Revenue and Taxation Code

§ 1 This act shall be known as the Revenue and Taxation Code. (Enacted by Stats. 1939, Ch. 154.) § 2 The provisions of this code in so far as they are substantially the same as existing statutory provisions relating to the same subject matter shall be construed as restatements and continuations, and not as new enactments. (Enacted by Stats. 1939, Ch. 154.) § 3 All persons who, at the time this code goes into effect, hold office under any of the acts repealed by this code, which offices are continued by this code, continue to hold them according to their former tenure. (Enacted by Stats. 1939, Ch. 154.) § 4 Any action or proceeding commenced before this code takes effect, or any right accrued, is not affected by this code, but all procedure taken shall conform to the provisions of this code as far as possible. (Enacted by Stats. 1939, Ch. 154.) § 5 Unless the context otherwise requires, the general provisions hereinafter set forth govern the construction of this code. (Enacted by Stats. 1939, Ch. 154.) § 6 Division, part, chapter, article, and section headings do not in any manner affect the scope, meaning, or intent of the provisions of this code. (Enacted by Stats. 1939, Ch. 154.) § 7 Whenever a power is granted to, or a duty imposed on, any person or board by any provision of this code, it may be exercised or performed by any deputy or person authorized by the person or board to whom the power is granted or on whom the duty is imposed, unless it is expressly provided that the power or duty shall be exercised or performed only by the person or board to whom the power is granted or on whom the duty is imposed. (Amended by Stats. 1943, Ch. 874.) § 8 Writing includes any form of recorded message capable of comprehension by ordinary visual means. Whenever any notice, report, petition, permit, statement, or record is required by this code, it shall be made in writing in the English language. (Enacted by Stats. 1939, Ch. 154.) § 9 Whenever any reference is made to any portion of this code or of any other law, the reference applies to all amendments and additions thereto now or hereafter made. (Enacted by Stats. 1939, Ch. 154.) § 10 “Section” means a section of this code unless some other statute is specifically mentioned and “subdivision” means a subdivision of the section in which that term occurs unless some other section is expressly mentioned. (Enacted by Stats. 1939, Ch. 154.) § 11 The present tense includes the past and future tenses; and the future, the present. (Enacted by Stats. 1939, Ch. 154.) § 12 The masculine gender includes the feminine and neuter. (Enacted by Stats. 1939, Ch. 154.) § 12.2 “Spouse” includes “registered domestic partner,” as required by Section 297.5 of the Family Code. (Added by Stats. 2016, Ch. 50, Sec. 94. (SB 1005) Effective January 1, 2017.) § 13 The singular number includes the plural, and the plural the singular. (Enacted by Stats. 1939, Ch. 154.) § 14 “City” includes incorporated city, city and county, municipal corporation, municipality, town, and incorporated town. (Enacted by Stats. 1939, Ch. 154.) § 15 “County” includes city and county. (Enacted by Stats. 1939, Ch. 154.) § 16 “Shall” is mandatory and “may” is permissive. (Enacted by Stats. 1939, Ch. 154.) § 17 “Oath” includes affirmation and written declarations signed under the penalties of perjury. (Amended by Stats. 1957, Ch. 323.) § 18 “Signature” or “subscription” includes mark. Such mark shall be made as required in the Civil Code. (Enacted by Stats. 1939, Ch. 154.) § 19 “Person” includes any person, firm, partnership, general partner of a partnership, limited liability company, registered limited liability partnership, foreign limited liability partnership, association, corporation, company, syndicate, estate, trust, business trust, or organization of any kind. As used in Division 2 (commencing with Section 6001), “person” shall include, in addition to the items of definition contained in the first sentence, trustee, trustee in bankruptcy, receiver, executor, administrator, or assignee. (Amended by Stats. 1995, Ch. 679, Sec. 10. Effective October 10, 1995.) § 20 (a) Except as otherwise provided in subdivisions (b) and (c), and notwithstanding any other law, “board” means the California Department of Tax and Fee Administration. (b) Unless the context requires otherwise, as used in this code or any other code, “board,” with respect to an appeal, means the Office of Tax Appeals if the authority to handle appeals has been transferred from the State Board of Equalization to the Office of Tax Appeals pursuant to Part 9.5 (commencing with Section 15670) of Division 3 of Title 2 of the Government Code. (c) Unless the context requires otherwise, as used in this code or any other code, “board” means the State Board of Equalization where the State Board of Equalization has retained authority pursuant to subdivision (b) or (c) of Section 15600. (d) This section shall become operative on July 1, 2017. (Repealed (in Sec. 14) and added by Stats. 2017, Ch. 16, Sec. 15. (AB 102) Effective June 27, 2017. Section operative July 1, 2017, by its own provisions.) § 20.5 (a) Unless the context requires otherwise, as used in this code or any other code, “board, itself” or “State Board of Equalization meeting as a public body” means the California Department of Tax and Fee Administration for those duties, powers, and responsibilities transferred to the California Department of Tax and Fee Administration pursuant to Section 15570.22 of the Government Code. (b) Unless the context requires otherwise, as used in this code or any other code, “executive director” or “executive officer of the board” means the director of the California Department of Tax and Fee Administration for those duties, powers, and responsibilities transferred to the California Department of Tax and Fee Administration pursuant to Section 15570.22 of the Government Code. (Added by Stats. 