California State Board of Equalization, Available Publication.
An overview of California Property Tax, dated August 2009
California Property Tax provides an overview of property tax assessment in California. It is designed to give readers a general understanding of California’s property tax system. The publication begins with a brief history of Proposition 13, which since 1978 has been the foundation of California’s property tax system. It then discusses the roles of key players in property tax assessment—California voters, the Legislature, the State Board of Equalization, and county assessors. It explains which types of property are subject to taxation and which are exempt. It addresses the issue of where property should be assessed. It discusses the annual process of preparing the property tax rolls, the procedure for challenging an assessment, and the process for collecting property taxes. Finally, it covers the yield tax on timber at the time of its harvest.
Although this publication is periodically updated, the laws and rules concerning property tax assessment are continually modified. Therefore, we caution you to consult appropriate sections of the Revenue and Taxation Code and related codes and property tax regulations in order to have the most current information.
Real Property Appraisal
Real Property consists of land and improvements permanently affixed to land. Buildings and other structures, wells, septic, roads, orchards, vineyards and certain machinery or equipment affixed to land, are classified as improvements.
Real Property consists of land and improvements permanently affixed to land. Buildings and other structures, wells, septic, roads, orchards, vineyards and certain machinery or equipment affixed to land, are classified as improvements.
Article XIII-A of the California Constitution (Proposition 13) requires the Assessor to reappraise all property at its full market value when any of the following occurs:
The reappraisal of property acquired by inheritance from an estate or living trust occurs as of the date of the death beneficiary. An assessment will be made in the name of the estate even if the property is sold rather than distributed to the heirs.
As long as there is no new construction or change in title, the base value is not increased more than 2% annually, regardless of the rate of inflation.
Agricultural Preserves
Property owners who sign a contract with the County, under the Williamson Act, restricting the use of their agriculture land to farming for a 10 year period are assessed annually using a legislated form of income capitalization. The preferential value is generally lower than it would be if the land were not restricted.
Homesites, structures, and other non-living improvements are assessed on the same basis as real property listed above.
For additional Williamson Act information, see the California State Department of Conservation web site (www.consrv.ca.gov)
Mobile Homes
All new mobile homes /manufactured home (hereafter referred to as MH) purchased after June 30, 1980 are subject to local property taxes. Those purchased prior to June 30, 1980 may either be licensed with the department of Housing and Community Development or on the local property tax rolls. Those on permanent foundations are considered real property. MH improvements (decks, awnings, etc.) are assessed as any other real property improvement. The California Department of Housing and Community Development issues titles to MH not on permanent foundations. Please note: As of February 11, 1997 Butte County Ordinance No. 3321 prohibits the installation of any MH older than 1976.
Personal Property Appraisal
Personal property consists of physical property not classified as land or improvements. Boats, aircraft, mobile homes not on a permanent foundation, commercial, industrial and agriculture machinery and equipment, business supplies, etc., are classified as personal property.
Personal property is reappraised annually. Assessments are based on reported acquisition costs which are adjusted each year to reflect the pertinent depreciation to each type of property.
Business owners file an annual Business Property Statement detailing costs and disposals of equipment. Business inventory and licensed vehicles are exempt from taxation.
Auditor-Appraisers audit businesses as required by law and as deemed necessary.
Boats and Airplanes
These are appraised annually at their market value. Information on their location and ownership is obtained from the Department of Motor Vehicles, the U.S. Coast Guard, Federal Aeronautics Administration, and on-site inspections.
Parcel Maps
The Assessor's Office establishes and maintains a set of maps which show every parcel of land in the County. These maps serve as the basis for the assessment of all real property in Butte County and are for tax purposes only. The maps are continuously updated to reflect new boundary lines, subdivisions and surveys per documents recorded in this county. These maps are available for public review and may be purchased at the Assessor's Office.