ASSESSMENT TERMINOLOGY

Ad Valorem: “according to the Value”. The amount used as the value of a property for tax purposes.

Adjusted Base Value: A property's base value will be adjusted by up to 2% each year by the California Consumer Price Index (CPI).

Appraiser: Assessor's Office employee whose job is to value real property for tax purposes.

Assessment Appeal: A process to have a hearing for a reduced assessment.

Assessor: A person elected by the County voters who is required by State law to annually discover, list and value all taxable property in the County.

Auditor-Appraiser: Assessor's Office employee whose job is to value personal property for tax purposes and conduct business audits.

Base Year: The Assessment year 1975-76 serves as the original base year. Thereafter, any assessment year in which the real property transfers title or has new construction becomes the base year. The date is used to set the market value of the property.

Improvements: Any buildings or structures existing on the land whether new or old. Improvements also include certain commercial and industrial fixtures, fences, swimming pools, decks, etc.

Lien Date: The day when taxes for any fiscal year become a lien on property; and the date on which property is valued for tax purposes. The lien date in California property is 12:01 a.m. on January 1.

Market Value: The current price at which a willing seller and a willing buyer would transfer property, neither being under abnormal pressure. The price of a property would bring when exposed to the market for a reasonable time.

New Construction: The construction of new buildings, an addition to an existing building, or the alteration of existing buildings, if the alteration converts the property to a different use or extends the economic life of the improvement.

Personal Property: Any property other than real estate, including airplanes, boats, and business property such as machinery, equipment, furniture, etc. Business inventory is exempt.                                             

Proposition 8: Passed by California voters in November 1978, Proposition 8 allows for a temporary reduction in the assessed value of real property when there is a decline in market value below the property's indexed base year value.

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

Special Assessment: Direct charges against property which are included in the total amount of your tax bill, but which are not property taxes based on the Assessor's valuation. (e.g. sewer, service charge, bonds, etc.)

State Board of Equalization: A State agency that instructs, advises, and directs Assessors as to their duties under the law.

Supplemental Assessment: An assessment which supplements the regular assessment roll. This applies to the transfer and new construction taking place after a new roll has been closed, a one time assessment for the difference between current assessed value and previous assessed values. It can be a refund or bill for 1 to 17 months.

Tax Base: The total taxable value.

Tax Rate: The maximum ad valorem (on the value) property tax rate is 1% of the net value of property. This tax rate is divided among the county, cities, school, and special districts.

TRA: The tax rate area (TRA) is a specific geographic area all of which is within the jurisdiction of the same combination of local agencies for the current fiscal year. There are over 639 TRAs in Butte County, each one identified by a unique number.

Unsecured Property: Property on which the property taxes are not a lien against the real estate on which they are located, including personal property or improvements located on leased land.