2017, Ch. 252, Sec. 16. (AB 131) Effective September 16, 2017.) § 21 “Controller” means the State Controller. (Enacted by Stats. 1939, Ch. 154.) § 22 “Auditor” of a city or county means the chief accounting officer, by whatever title he may be known. (Enacted by Stats. 1939, Ch. 154.) § 23 “Assessee” means the person to whom property or a tax is assessed. (Enacted by Stats. 1939, Ch. 154.) § 24 No act in all the proceedings for raising revenue by taxation is illegal on account of informality or because not completed within the required time. (Enacted by Stats. 1939, Ch. 154.) § 25 Unless expressly otherwise provided, any notice required to be given to any person by any provision of this code may be given in the manner prescribed in the Code of Civil Procedure for service by mail. (Enacted by Stats. 1939, Ch. 154.) § 26 If any provision of this code, or its application to any person or circumstance, is held invalid, the remainder of the code, or the application of the provision to other persons or circumstances, is not affected. (Enacted by Stats. 1939, Ch. 154.) § 27 This code, and any amendment hereto made by any statute enacted at the fifty-third session of the Legislature, takes effect on February 1, 1941. (Enacted by Stats. 1939, Ch. 154.) § 28.5 As used in Division 1 of this code, “partnership” shall include limited liability company, registered limited liability partnership, and foreign limited liability partnership, except where the context or the specific provisions of this division otherwise require. (Amended by Stats. 1995, Ch. 679, Sec. 11. Effective October 10, 1995.) § 29 Whenever any official is authorized to commence an action for the violation of any law relating to revenue or to compel the specific performance of such a law, he may designate the county in which the action shall be commenced and prosecuted, unless otherwise provided by law. (Added by Stats. 1951, Ch. 655.) § 30 The courts of this State shall recognize and enforce liabilities for taxes lawfully imposed by any other state, or the political subdivisions thereof, which extends a like comity to this State. (Amended by Stats. 1951, Ch. 1381.) § 31 The Attorney General or an appropriate official of any political subdivision of this State may bring suits in the courts of other states to collect taxes legally due this State or any political subdivision thereof. The officials of other states which extend a like comity to this State are empowered to sue for the collection of such taxes in the courts of this State. A certificate by the Secretary of State under the Great Seal of the State that such officers have authority to collect the tax is conclusive evidence of such authority. This section does not apply to Parts 8 and 9 of Division 2. (Amended by Stats. 1953, Ch. 569.) § 33 Human whole blood, plasma, blood products, and blood derivatives, or any human body parts held in a bank for medical purposes, shall be exempt from taxation for any purpose. (Added by Stats. 1965, Ch. 930.) § 34 Whenever an amount of money paid by a person to the state or any of its agencies includes a sum which can be identified as in fact intended as payment of a locally administered tax which should have been paid directly to a city, city and county, county or district within the state, the state or its agency may pay the amount to the local government entitled thereto and notify the payor of its action. This procedure, however, shall not be followed by the state or any of its agencies unless the governing body of the local government concerned has, by resolution, agreed with respect to such payments that a timely payment received by the state or its agency will be regarded as a timely payment to the local government concerned, and that it will process all claims with respect to such payment in the same manner as though the payment had been made to it in the first instance. (Added by Stats. 1969, Ch. 2.) § 35 Commencing with its January 1, 1985, population base and continuing until the date of certification of the 1990 Federal Census, the population to be used by the Controller and by all other state and county agencies for all purposes of allocation and distribution of grant funds and subventions, including, without limitation, the annual allocation from the Public Library Fund and from the Motor Vehicle License Fee Account in the Transportation Tax Fund, for any general law city located in a county of the 11th class, which city’s population as of January 1, 1985, was 38,925 based upon an estimate validated by the Department of Finance, shall be 38,925, adjusted annually, commencing January 1, 1986, by the percentage of population growth of the State of California as a whole. (Added by Stats. 1987, Ch. 440, Sec. 1. Effective September 8, 1987.) § 36 Whenever any notice or other communication is required by this code to be mailed by registered mail, the mailing of such notice or other communication by certified mail shall be deemed to be sufficient compliance with the requirements of law. (Added by Stats. 