Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) The provisions of this rule apply to the
valuation of the real property, personal property, and fixtures used for the
refining of petroleum.
(b) General.
(1) The unique nature of property used for
the refining of petroleum requires the application of specialized appraisal
techniques designed to satisfy the requirements of article XIII, section
1, and article XIII A, section
2, of the California Constitution.
To this end, petroleum refineries and other real and personal property
associated therewith shall be valued pursuant to the principles and procedures
set forth in this section.
(2)
Notwithstanding any other provision in this section, any appropriate valuation
method described in section
of title
183 of title 18 of this code may be applied
in the event of a change in ownership in a petroleum refining
property.
(c)
Definitions. For the purposes of this section:
(1) "Petroleum refining property" means any
industrial plant, including real property, personal property, and fixtures,
used for the refining of petroleum, as identified in Standard Industrial
Classification (SIC) System Codes 2911 and 2992, or North American Industry
Classification System (NAICS) Codes 32411 and 324191.
(2) "Appraisal unit" consists of the real and
personal property that persons in the marketplace commonly buy and sell as a
unit.
(d) Declines in
Value. For the purposes of this section:
(1)
Declines in value of petroleum refining properties will be determined by
comparing the current lien date full value of the appraisal unit to the indexed
base year full value of the same unit.
(2) The land, improvements, and fixtures and
other machinery and equipment classified as improvements for a petroleum
refining property are rebuttably presumed to constitute a single appraisal
unit, except when measuring declines in value caused by disaster, in which case
land shall constitute a separate unit.
(3) In rebutting this presumption, the
assessor may consider evidence that:
(A) The
land and improvements including fixtures and other machinery and equipment
classified as improvements are not under common ownership or control and do not
typically transfer in the marketplace as one economic unit; or,
(B) When the fixtures and other machinery and
equipment classified as improvements are not functionally and physically
integrated with the realty and do not operate together as one economic
unit.
1. New
section filed 7-27-2015; operative 10-1-2015 (Register 2015, No. 31). For prior
history, see Register 2013, No. 44.
Note: Authority cited: Section
15606(c),
Government Code. Reference: Article XIII, Section
1, and Article XIII A, Section
2, California Constitution;
Sections
51
and
110.1,
Revenue and Taxation Code; and Western States Petroleum Association v. Board of
Equalization (2013) 57 Cal.4th 401.
