Property Taxes - 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 the builder must file the necessary form with the Assessor's 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 or until the property is sold, leased or occupied by the builder. For more information or to obtain an application, please contact the Assessor's Office

SECTION 75.12 of the California Revenue and Taxation Code provides that any real property on which new construction is completed and which qualifies for the exclusion under Section 75.12 shall not be added to the supplemental roll until the date that property, in whole or in part of

  • Changes ownership
  • Is rented or leased, or
  • Is occupied or otherwise used by the owner or with the owner's consent, except a model home or other use which is incidental to an offer for a change of ownership, whichever comes first. 

Requirements

An Assessors Exclusion Application Form(PDF, 191KB) must be filed with the Assessor prior to or within 30 days from the commencement of construction. Construction has started if any physical activity on the property has resulted in visible changes that are recognized as the initial steps for construction. (Activities include clearing and grading land, excavation, layout of foundations, installation of temporary structures, and demolition of existing structures or fixtures.)

This exclusion applies only if the owner notifies the assessor in writing prior to, or within 30 days of the commencement of construction that he or she offers or intends to offer that property for sale or other change of ownership, and does not intend to rent, lease, occupy or otherwise use that property, except model homes or other use as is incidental to an offer for a change of ownership, and the owner requests the application of this section.

The owner of any real property granted this exclusion shall notify the assessor within 45 days of the earliest date that any of the following occurs:

  • The property changes ownership subject to an unrecorded Contract of Sale
  • The property is rented or leased
  • The property is occupied and the occupancy of the property is other than as a model home or incidental to an offer for a change of ownership. 

The failure to timely notify the assessor may result in a penalty of one hundred dollars ($100) or 10% of the taxes applicable to the new base year value, whichever is greater, not to exceed two thousand five hundred dollars ($2,500).

HOMEOWNERS EXEMPTION

A property owner may claim a Homeowner's exemption in California on a residence that is both owned and occupied at 12:01 a.m. on January 1; or files within 30 days of a change in ownership or new construction for which a supplemental assessment is levied. The exemption reduces your assessed value by $7,000 and reduces the tax bill by at least $70. It is the homeowner's responsibility to apply for the exemption. To receive the full exemption, you must file with the Assessor's 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. It is also the homeowner's responsibility to terminate the exemption when no longer eligible.

TOTALLY DISABLED VETERANS EXEMPTION

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

VETERANS EXEMPTION

The filing period for Veteran's Exemption is from January 1 through February 15, or within 30 days of a Notice of Supplemental Assessment for the full exemption. Late filing is from February 16 to December 1 for 80 percent of the exemption. Unlike the Homeowners exemption the Veteran's exemption must be filed annually, and the Veteran's assets cannot exceed $10,000.

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's Office.

 

 

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