1970, Ch. 287.) § 36.5 (a) Whenever this code requires the tax collector to publish a notice in a newspaper, the tax collector shall also provide notice on the tax collector’s regularly maintained Internet Web site. (b) Any notice provided on the tax collector’s Internet Web site pursuant to this section shall be available for at least the same amount of time as the notice is required to be published in a newspaper. (c) The notice required pursuant to subdivision (a) shall be provided using either of the following methods: (1) By posting a copy of the newspaper containing the notice in a format that is downloaded in PDF format. (2) By providing a link to the Internet Web site of the newspaper containing the notice. (d) For purposes of this section, “newspaper” means a newspaper of general circulation. (Added by Stats. 2017, Ch. 336, Sec. 1. (SB 653) Effective January 1, 2018.) § 37 Notwithstanding any other provision of law, all interest and penalties owing due to late payment of supplemental unsecured property tax levies shall be canceled, if such payment is made by December 31, 1981. Notwithstanding any other provision of law, all interest and penalties owing on the readjusted amount of any other tax resulting from supplemental unsecured property tax levies shall be canceled, if the payment of such readjusted tax is made by December 31, 1981. As used in this section, “supplemental unsecured property tax levies” shall mean that amount of property tax levied by any city, county, city and county, and special district which is attributable to that portion of the property tax rate levied on the unsecured roll for the 1978–79 tax year, less the rate for voter-approved indebtedness, which is in excess of four dollars ($4) per one hundred dollars ($100) of assessed value. As used in this section, “the readjusted amount of any other tax resulting from supplemental unsecured property tax levies” shall mean the difference in any other tax levy between the amount that would have been levied had Article XIII A applied to the 1978–79 unsecured property tax roll and the amount levied using the 1977–78 secured roll property tax rate. (Added by Stats. 1981, Ch. 242, Sec. 3. Effective July 21, 1981.) § 38 (a) The Legislative Analyst shall submit a report to the Legislature regarding the possible consolidation of the remittance processing and cashiering functions and the mail processing operations, of the Franchise Tax Board, the State Board of Equalization, and the Employment Development Department. (b) The Franchise Tax Board, the State Board of Equalization, and the Employment Development Department shall provide the Legislative Analyst all data and information that the Legislative Analyst identifies as necessary for completing the report and shall assist the Legislative Analyst in the preparation of the report. The information provided to the Legislative Analyst shall include, but not be limited to, an evaluation of the short- and long-term fiscal and budgetary advantages and disadvantages that would result from the proposed consolidation of the remittance processing and cashiering functions and the mail processing functions of, the Franchise Tax Board, the State Board of Equalization, and the Employment Development Department. Any data and information requested by the Legislative Analyst shall be submitted on or before July 1, 2004. (c) The purpose of the report required by this section is to determine, to the extent possible and based on available information and reasonable assumptions, if there are any benefits to the consolidation of the management and control of these operations based on all of the following criteria: (1) The elimination of duplicative functions and fragmented responsibilities. (2) Increased operational efficiencies due to the use of improved technologies and economies of scale. (3) Additional interest earnings for the state. (d) For purposes of this section, “remittance processing and cashiering” means receiving, batching, balancing, and depositing remittances. (e) The Legislative Analyst shall provide to the Legislature its report and any recommendations and considerations with regard to the possible consolidation of these functions by November 1, 2004. (Added by Stats. 2003, Ch. 569, Sec. 1. Effective January 1, 2004.) § 38.10 (a) The Legislative Analyst shall, on an annual basis beginning January 1, 2021, collaborate with the California Tax Credit Allocation Committee and the Office of Historic Preservation to review the effectiveness of the tax credits allowed by Sections 17053.91 and 23691. The review shall include, but is not limited to, an analysis of the demand for the tax credit, the types and uses of projects receiving the tax credit, the jobs created by the use of the tax credits, and the economic impact of the tax credits. (b) This section shall remain in effect only until January 1, 2027, and as of that date is repealed. (Amended by Stats. 2021, Ch. 82, Sec. 1. (AB 150) Effective July 16, 2021. Repealed as of January 1, 2027, by its own provisions.) § 38.7 (a) On or before January 1, 2016, the Legislative Analyst’s Office shall provide to the Assembly Committee on Revenue and Taxation, the Senate Committee on Governance and Finance, and the public a report evaluating the economic effects and administration of the tax credits allowed pursuant to Sections 6902.5, 17053.85, and 23685. In researching the reports, the Legislative Analyst’s Office may do all of the following: (1) Request and receive all information provided to the California Film Commission pursuant to subdivision (g) of Sections 17053.85 and 23685. (2) Request and receive all information provided to the Franchise Tax Board relating to the sale or assignment of credits pursuant to subdivision (c) of Sections 17053.85 and 23685. (3) Request and receive all information provided to the board pursuant to subdivisions (c) and (g) of Section 6902.5. (b) The California Film Commission, the board, the Franchise Tax