Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Definitions.
For purposes of this rule:
(1) "Assessed
value" is defined in subdivision (a) of section
135
of the Revenue and Taxation Code.
(2) "Improvements" are defined in rule
122.
(3) "Land" is defined in rule
121.
(4) A "lease for agricultural
purposes" is a lease for the purpose of the production or husbandry of plants
or animals, including gardening, horticulture, fruit growing, and the storage
and marketing of agricultural products.
(5) "Other taxable improvements" are
improvements owned by a local government outside of its boundaries that are
taxable for property tax purposes pursuant to section 11(a), excluding taxable
replacement improvements.
(6) "Real
property" is the appraisal unit of real property, as defined in section
104
of the Revenue and Taxation Code, that persons in the marketplace commonly buy
and sell as a unit or that is normally valued separately.
(7) "Section 11" means section 11 of Article
XIII of the California Constitution.
(8) The "section 11 taxable possessory
interest limitation amount" means the fair market value of the taxable
government-owned real property on the lien date less the section 11 value of
the taxable government-owned real property on the lien date.
(9) The "section 11 value of taxable
government-owned real property" means the sum of:
(i) the section 11 assessment amount for the
taxable lands included in the real property on the lien date, computed pursuant
to subdivisions (b) and (c) of section 11;
(ii) the section 11 assessment amount for any
taxable replacement improvements included in the real property on the lien date
computed pursuant to the provisions of subdivision (d) of section 11;
and
(iii) the fair market value of
other taxable improvements included in the real property on the lien date, if
any.
(10) "Taxable
government-owned real property" is real property owned by a local government
outside of its boundaries that is taxable for property tax purposes pursuant to
section 11(a).
(11) "Taxable lands"
are lands owned by a local government outside of its boundaries that are
taxable for property tax purposes pursuant to section 11(a).
(12) "Taxable possessory interest" is defined
in rule 20.
(13) "Taxable
replacement improvements" are improvements owned by a local government outside
of its boundaries that are taxable for property tax purposes pursuant to
section 11(a) because they were constructed by the local government to replace
improvements that were taxable when acquired.
(14) The "total assessed value of all taxable
possessory interests" means the aggregate assessed values of all taxable
possessory interests in an appraisal unit of taxable government-owned real
property on the lien date.
(b) Taxable possessory interests in taxable
government-owned real property.
Except as set forth below in subsection (c) of this
regulation, taxable possessory interests in taxable government-owned real
property, excluding those created as a result of the possessor having a lease
for agricultural purposes, shall be assessed and taxed for purposes of property
taxation in the same manner as other taxable possessory
interests.
(c) Limitation on
the assessment of taxable possessory interests in taxable government-owned real
property.
On each lien date, the total assessed value of all taxable
possessory interests in an appraisal unit of taxable government-owned real
property shall be determined. If the total assessed value of all taxable
possessory interests on the lien date exceeds the section 11 taxable possessory
interest limitation amount on the lien date, then the assessed values of the
taxable possessory interests shall be reduced as follows:
(i) if there is only one taxable possessory
interest in the appraisal unit of taxable government-owned real property on the
lien date, then the assessed value of that taxable possessory interest shall be
reduced so that it does not exceed the section 11 taxable possessory interest
limitation amount; or
(ii) if there
is more than one taxable possessory interest in the appraisal unit of taxable
government-owned real property on the lien date, then the assessed value of
each such taxable possessory interest shall be ratably reduced in the
proportion that it bears to the total assessed value of all taxable possessory
interests until the total assessed value of all taxable possessory interests no
longer exceeds the section 11 taxable possessory interest limitation
amount.
1. New section
filed 1-10-2002; operative 2-9-2002 (Register 2002, No.
2).
Note: Authority cited: Section
15606(c),
Government Code. Reference: Article XIII, Section 11, California
Constitution.
