent new base year
value less the sum of (1) the previous entry or entries placed on the
supplemental roll computed pursuant to subdivision (a) or (b), and
(2) the corresponding taxable value on the current roll or the
taxable value to be entered on the roll being prepared, or both,
depending on the date or dates the change of ownership occurs or new
construction is completed as specified in subdivisions (a) and (b).
   (d) No supplemental assessment authorized by this section shall be
valid, or have any force or effect, unless it is placed on the
supplemental roll on or before the applicable date specified in
paragraph (1), (2), or (3), as follows:
   (1) The fourth July 1 following the July 1 of the assessment year
in which the event giving rise to the supplemental assessment
occurred.
   (2) The eighth July 1 following the July 1 of the assessment year
in which the event giving rise to the supplemental assessment
occurred, if the penalty provided for in Section 504 is added to the
assessment.
   (3) The eighth July 1 following the July 1 of the assessment year
in which the event giving rise to the supplemental assessment
occurred, if the change in ownership was unrecorded and a change in
ownership statement required by Section 480 or preliminary change in
ownership report, as required by Section 480.3, was not timely filed.
   (4) Notwithstanding paragraphs (1), (2), and (3), there shall be
no limitation period on making a supplemental assessment, if the
penalty provided for in Section 503 is added to the assessment.
   For the purposes of this subdivision, "assessment year" means the
period beginning annually as of 12:01 a.m. on the first day of
January and ending immediately prior to the succeeding first day of
January.
   (e) If, before the expiration of the applicable period specified
in subdivision (d) for making a supplemental assessment, the taxpayer
and the assessor agree in writing to extend the period for making a
supplemental assessment, correction, or claim for refund, a
supplemental assessment may be made at any time prior to the
expiration of that extended period.  The extended period may be
further extended by successive written agreements entered into prior
to the expiration of the most recent extension.
75.12.  (a) For the purposes of this chapter, new construction shall
be deemed completed on the earliest of the following dates:
   (1) (A) The date upon which the new construction is available for
use by the owner, unless the owner does not intend to occupy or use
the property. The owner shall notify the assessor prior to, or within
30 days of, the date of commencement of construction that he or she
does not intend to occupy or use the property. If the owner does not
notify the assessor as provided in this subdivision, the date shall
be conclusively presumed to be the date of completion.
   (B) Notwithstanding subparagraph (A), an owner is not required to
provide the notice described in subparagraph (A) and it is rebuttably
presumed that a supplemental assessment is not required on property
described in clauses (i) to (iii), inclusive, if the owner's property
meets all of the following conditions:
   (i) The property is subdivided into five or more parcels in
accordance with the Subdivision Map Act (Division 2 (commencing with
Section 66410) of Title 7 of the Government Code), or any successor
to that law.
   (ii) A map describing the parcels has been recorded.
   (iii) Zoning regulations that are applicable to the parcels or
building permits for the parcels require that, except for parcels
dedicated for public use, single-family residences will be
constructed on the parcels.
   (2) If the owner does not intend to occupy or use the property,
the date the property is occupied or used with the owner's consent.
   (3) If the property cannot be functionally used or occupied on the
date it is available for use considering the type of property and
any special facts and circumstances affecting use or occupancy, the
date the property can be functionally used or occupied.
   (b) For the purposes of this section:
   (1) "Occupy or use" means the occupancy or use by the owner,
including the rental or lease of the property, except as provided in
paragraph (2).
   (2) Property shall not be considered occupied or used by the owner
or with the owner's consent if the occupancy or use is incidental to
an offer for a change of ownership, including, but not limited to,
use of the property as a model home.
   (c) The board, after consultation with the California Assessors
Association, shall adopt rules and regulations defining the date of
completion of new construction in accordance with this section. The
rules and regulations shall not define the date of completion in a
manner that the date of completion of all new construction is
postponed until the following lien date.
   (d) Nothing in this section shall preclude the reassessment of
that property on the assessment roll for January 1 following the date
of completion.
   (e) The owner of any property who notifies the assessor pursuant
to subdivision (a) that he or she does not intend to occupy or use
the property shall notify the assessor within 45 days of the earliest
date that any of the following occur:
   (1) The property changes ownership pursuant to an unrecorded
contract of sale.
   (2) The property is leased or rented.
   (3) The property is occupied or used by the owner for any purpose
other than provided in subdivision (b).
   (4) The property is occupied or used with the owner's consent for
any purpose other than provided in subdivision (b).
   (f) The failure to provide the assessor the notice required by
subdivision (e), whether requested or not, shall result in a penalty
in the amount specified in Section 482.
75.13.  Any supplemental assessment shall not be deemed to be an
escaped assessment subject to Section 4837.5.
75.14.  A supplemental assessment pursuant to this chapter shall not
be made for any property not subject to the assessment limitations
of Article XIII A of the California Constitution.  All property
subject to the assessment limitations of Article XIIIA of the
California Constitution shall be subject to the provisions of this
chapter, except as otherwise provided in this article.
75.15.  (a) For fixtures, other than fixtures that are included in a
change in ownership or that are included in a structure and are
assessed at the completion of the new construction of a structure
pursuant to Section 75.12, taxpayers shall report to the assessor
once each year at the time the annual property statement is due, on
the fixtures added to real property and fixtures removed from real
property, the dates of those additions and removals, and the cost of
each in the applicable period as follows:
   (1) In 1997, the prior 10-month period from March 1 to January 1.
   (2) In 1998 and each year thereafter, the prior 12-month period
from January 1 to January 1.
   This reporting requirement shall not apply to fixtures added or
removed on or after the first day of the month following the
effective date of the act adding this sentence to this subdivision.
One supplemental tax bill shall be prepared for those fixtures based
on the cost of the fixtures added and subtracted from real property,
the date of each addition or subtraction, and the appropriate tax
rate computed pursuant to Section 75.41.
   The taxes due from the resulting tax bill shall be collected in
the same manner and at the same times as other supplemental tax bills
mailed on the same date.
   (b) For the purposes of the supplemental roll, taxpayers shall
report pursuant to this section only those fixtures which are taxable
on the supplemental roll.
   (c) This section shall become operative on March 1,  1987.