Board, the Employment Development Department, and all other relevant state agencies shall provide additional information, as specified by the Legislative Analyst’s Office, as needed to research the reports required by this section. (c) (1) The information received by the Legislative Analyst’s Office pursuant to this section shall be considered confidential taxpayer information subject to Sections 7056, 7056.5, and 19542 of this code and Section 1094 of the Unemployment Insurance Code, and shall be subject to the appropriate confidentiality requirements of the participating state agency. (2) The Legislative Analyst’s Office may publish statistics in conjunction with the reports required by this section that are derived from information provided to the Legislative Analyst’s Office pursuant to this section if the published statistics are classified to prevent the identification of particular taxpayers, reports, and tax returns and the publication of the percentage of dividends paid by a corporation that is deductible by the recipient under Part 11 (commencing with Section 23001) of Division 2. (Added by Stats. 2012, Ch. 840, Sec. 1. (SB 1197) Effective September 30, 2012. See similar section added by Stats. 2012, Ch. 841.) § 38.7 (a) On or before January 1, 2016, the Legislative Analyst’s Office shall provide to the Assembly Committee on Revenue and Taxation, the Senate Committee on Governance and Finance, and the public a report evaluating the economic effects and administration of the tax credits allowed pursuant to Sections 6902.5, 17053.85, and 23685. In researching the reports, the Legislative Analyst’s Office may do all of the following: (1) Request and receive all information provided to the California Film Commission pursuant to subdivision (g) of Sections 17053.85 and 23685. (2) Request and receive all information provided to the Franchise Tax Board relating to the sale or assignment of credits pursuant to subdivision (c) of Sections 17053.85 and 23685. (3) Request and receive all information provided to the board pursuant to subdivisions (c) and (g) of Section 6902.5. (b) The California Film Commission, the board, the Franchise Tax Board, the Employment Development Department, and all other relevant state agencies shall provide additional information, as specified by the Legislative Analyst’s Office, as needed to research the reports required by this section. (c) (1) The information received by the Legislative Analyst’s Office pursuant to this section shall be considered confidential taxpayer information subject to Sections 7056, 7056.5, and 19542 of this code and Section 1094 of the Unemployment Insurance Code, and shall be subject to the appropriate confidentiality requirements of the participating state agency. (2) The Legislative Analyst’s Office may publish statistics in conjunction with the reports required by this section that are derived from information provided to the Legislative Analyst’s Office pursuant to this section if the published statistics are classified to prevent the identification of particular taxpayers, reports, and tax returns and the publication of the percentage of dividends paid by a corporation that is deductible by the recipient under Part 11 (commencing with Section 23001) of Division 2. (Added by Stats. 2012, Ch. 841, Sec. 1. (AB 2026) Effective September 30, 2012.) § 38.9 (a) On or before May 1, 2023, the Legislative Analyst’s Office shall provide to the Assembly Committee on Revenue and Taxation, the Senate Committee on Governance and Finance, and the public a report evaluating the economic effects and administration of the tax credits allowed pursuant to Sections 6902.5, as amended by Chapter 8 of the Statutes of 2020, 17053.95, 17053.98, 23695, and 23698. In researching the reports, the Legislative Analyst’s Office may do all of the following: (1) Request and receive all information provided to the California Film Commission pursuant to subdivision (g) of Sections 17053.95, 17053.98, 23695, and 23698. (2) Request and receive all information provided to the Franchise Tax Board relating to the sale or assignment of credits pursuant to subdivision (c) of Sections 17053.95, 17053.98, 23695, and 23698. (3) Request and receive all information provided to the California Department of Tax and Fee Administration pursuant to subdivisions (c) and (g) of Section 6902.5, as amended by Chapter 8 of the Statutes of 2020. (b) On or before May 1, 2025, the Legislative Analyst’s Office shall provide to the Assembly Committee on Revenue and Taxation, the Senate Committee on Governance and Finance, and the public a report that summarizes the workforce diversity information collected by the California Film Commission pursuant to Sections 17053.95, 17053.98, 23695, and 23698 and that evaluates the effectiveness of the tax credits allowed pursuant to Sections 17053.98 and 23698, calculated using any applicable additional credit percentages, for increasing the diversity of the film production workforce. In researching the report, the Legislative Analyst’s Office may request and receive all information provided to the California Film Commission pursuant to subdivision (g) of Sections 17053.95, 17053.98, 23695, and 23698. (c) Notwithstanding Section 19542, the California Film Commission, the California Department of Tax and Fee Administration, the Franchise Tax Board, the Employment Development Department, and all other relevant state agencies shall provide additional information, as specified by the Legislative Analyst’s Office, as needed to research the reports required by this section. (d) (1) The information received by the Legislative Analyst’s Office pursuant to this section shall be considered confidential taxpayer information subject to Sections 7056, 7056.5, and 19542 of this code and Section 1094 of the Unemployment Insurance Code, and shall be subject to the appropriate confidentiality requirements of the participating state agency. (2) The Legislative Analyst’s Office may publish statistics in conjunction with the reports required by this section that are derived from information provided to the Legislative Analyst’s Office pursuant to this section, if the published statistics are classified to prevent the identification of particular taxpayers, reports, and tax returns and the publication of the percentage of dividends paid by a corporation that is deductible by the recipient under Part 11 (commencing with Section 23001) of Division 2. (Amended by Stats. 