Your Property Assessment

Property Assessments - Proposition 13

Passed by the voters in June, 1978, Proposition 13 substantially changed the taxation of real property in
California. As a result of this Constitutional amendment:

The maximum amount of property tax cannot exceed 1% of the full value of the property, plus payments on any bonds or fees approved by the voters.

  • Real property can only be reappraised upon a change in ownership or new construction. Business personal property, including boats and airplanes, and certain restricted properties remains subject to annual appraisal.
  • Except for these two instances, no increase in the assessed value of any real property can exceed 2% each year, regardless of the rate of inflation. (This limitation does not apply to increases in values resulting from Statutory reductions pursuant to R&T Code Section 51 - Proposition 8)

REAPPRAISALS - Change in Ownership: When a change in ownership (or transfer) occurs, the Assessor will receive a copy of the deed and determines if a reappraisal is required under State law. If required, an appraisal is made to estimate the new full value of the property, as of the date of transfer. The property owner is then notified of the new assessment and that creates the right to appeal the value.

REAPPRAISALS - New Construction: Copies of all building permits are sent to the Assessor by the building
officials of the County and each City within the County. If the construction is new, a reappraisal is required that estimates the value added to the full value of the improvements. Maintenance, such as new roofing, is exempt.
So is the construction of improvements replacing those damaged or unintentionally destroyed.

 

Changes in Value - Proposition 8

When Proposition 13 became law in 1978, it required continuous annual increases in base year values of no more than 2% per year. The resulting assessed values are called "Factored Base Year Values" (FBYV). There was no provision in the new law for reductions in assessed value; even though it appeared that some properties could be declining in value.

This dilemma was addressed in 1978 with the passage of Proposition 8. New provisions were added to tax law
that allow the Assessor to take "…into account reductions in value due to damage, destruction, depreciation, obsolescence, removal of property, or other factors causing a decline in value." (R&T Section 51b) Pursuant to these provisions, assessed values are required to be the lower of FBYV or Full Value.

Section 51e of the Revenue and Taxation Code (R&T) states that "Nothing in this section shall be construed to require the assessor to make an annual reappraisal of all assessable property." In the course of day to day operations, the assessor may discover situations that warrant special reviews and that could lead to reductions.
In most cases, however, factors believed to be damaging to value are commonly brought to the attention of the assessor by knowledgeable property owners.

Once a reduction is made, this same R&T Section requires the assessor to perform annual reviews of affected properties to ascertain that the assessed value is still the lower of FBYV (Prop 13) or Full Value (Proposition 8).
In order to do this, the original FBYV must be computed forward. When a recovering market indicates that the
force of the factor causing a loss has dissipated; the assessor will enroll a higher value not to exceed the FBYV
and annual reviews will be discontinued. (The change from year to year is not limited to 2%, since Proposition 8 procedures govern.)

 

Supplemental Assessments

In 1983, state law was changed to require taxes to be adjusted as of the exact day of the change in ownership. The Assessor is required to reappraise property immediately upon change of ownership or completion of new construction. The Assessor will issue a notice of supplemental assessment which reflects the difference between the prior and the new assessed values. (The tax liability is prorated based on the number of months remaining in the fiscal year, ending each June 30. Special tax bills are issued in addition to the regular tax bill. Information regarding due dates and amounts can be obtained from the Treasurer-Tax Collector office at (209) 754-6350.
 

Business Personal Property

Filing Business Property Statements can be accessed at https://www.calbpsfile.org/sdr/default.aspx 

For information on current BINs (business identification number) please call our office at (209) 754-6356

PERSONAL PROPERTY: (i.e. boats, aircraft and business property)
 
Personal property that is subject to assessment includes business property, boats, and aircraft. It is valued every year so that we can account for depreciation.
 
Business owners can report their BUSINESS PROPERTY to the Assessor on a form that was created by the State Board of Equalization for reporting purposes. The form has room to identify the cost of business property such as office furniture, trade equipment, supplies, fixtures and computers, etc. Business inventory is exempt from taxation.
 
The value of BOATSand AIRCRAFT is estimated by reviewing the purchase price as well as the published sales lists of comparable boats and aircraft. These properties are assessed by the county in which the boat or aircraft was located on the January 1 lien date.
 
For additional information, please call this office at (209) 754-6356.
 
The Business Property Statement is available on our website. You can print, complete and mail the statement to the address on the form (or bring it to the Assessor’s Office). Alternately, business owners or their accountants can complete the form on the SDR website.
 
In order to complete the form electronically, you will need a Business Identification Number (BIN) in addition to your assessment number. You can obtain a BIN by e-mailing a request to Appraiser Analyst Your BIN will be supplied by e-mail.

