Property Valuation “ASSESSMENT”

REAL OR SECURED PROPERTY ASSESSMENTS

The California Constitution requires that all property be taxed, unless otherwise exempted under the California Constitution or United States Constitution. Article XIII-A of the California Constitution requires that real property be reappraised only when such property undergoes a change in ownership or has new construction (per Proposition 13).

The assessment roll, and tax bills, show land values and improvement values. "Improvements" include buildings or anything of a structural nature (such as swimming pools, paving, etc.). When you have an "improvement" value, it doesn't usually mean that you have recently "improved" your property.

Proposition 13

Proposition 13, passed by the voters in June 1978, substantially changed the taxation of real property in California. As a result of the Constitutional Amendment:

• The general tax levy for all agencies cannot exceed 1% of the property's assessed value, except for additional taxes for bonded indebtedness. In addition, agencies may levy direct assessment taxes to pay for services such as lighting maintenance, weed abatement, etc. The average tax rate is approximately 1.25%.
• Real property is reappraised only when:
1. A change in ownership occurs; or
2. New construction is completed; or
3. New construction is partially completed on the lien date (January 1); or
4. A decline in value (see Proposition 8).*

*Except for these four instances, real property assessments cannot be increased by more than 2% annually, regardless of the rate of inflation.

CHANGE IN OWNERSHIP RE-APPRAISALS:

When a transfer occurs, the Assessor receives a copy of the deed and determines if a re-appraisal is required under State law. If required, an appraisal is made to determine the new market value of the property as of the date of transfer. The actual sales price is a strong indicator of value, but it is not the only factor used in establishing the assessed market value. Sales of comparable properties are also indicators of value that the Assessor relies on.

The date of re-appraisal is generally the recording date of the deed that transfers ownership. However, the re-appraisal of property acquired by inheritance from an estate or living trust occurs as of the date of death of the former owner, not as of the date of distribution to the beneficiary.

The property owner is notified of the new assessment and has the right to appeal this value. Property owners who feel that their new assessed values are incorrect should contact the Assessor to discuss the issue prior to filing a formal assessment appeal.

EXCLUSIONS FROM RE-APPRAISAL: 

There are several exclusions available for certain qualified situations. Please see the section titled “Tax Relief, Exclusions, Exemptions, Reductions”.

PRELIMINARY CHANGE OF OWNERSHIP REPORT:

State law requires the transferee/buyer of a property to file a "Preliminary Change of Ownership Report" with the Imperial County Recorder when recording certain documents. A $20 fee will be charged if the completed form is not filed at the time of recording. If the form is not filed, the Assessor is then required to mail the property owner a further request for the same information. This form is used to assist in the appraisal of property and is not open for public inspection.

The "Preliminary Change of Ownership Report" form may be obtained via our Assessor's Forms section on the main page of this website.

NEW CONSTRUCTION RE-APPRAISAL: 

Copies of all building permits are forwarded to the Assessor by all permitting agencies in the County. Normal repair and maintenance work generally does not create a re-appraisal. In appraising new construction, the market value of the new construction is determined and is then added to the existing value of the property. The value of the existing property increases only by the value of the new construction.

The property owner is notified of the value of the new construction and has the right to appeal this value. Property owners who feel that their new assessed values are incorrect should contact the Assessor to discuss the issue prior to filing a formal assessment appeal.

Some types of new construction may be excluded from reappraisal:

• disaster repairs
• retrofitting of un-reinforced masonry buildings
• the addition of fire sprinklers
• certain types of new construction for the residence of a disabled person

 Owners who feel that their new construction may fall into these categories should contact our office.

SUPPLEMENTAL ASSESSMENTS SB 813

State law requires the Assessor to reappraise property upon change in ownership or completion of new construction. The supplemental assessment reflects the difference between the new value and the old value. The Auditor-Controller calculates the supplemental property tax, and prorates it, based upon the number of months remaining in the current fiscal year. The fiscal year runs from July 1 through June 30.

A change in ownership or new construction completion which occurs between January 1 and May 31 results in two supplemental assessments and two supplemental tax bills. The first supplemental bill is for the remainder of the current fiscal year. The second supplemental bill is for the forthcoming fiscal year.

Notices of Assessed Value Change are mailed to property owners before supplemental tax bills are issued. Prior to the issuance of the supplemental bill, notification of the increase or decrease in value is sent to the owner at the address of record. The owner has the right to appeal the supplemental value within 60 days of the date of the notice.

Remember that supplemental tax bills are in addition to the regular annual tax bills. Supplemental bills go directly to the property owner, and not to an impound account - where one might exist.