2021, Ch. 114, Sec. 1. (SB 144) Effective July 21, 2021.) § 40 (a) (1) The board shall publish on its Internet Web site a written formal opinion, a written memorandum opinion, or a written summary decision for each decision of the board in which the amount in controversy is five hundred thousand dollars ($500,000) or more, within 120 days of the date upon which the board rendered its decision. (2) A decision of the board shall not include consent calendar actions taken by the board. (b) Each formal opinion, memorandum opinion, and summary decision as described in subdivision (a) shall include all of the following: (1) Findings of fact. (2) The legal issue or issues presented. (3) Applicable law. (4) Analysis. (5) Disposition. (6) Names of adopting board members. (c) (1) A board member may submit a dissenting opinion setting forth his or her rationale for disagreeing with the memorandum opinion or formal opinion. (2) A board member may submit a concurring opinion setting forth the board member’s rationale for agreeing with the result reached in the memorandum opinion or formal opinion, if different than the rationale set forth in the memorandum opinion or formal opinion. (3) A dissenting opinion and a concurring opinion shall be published in the same manner as prescribed in subdivision (a) for a formal opinion or memorandum opinion. (d) A formal opinion or memorandum opinion adopted by the board may be cited as precedent in any matter or proceeding before the board, unless the opinion has been depublished, overruled, or superseded. A summary decision may not be cited as precedent in any matter or proceeding before the board. (Added by Stats. 2012, Ch. 788, Sec. 1. (AB 2323) Effective January 1, 2013.) § 41 (a) (1) Notwithstanding any other law, and except as provided in paragraph (2), any bill, introduced on or after January 1, 2020, that would authorize a new tax expenditure under Part 10 (commencing with Section 17001) of Division 2, Part 11 (commencing with Section 23001) of Division 2, or both, or that would authorize an exemption from the taxes imposed by Part 1 (commencing with Section 6001) of Division 2, shall contain all of the following: (A) Specific goals, purposes, and objectives that the tax expenditure will achieve. (B) Detailed performance indicators for the Legislature to use when measuring whether the tax expenditure meets the goals, purposes, and objectives stated in the bill. (C) Data collection requirements to enable the Legislature to determine whether the tax expenditure is meeting, failing to meet, or exceeding those specific goals, purposes, and objectives. The requirements shall include the specific data and baseline measurements to be collected and remitted in each year the tax expenditure is in effect, in order for the Legislature to measure the change in performance indicators, and the specific taxpayers, state agencies, or other entities required to collect and remit data. (2) A bill that would authorize a new tax expenditure that is a gross income exclusion shall be exempt from including the information in subparagraphs (B) and (C) of paragraph (1), if the Legislature determines there is no available data to collect and report. (b) For purposes of this section, “tax expenditure” means a credit, deduction, exclusion, exemption, or any other tax benefit as provided for by the state. (c) Taxpayer information collected pursuant to this section is subject to Sections 7056.5 and 19542. (Amended by Stats. 2024, Ch. 124, Sec. 1. (AB 3289) Effective January 1, 2025.) § 50 Division 1, Part 0.5, Chapter 1 For purposes of base year values as determined by Section 110.1, values determined for property which is purchased or changes ownership after the 1975 lien date shall be entered on the roll for the lien date next succeeding the date of the purchase or change in ownership. Values determined after the 1975 lien date for property which is newly constructed shall be entered on the roll for the lien date next succeeding the date of completion of the new construction. The value of new construction in progress on the lien date shall be entered on the roll as of the lien date. However, the value of new construction in progress shall not be a base year value until completion of that construction, as described in Section 71. (Amended by Stats. 