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:
- A change in ownership (see exclusions).
- New construction is completed.
- New construction is partially completed on the lien date.
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.
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.
About California Property Tax Assessment
Learn more about California Property Tax in the California State Board of Equalization publication. Although the California Property Tax 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.