Forms

 

Possessory Interest

What is a Possessory Interest? A taxable possessory interest (PI) is created when a private party is granted
the exclusive use of real property owned by a non-taxable entity. The key criterion that must exist to have a taxable possessory interest is the possession or right to possession of real property owned by a non-taxable
entity. The possession must be independent, durable, and exclusive of the rights held by others. It must also provide a private benefit to the possessor above that which is granted to the general public.

Examples of Possessory Interests
Taxable PIs can be created in virtually any use of government owned real property. They are typically created
when private individuals, companies or corporations lease, rent or use federal, state or local government owned facilities and/or land for their own benefit.

   Examples of possessory interests include such things as:

  • Boat slips on public lakes, ocean marinas or rivers.
  • A mini-storage facility built under a freeway.
  • A private walkway built above a city street.
  • An airplane tie-down at a county airport.
  • Cattle grazing rights on Federal or State land.
  • Private companies leasing government buildings.
  • Tenants, concessionaires and exhibitors at convention centers and fair grounds at any time during the year.
  • Cabins on US Forest owned lands.
  • Public golf courses leased to private operators.
  • Ski resorts on public lands.
  • Airline terminal and cargo space at large metropolitan airports.
  • Container operators at major harbors.
  • The right to grow crops on land owned by a community college district.
  • Cable television right-of-way easements.
  • The right to have food vending machines located in a government building.
  • The right to operate a rental car agency at an airport.

The variety and form of such interests vary widely and evolve continually, and those listed above represent only
a portion of the possible possessory interests that may be found.

Discovery of Taxable Possessory Interests
The Assessor, by law, must search out and value all taxable property in the county as of the lien date, January 1, each year. This includes all taxable possessory interests. Annually, pursuant to Revenue and Taxation Code
Section 480.6, Assessor’s staff can request every governmental agency in the county to provide various items of information such as leases and other agreements that are related to the real property they own. This information includes the name, mailing address, situs address, lease amendments, assignments, new construction, etc. for
each property. The Assessor analyzes this information when making the possessory interest assessments. It is important that the lessees keep this information current with their government landlords and that the agencies cooperate fully with the Assessor so that accurate assessments can be made by the county.

Property taxes
California law exempts public agencies from paying taxes on the property they own, thus the lessee, who
acquires the possessory interest, must pay the property taxes. The taxation of these interests is rooted in
historical precedent. The California legislature first authorized the valuation of possessory interests for property
tax
purposes in 1859.

Those who receive possessory interest assessments are often puzzled by the seemingly unfairness of paying
rent to a government entity while being asked to pay property taxes as well. However, government entities do not have to pay property tax and thus their rent charges do not include an increment to recover such taxes (similar to
a triple net lease). At the same time, the private possessor still receives the services and benefits (fire and police protection, schools and local government) that other similar taxable properties enjoy. The PI tax helps to pay the fair share of those costs.

The lien date for real property taxes is January 1 each year. The person in possession of the property on the lien date is liable for the entire subsequent fiscal year's taxes. Unfortunately, no provision is made for the Assessor to prorate the taxes if the possessory interest is terminated after the lien date.

Valuing Taxable Possessory Interests
Base year values are established for taxable possessory interests upon change in ownership or completion of new construction under the guidelines of Proposition 13. A change in ownership occurs when a possessory interest is created, assigned, or upon expiration of the reasonably anticipated term of possession used by the Assessor.

The valuation of PIs differs significantly from other forms of property tax appraisal, as it is the appraiser's job to value only those rights held by the private possessor. The appraiser must not include the value of any rights retained by the public owner or any rights that will revert back to the public owner (the "reversionary interest”)
at the end of a reasonable term of possession. Taxable PI values differ from real property unencumbered fee
values in two ways:

  1. The Assessor must value only the legally permitted possessory interest use under the agreement, which
    may not be the highest and best use of the property.
  2. The Assessor must not include the value of the lessor's retained rights in the property; the government's interest is exempt.

As a result, PI assessments are normally and often significantly less than fee simple assessments of similar, privately-owned property.

Once a base year value has been determined, it is protected by Proposition 13. It will only increase by a
maximum of 2% per year, unless there is a change in ownership, new construction, or the property suffers a decline in
value. A decline in value is usually measured by a decline in economic rent or a decrease in the anticipated term
of possession.

Approaches to value
If a new base year value is necessary for a PI property, one or more of the income, comparative sales
(or market), or cost approaches are used with certain modifications. These are more fully explained in Property
Tax Rule 25. The type of interest being valued and the estimated reasonable term of possession will dictate which of the three valuation approaches to use.