2017, Ch. 80, Sec. 1. (AB 652) Effective July 21, 2017.) § 51 Division 1, Part 0.5, Chapter 1 (a) For purposes of subdivision (b) of Section 2 of Article XIII A of the California Constitution, for each lien date after the lien date in which the base year value is determined pursuant to Section 110.1, the taxable value of real property shall, except as otherwise provided in subdivision (b) or (c), be the lesser of: (1) Its base year value, compounded annually since the base year by an inflation factor, which shall be determined as follows: (A) For any assessment year commencing prior to January 1, 1985, the inflation factor shall be the percentage change in the cost of living, as defined in Section 2212. (B) For any assessment year commencing after January 1, 1985, and prior to January 1, 1998, the inflation factor shall be the percentage change, rounded to the nearest one-thousandth of 1 percent, from December of the prior fiscal year to December of the current fiscal year in the California Consumer Price Index for all items, as determined by the California Department of Industrial Relations. (C) For any assessment year commencing on or after January 1, 1998, the inflation factor shall be the percentage change, rounded to the nearest one-thousandth of 1 percent, from October of the prior fiscal year to October of the current fiscal year in the California Consumer Price Index for all items, as determined by the California Department of Industrial Relations. (D) In no event shall the percentage increase for any assessment year determined pursuant to subparagraph (A), (B), or (C) exceed 2 percent of the prior year’s value. (2) Its full cash value, as defined in Section 110, as of the lien date, taking into account reductions in value due to damage, destruction, depreciation, obsolescence, removal of property, or other factors causing a decline in value. (b) If the real property was damaged or destroyed by disaster, misfortune, or calamity and the board of supervisors of the county in which the real property is located has not adopted an ordinance pursuant to Section 170, or any portion of the real property has been removed by voluntary action by the taxpayer, the taxable value of the property shall be the sum of the following: (1) The lesser of its base year value of land determined under paragraph (1) of subdivision (a) or full cash value of land determined pursuant to paragraph (2) of subdivision (a). (2) The lesser of its base year value of improvements determined pursuant to paragraph (1) of subdivision (a) or the full cash value of improvements determined pursuant to paragraph (2) of subdivision (a). In applying this subdivision, the base year value of the subject real property does not include that portion of the previous base year value of that property that was attributable to any portion of the property that has been destroyed or removed. The sum determined under this subdivision shall then become the base year value of the real property until that property is restored, repaired, or reconstructed or other provisions of law require establishment of a new base year value. (c) If the real property was damaged or destroyed by disaster, misfortune or calamity and the board of supervisors in the county in which the real property is located has adopted an ordinance pursuant to Section 170, the taxable value of the real property shall be its assessed value as computed pursuant to Section 170. (d) For purposes of this section, “real property” means that appraisal unit that persons in the marketplace commonly buy and sell as a unit, or that is normally valued separately. (e) Nothing in this section shall be construed to require the assessor to make an annual reappraisal of all assessable property. However, for each lien date after the first lien date for which the taxable value of property is reduced pursuant to paragraph (2) of subdivision (a), the value of that property shall be annually reappraised at its full cash value as defined in Section 110 until that value exceeds the value determined pursuant to paragraph (1) of subdivision (a). In no event shall the assessor condition the implementation of the preceding sentence in any year upon the filing of an assessment appeal. (Amended by Stats. 2000, Ch. 647, Sec. 1. Effective January 1, 2001.) § 51.5 Division 1, Part 0.5, Chapter 1 (a) Notwithstanding any other provision of the law, any error or omission in the determination of a base year value pursuant to paragraph (2) of subdivision (a) of Section 110.1, including the failure to establish that base year value, which does not involve the exercise of an assessor’s judgment as to value, shall be corrected in any assessment year in which the error or omission is discovered. (b) An error or an omission described in subdivision (a) which involves the exercise of an assessor’s judgment as to value may be corrected only if it is placed on the current roll or roll being prepared, or is otherwise corrected, within four years after July 1 of the assessment year for which the base year value was first established. (c) An error or an omission involving the exercise of an assessor’s judgment as to value shall not include errors or omissions resulting from the taxpayer’s fraud, concealment, misrepresentation, or failure to comply with any provision of law for furnishing information required by Sections 441, 470, 480, 480.1, and 480.2, or from clerical errors. (d) If a correction authorized by subdivision (a) or (b) reduces the base year value, appropriate cancellations or refunds of tax shall be granted in accordance with this division. If the correction increases the base year value, appropriate escape assessments shall be imposed in accordance with this division. (e) The existence of a clerical error shall be proved by a preponderance of the evidence, except that if the correction is made more than four years after July 1 of the assessment year for which the base year value was first established the clerical error shall be proved by clear and convincing evidence, including the papers in the assessor’s office. Nothing in this subdivision shall be construed to change the standard of proof applicable to a determination of the value of property. (f) For purposes of this section: (1) “Assessment year” means an assessment year as defined in Section 118. (2) “Clerical errors” means only those defects of a mechanical, mathematical, or clerical nature, not involving judgment as to value, where it can be shown from papers in the assessor’s office or other evidence that the defect resulted in a base year value that was not intended by the assessor at the time it was determined. (Amended by Stats. 