PROPOSITION 8 (DECLINE IN VALUE):

Proposition 8 allows the Assessor to review both the factored base-year value and the current market value of a property as of January 1 of each year and enroll the lesser value. When the current market value replaces the higher Proposition 13 value, the lower value is commonly referred to as a "Prop 8 Value". In no circumstance can the Assessor value a property higher than its Proposition 13 factored base-year value.

Although the annual increase for Proposition 13 values is limited to no more than 2%, the same restriction does not apply to values adjusted under Proposition 8. Actual market value must be enrolled as a Proposition 8 value and any subsequent increase or decrease in market value is enrolled regardless of its percentage change. However, when the current market value of a Proposition 8 property exceeds its factored Proposition 13 base-year value, the Assessor simply re-instates the factored Proposition 13 value.

Property owners who feel that their assessed value exceeds current market value should contact our office and request a Proposition 8 review. The last day to request a Proposition 8 review of the assessment on the current tax bill is October 30. Requests made after October 30 will apply to the upcoming tax year. Owners may also elect to file a formal assessment appeal during the open filing period.

For more detailed information, please see the section “Decline in Value Prop 8”

ASSESSMENT APPEALS:

If a property owner has discussed his assessment with our office and still feels that his property is over-assessed, he or she may file a formal assessment appeal. Appeals on regular assessments must be filed between July 2 and November 30. Appeals on supplemental assessments must be filed within 60 days of the date of the Supplemental Assessment Notice.

The County Board of Supervisors in Imperial County is also the County Board of Equalization, which formally hears and rules on assessment appeals. Some counties use a device called an Assessment Appeals Board, which is made up of private citizens appointed by the County Board of Supervisors, but not in Imperial County. The County Board of Equalization considers all evidence presented by the property owner and the Assessor at a formal hearing. The County Board then determines the value of the property in question. If the Board orders a decline in value, this reduction applies only to the tax bill for the year in which the application was filed. Other years and future years require additional filings.

All appeals must be filed with the Clerk of the Board of Supervisors at the County Administration Building, 940 W. Main St., Suite 209, El Centro, California 92243.

MANUFACTURED HOMES:

All manufactured homes purchased new after June 30, 1980, and those on permanent foundations, are subject to property taxes. Manufactured homes built prior to July 1, 1980 can also be subject to property taxes, if the license fees, paid through the State Department of Housing and Community Development, are more than 90 days past due, or have been voluntarily converted to local property taxes. Manufactured homes smaller than 12 feet in width or 40 feet in length (park models, travel trailers), or “commercial coaches” that are leased (large, multi-unit temporary housing for example) are normally licensed, and not subject to local property tax. As with real property, the assessed value of manufactured homes cannot be increased by more than 2% annually, unless there is a change in ownership or completion of new construction.

POSSESSORY INTERESTS:

A taxable possessory interest is created when a private party is granted an exclusive use for private benefit of real property that is owned by a public entity (federal, state, local governments, quasi-public agencies, etc.). Property owned by public entities is generally not subject to property tax with the exception of the interest that a private party has in the tax exempt public entity property is assessable. The Assessor must discover and value all taxable property in the county, including possessory interests, as of the lien date, January 1, each year.

Taxable possessory interests can be created in virtually any use of government-owned real property. Sand and Gravel leases, leases with BLM, USA, IID, BIA and other Cities, Counties, and States. Common examples are campgrounds, forest cabins, ski resorts, airplane hangars and terminals, mining claims, and grazing rights. A taxable possessory interest exists when possession of real property, owned by a non-taxable entity, is found to be independent, durable, and exclusive of the rights held by others. It thus provides a private benefit to the possessor above that which is granted to the general public.

Business, Personal, and Special Property Assessments

The Audit Division is responsible for the discovery and assessment of all taxable business property, Vessels, aircraft, and other special properties within the County of Imperial.

Unlike real property, business property is appraised annually. All business owners must file a property statement each year detailing costs of all supplies, equipment and fixtures at each location. Business inventory is exempt from taxation.

The California Constitution and the Revenue and Taxation Code state that all property is taxable, including business property, unless it is specifically exempt by law. Examples of taxable business property are:

• Building / Fixture / Land Improvements
• Office Furniture and Equipment
• Machinery and Equipment
• Supplies
• Tools
• Computer Hardware and Operating Systems
• Leasehold Improvements
• Property Leased to Others
• Construction in Progress

VESSELS AND AIRPLANES:

Vessels and airplanes are taxable and are subject to annual appraisal. Their value is determined by reviewing the purchase price and sales of comparable vessels and airplanes. 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 and Questionnaires..