   The Income Approach
The income approach is the most commonly relied upon method for valuing possessory interests. Capitalizing the economic net income for the term of possession allows the Assessor to measure only those rights "possessed" by the tenant and exclude any non-taxable rights retained by the governmental landlord.

  1. Economic rent
  2. A reasonable term of possession over which to capitalize the rent
  3. A capitalization rate

This information is typically obtained by review of lease agreements and reports by the governmental landlord.

   Comparative Sales Approach
In this approach to value, the sale of the subject property, or sales of other similar possessory interests
reasonably close to the effective date of value, are used to determine the PI value. Contract rent paid on the property, and any other obligations assumed by the buyer, must be valued at its present worth and added to the sales price.

   Cost Approach
In a typical cost approach, the depreciated value of improvements is added to the estimated value of the land.
For possessory interest valuations, the important distinction is that the reversionary value [the present worth
of the value of the land and improvements at the termination of possession] is subtracted from the estimated land and improvement values. The resulting land and improvement values are then added together to arrive at a total value for the PI.

 

Appraisal of Other Types of Properties

MANUFACTURED HOMES Manufactured homes sold new on or after July 1, 1980 are subject to local property taxation. Most manufactured homes sold prior to July 1, 1980 are not taxed by the County but are registered with and pay annual fees to the State Department of Housing and Community Development (HCD). Any manufactured home placed on a permanent foundation is subject
to local property taxation. Manufactured home owners subject to local property taxes may be eligible for the Homeowner's Exemption and Senior Citizen Assistance.

RESTRICTED PROPERTY:

  •  AGRICULTURAL PRESERVES Qualifying property may, pursuant to the California Land Conservation Act of 1965 (Williamson Act), be placed in an Agricultural Preserve (AP) status. To do so, owners contract with Calaveras County to restrict land use. Land so zoned is valued annually by means of a special procedure. Values assessed must be the lesser of the special AP Value, Full Value, or Factored Base Year Value (FBYV). Homesites and other improvements judged to be compatible with AP Restrictions are valued per the provisions of Proposition 13. Contracts are automatically renewed every year until a Non-Renewal Agreement is approved by the County. If a contract is in Non-Renewal Status, the assessed value is adjusted each year until it is the lesser of FBYV or Full Value. An alternate procedure allows immediate cancellation. This may involve payment by the owner of a cancellation fee of 12.5% of the current
    Full Value (Gov Code 51283). .

     
  • TIMBER PRESERVES Also referred to as TPZ, owners of timber producing land may contract with the County to restrict the land use. Land is valued by means of a schedule published by the State Department
    of Conservation. That value is related to the capability of the land to produce timber.

Inquiries should be directed to the Agriculture Department at (209) 754-6504 or the Planning Department
at (209) 754-6394.

 

Taxpayer Remedies

INFORMAL REVIEWS Differences in opinion between the Taxpayer and the Assessor may arise when a notice of a new assessed value is issued. It is very important to contact the Assessor as soon as such a situation develops. We welcome the opportunity to review the basis for the new values and to review any information you may have relating to the value of your property.

ASSESSMENT APPEALS Unresolved differences between the Assessor and the Taxpayer are handled by the Calaveras County Board of Supervisors; who act as the Local Board of Equalization. The Clerk of the Board will accept your Request for Changed Assessment if filed between July 2 and November 30. Appeals of Supplemental Assessments must be filed with the Clerk of the Board within 60 days of the supplemental notice date. You will receive a notice of your hearing 45 days before the hearing has been scheduled. At the hearing, the Local Board of Equalization will consider all evidence presented by the Taxpayer or a designated agent and by the Assessor. The Board will then determine the value of the property in question. The forms for an appeal are obtained from the Clerk of the Board at (209) 754-6370.

 

Tax Bills

UNDERSTANDING PROPERTY TAXES
Although property taxes are governed by the California State Revenue and Taxation Code; administration of tax
law is the responsibility of the Counties. The majority of this task is accomplished by three Calaveras County departments: 1. Assessor 2. Auditor-Controller and 3. Treasurer-Tax Collector. In a close working relationship, each department performs specialized duties:

  • The Assessor produces the Assessment Roll. The Assessment Roll is a list of all taxable properties in the County, the taxable value of each property, the locations and names of the owners. When completed each year, the Assessment Roll is delivered to the Auditor-Controller. .
     
  • The Auditor-Controller applies the appropriate tax rates, calculates the tax amounts and adds amounts
    for any applicable special assessments. The Assessment Roll is now ready for the Treasurer-Tax Collector. .