1990, Ch. 126, Sec. 2. Effective June 11, 1990.) § 52 Division 1, Part 0.5, Chapter 1 (a) Notwithstanding any other provision of this division, property which is enforceably restricted pursuant to Section 8 of Article XIII of the California Constitution shall be valued for property tax purposes pursuant to Article 1.5 (commencing with Section 421) and Article 1.9 (commencing with Section 439) of Chapter 3 of Part 2. (b) Notwithstanding any other provision of this division, property restricted to timberland use pursuant to subdivision (j) of Section 3 of Article XIII of the California Constitution shall be valued for property tax purposes pursuant to Article 1.7 (commencing with Section 431) of Chapter 3 of Part 2. (c) Notwithstanding any other provision of this division, property subject to valuation as a golf course pursuant to Section 10 of Article XIII of the California Constitution shall be valued for property tax purposes in accordance with such section. (d) Notwithstanding the provisions of this division, property subject to valuation pursuant to Section 11 of Article XIII of the California Constitution shall be valued for property tax purposes in accordance with such section. (Added by Stats. 1979, Ch. 242.) § 53 Division 1, Part 0.5, Chapter 1 (a) Except as provided in subdivision (b), the initial base year value for fruit and nut trees and grapevines subject to exemption pursuant to subdivision (i) of Section 3 of Article XIII of the California Constitution shall be the full cash value of those properties as of the lien date of their first taxable year. (b) A county board of supervisors may, after consulting with affected local agencies within the county’s boundaries, provide by ordinance that the initial base year value for replacement grapevines that are planted to replace grapevines less than 15 years of age that were removed solely as a result of phylloxera infestation or Pierce’s Disease, and are planted on the same parcel as the replaced grapevines, as certified in writing by the county agricultural commissioner, shall be the base year value of the removed grapevines factored to the lien date of the first taxable year of the replacement grapevines. The assignment of base year replacement value shall be limited to that portion of the replacement grapevines that are substantially equivalent to the grapevines that were replaced, if the replacement grapevines are planted at a greater density. (Amended by Stats. 2000, Ch. 272, Sec. 1. Effective January 1, 2001.) § 60 Division 1, Part 0.5, Chapter 2 A “change in ownership” means a transfer of a present interest in real property, including the beneficial use thereof, the value of which is substantially equal to the value of the fee interest. (Added by Stats. 1979, Ch. 242.) § 61 Division 1, Part 0.5, Chapter 2 Except as otherwise provided in Section 62, change in ownership, as defined in Section 60, includes, but is not limited to: (a) The creation, renewal, sublease, assignment, or other transfer of the right to produce or extract oil, gas, or other minerals regardless of the period during which the right may be exercised. The balance of the property, other than the mineral rights, shall not be reappraised pursuant to this section. (b) The creation, renewal, extension, or assignment of a taxable possessory interest in tax exempt real property for any term. For purposes of this subdivision: (1) “Renewal” and “extension” do not include the granting of an option to renew or extend an existing agreement pursuant to which the term of possession of the existing agreement would, upon exercise of the option, be lengthened, whether the option is granted in the original agreement or subsequent thereto. (2) Any “renewal” or “extension” of a possessory interest during the reasonably anticipated term of possession used by the assessor to value that interest does not cause a change in ownership until the end of the reasonably anticipated term of possession used by the assessor to value that interest. At the end of the reasonably anticipated term of possession used by the assessor, a new base year value, based on a new reasonably anticipated term of possession, shall be established for the possessory interest. (3) “Assignment” of a possessory interest means the transfer of all rights held by a transferor in a possessory interest. (c) (1) (A) The creation of a leasehold interest in taxable real property for a term of 35 years or more (including renewal options). (B) The termination of a leasehold interest in taxable real property which had an original term of 35 years or more (including renewal options). (C) Any transfer of a leasehold interest having a remaining term of 35 years or more (including renewal options). (D) Any transfer of a lessor’s interest in taxable real property subject to a lease with a remaining term (including renewal options) of less than 35 years. (2) Only that portion of a property subject to that lease or transfer shall be considered to have undergone a change in ownership. (3) For the purpose of this subdivision, for 1979–80 and each year thereafter, it shall be conclusively presumed that