     
  • The Treasurer-Tax Collector prints and mails the tax bill for each parcel. Tax amounts are based on the calculations already performed by the Auditor-Controller. Tax bills are mailed in October and are payable
    in two installments; the first is due November 1st, is delinquent December 10th at 5:00 P.M. The second is due on February 1st and is delinquent April 10th at 5:00P.M.

Although the Assessor welcomes inquiries about the Assessment Roll, many taxpayers call the Assessor regarding details of the tax bills. You may want to contact the department responsible for the item you are questioning.

 

Terms You Should Know

Lien Date: The time when taxes for any fiscal year become a lien on property. The assessed value of property
as of 12:01AM on the lien date (January 1) governs the tax status for the fiscal year beginning the following
July 1.

Assessor’s Parcel Number (APN): A numeric system for referring to each parcel of property within the county. (Composed of map books, pages, blocks and parcels)

Assessment Roll: The official list of all assessable property and values in the County (The Tax Roll). Preparation
of this list is the principal duty of the assessor.

Real Property: Land and improvements. (Rule 121)

Personal Property: All property subject to taxation that is not land or improvements. (ex. Boats, Aircraft and Business Property)

Improvements: Buildings, structures, fixtures, pools, fences, etc., erected upon or affixed to land. Improvements may include trees and vines.

Value: The terms "full value", "full cash value", "cash value", "actual value" and "fair market value" mean the
price at which a property, if exposed for sale in the open market with a reasonable time for the seller to find a
purchaser, would transfer for cash or its equivalent under prevailing market conditions between parties who have knowledge of the uses to which the property may be put, both seeking to maximize their gains and neither being
in apposition to take advantage of the exigencies of the other. (Rule 2)

Base Year Value: Article XIII A of the California Constitution set the 1975 assessed value as the original base year value. Thereafter, a new base year value is established whenever a property is purchased, newly constructed or changes ownership.

Factored Base Year Value (FBYV): Property base year value is adjusted no more than 2%annually for inflation.

Escape Assessment: As assessment to increase the roll value for the previous year when a property is under assessed or a missed assessment.

Secured Property: Property on which the property taxes are a lien against real estate.

Unsecured Property: Property on which property taxes are NOT a lien against real estate(office furniture, machinery, equipment, boats, airplanes, etc).

Appeals: Property owners who do not agree with their assessed value or do not understand how it was
determined are encouraged to call the Assessor’s Office to discuss their questions. If an owner still disagrees with the Assessor’s conclusion, they have the right to file an appeal.

Appeals can be filed with the Clerk of the Board by calling (209) 745-6371 and requesting an application. There are very strict deadlines for appeals that cannot be waived.

 

Important Dates for Property Owners

  • January 1: Lien date. The date taxes become a lien on the property for the following fiscal year (July 1 - June 30).
        
  • February 15: Deadline to file exemption claims for cemetery, college, welfare, veteran’s, disabled veteran's, homeowner's, church, religious and other miscellaneous exemptions.
         
  • April 10: Last day to pay second installment of secured property taxes without penalty.
     
  • May 7: Due date for filing Business Personal Property Statements.
         
  • July 1: Assessment Roll is delivered by the Assessor to the Auditor-Controller.
         
  • July 2 - November 30: Period for filing application for changed assessment appeal with the Clerk of the Board.
         
  • August 31: Last day to pay unsecured taxes without penalty.
         
  • November 1: Tax Collector mails tax bills.
         
  • December 10: Last day to pay first installment of secured property taxes and for late filed homeowner’s and disabled veteran's exemptions.

Senior Citizen Assistance

PROPERTY TAX POSTPONEMENT

This is a program that is administered by the State Controller's Office. It allows eligible homeowners to postpone payment of part or all of the property taxes on their residence. The Assessor has copies of the APPLICATION AND INSTRUCTION BOOKLET which are available at the public counter. We will be happy to mail a copy to you upon request - please call us at (209) 754-6356.

PROPOSITION 60 Section 69.5 was added to the Revenue and Taxation Code when Proposition 60 was approved by the voters in 1986. This section provides for transfers of base year values from one residence to another within Calaveras County; in effect allowing certain taxpayers to move without being affected by higher property tax payments that could otherwise result from moving from one residence to another.

 

  • Who qualifies? Persons who are over 55 years of age at the time of the sale of the original property may qualify. If married, only one spouse need be at least 55 but that person must reside in the original
    property. The same is true of co-owners.
  • What property qualifies?
    • The original property has to be eligible for the Homeowner's Exemption
    • The replacement dwelling must be of equal-or-lesser value and located within Calaveras County
    • The replacement dwelling must be purchased or newly constructed within two years of the sale of
      the original property
    • The replacement dwelling includes but is not limited to a single family residence, a condominium
      unit, a co-operative housing unit, a community apartment unit, a planned development project unit, a manufactured home, and other living units that are a portion of a larger structure, all as
      prescribed
      in R&T Section 69.5

A claim for Proposition 60 (available at the public counter) must be filed within three years of the date a replacement dwelling is purchased or new construction is completed. This is one time only relief. A replacement property obtained by gift does not qualify.


Adobe Logo 60-AH Persons Over 55 Transfer - Base Year Value
 

PROPOSITION 90 is a local option arrangement by which base year values may be transferred from one county
to another within California. Although Proposition 90 was adopted by a limited number of counties in California, Calaveras County has not done so and does not accept base year values from other counties.

 

Exclusions and Exemptions

BUILDERS' EXCLUSION: Completed new construction may be excluded from supplemental assessment under certain circumstances. The property must be intended for sale and builder must file the necessary form with the Assessor Office prior to or within 30 days of the start of construction. If the exclusion is approved, an appraisal is not made until the next lien date (January 1) or until the property is sold, leased or occupied by the builder. For more information or to obtain an application, please call the Assessor Office.


Adobe PDF Icon Construction Supplement Exclusion Form

Adobe PDF Icon 63 Disabled Person Claim for Exclusion of New Construction

 

CHANGES IN OWNERSHIP EXCLUSIONS INCLUDE:

  • The transfer of property between husband and wife.
  • The transfer of the principal place of residence between parents and their children (Proposition 58).


    Adobe PDF Icon 58-AH Parent-Child Exclusion (Prop. 58)

 

  • The transfer of any other real property, between parents and their children, with a value of up to
    One Million Dollars.
  • Transfers per above between parents and their grandchildren, provided that the children are both
    deceased at the time of transfer (Proposition 193).


    Adobe PDF Icon 58-G Grandparent-Grandchild (Prop. 193)

 

In all cases, an application must be filed with the Assessor that states the qualifying relationships. If such application is not filed, a reappraisal will occur and new values will be enrolled. (There is a provision allowing a delayed filing of up to 36 months after the transfer occurs.)

HOMEOWNER'S EXEMPTION: A property owner may claim a Homeowner's exemption in California on a
residence that is both owned and occupied at 12:01 AM on January 1, or files within 30 days of a change in ownership or a supplemental assessment is levied for new construction. This exemption reduces your
assessed value by as much as $7,000 and reduces your tax bill by as much as $70.

The homeowner is responsible for applying for this exemption. To receive the full exemption, you must file
with the Assessor Office between January 1 and February 15 or within 30 days of a Notice of Supplemental Assessment. (A late filing is accepted from February 16 to December 10 for 80 percent of the exemption.)
Your exemption automatically continues each year as long as you continue to own and occupy the property
as your primary residence. The homeowner is required to terminate the exemption when eligibility ends.

 

Adobe PDF Icon  266 Claim for Homeowners' Property Tax Exemption

 

TOTALLY DISABLED VETERANS: If you are a veteran who is rated 100 percent disabled, blind or is a
paraplegic due to a service-connected disability while in the armed forces (or if you are the unmarried widow of such a veteran); you may be eligible for an exemption of up to $150,000 of the assessed value of your owner occupied home.

NOTE: A property owner may NOT have both a Homeowner's and a Veteran's exemption on the same property. Applications and additional information may be obtained at the Assessor Office.

INSTITUTIONAL EXEMPTIONS: Property used exclusively for a church, a non-profit school, cemetery, museum, or library may qualify for an exemption. Properties owned and used exclusively by nonprofit religious, charitable, scientific or hospital corporations may be eligible. Please call this office at 209.754.6356.

DISASTER RELIEF: If a major calamity such as fire or flooding damages or destroys your property, you may be eligible for property tax relief. In such cases, the Assessor will immediately reappraise the property to reflect its damaged condition. When it is rebuilt in a like or similar manner, the property will retain its prior value for tax purposes. To qualify for property tax relief, you must file a Calamity Claim with the Assessor within 12 months
from the date of damage or destruction. The loss estimate must be at least $10,000 of current market value to qualify the property for this relief.


Adobe PDF Icon  Disaster Relief (Calamity Form)

 

NOTE: Disasters usually involve other public agencies that may provide low cost financing for repairs or some
other services. These agencies, including other county offices, may notify the assessor of damages but if there
are any questions about disaster relief and assessed values, please call this office immediately at 209.754.6356.

 

Address Change Requests