all homes eligible for the homeowners’ exemption, other than manufactured homes located on rented or leased land and subject to taxation pursuant to Part 13 (commencing with Section 5800) and floating homes subject to taxation pursuant to Section 229, that are on leased land have a renewal option of at least 35 years on the lease of that land, whether or not in fact that renewal option exists in any contract or agreement. (d) (1) (A) A sublease of a taxable possessory interest in tax-exempt real property for a term, including renewal options, that exceeds half the length of the remaining term of the leasehold, including renewal options. (B) The termination of a sublease of a taxable possessory interest in tax-exempt property with an original term, including renewal options, that exceeds half the length of the remaining term of the leasehold, including renewal options. (C) Any transfer of a sublessee’s interest with a remaining term, including renewal options, that exceeds half of the remaining term of the leasehold. (2) Any transfer of a possessory interest in tax-exempt real property subject to a sublease with a remaining term, including renewal options, that does not exceed half the remaining term of the leasehold, including renewal options. (e) The creation, transfer, or termination of any joint tenancy interest, except as provided in subdivision (f) of Section 62, and in Section 63 and Section 65. (f) The creation, transfer, or termination of any tenancy-in-common interest, except as provided in subdivision (a) of Section 62 and in Section 63. (g) Any vesting of the right to possession or enjoyment of a remainder or reversionary interest that occurs upon the termination of a life estate or other similar precedent property interest, except as provided in subdivision (d) of Section 62 and in Section 63. (h) Any interests in real property that vest in persons other than the trustor (or, pursuant to Section 63, his or her spouse) when a revocable trust becomes irrevocable. (i) The transfer of stock of a cooperative housing corporation, vested with legal title to real property that conveys to the transferee the exclusive right to occupancy and possession of that property, or a portion thereof. A “cooperative housing corporation” is a real estate development in which membership in the corporation, by stock ownership, is coupled with the exclusive right to possess a portion of the real property. (j) The transfer of any interest in real property between a corporation, partnership, or other legal entity and a shareholder, partner, or any other person. (Amended by Stats. 2010, Ch. 654, Sec. 2. (SB 1494) Effective January 1, 2011.) § 62 Division 1, Part 0.5, Chapter 2 Change in ownership shall not include: (a) (1) Any transfer between coowners that results in a change in the method of holding title to the real property transferred without changing the proportional interests of the coowners in that real property, such as a partition of a tenancy in common. (2) Any transfer between an individual or individuals and a legal entity or between legal entities, such as a cotenancy to a partnership, a partnership to a corporation, or a trust to a cotenancy, that results solely in a change in the method of holding title to the real property and in which proportional ownership interests of the transferors and transferees, whether represented by stock, partnership interest, or otherwise, in each and every piece of real property transferred, remain the same after the transfer. The provisions of this paragraph shall not apply to transfers also excluded from change in ownership under the provisions of subdivision (b) of Section 64. (b) Any transfer for the purpose of perfecting title to the property. (c) (1) The creation, assignment, termination, or reconveyance of a security interest; or (2) the substitution of a trustee under a security instrument. (d) Any transfer by the trustor, or by the trustor’s spouse or registered domestic partner, or by both, into a trust for so long as (1) the transferor is the present beneficiary of the trust, or (2) the trust is revocable; or any transfer by a trustee of such a trust described in either clause (1) or (2) back to the trustor; or, any creation or termination of a trust in which the trustor retains the reversion and in which the interest of others does not exceed 12 years duration. (e) Any transfer by an instrument whose terms reserve to the transferor an estate for years or an estate for life. However, the termination of such an estate for years or estate for life shall constitute a change in ownership, except as provided in subdivision (d) and in Section 63. (f) The creation or transfer of a joint tenancy interest if the transferor, after the creation or transfer, is one of the joint tenants as provided in subdivision (b) of Section 65. (g) Any transfer of a lessor’s interest in taxable real property subject to a lease with a remaining term (including renewal options) of 35 years or more. For the purpose of this subdivision, for 1979–80 and each year thereafter, it shall be conclusively presumed that all homes eligible for the homeowners’ exemption, other than manufactured homes located on rented or leased land and subject to taxation pursuant to Part 13 (commencing with Section 5800) and floating homes subject to taxation pursuant to Section 229, that are on leased land have a renewal option of at least 35 years on the lease of that land, whether or not in fact that renewal option exists in any contract or agreement. (h) Any purchase, redemption, or other transfer of the shares or units of participation of a group trust, common trust fund, pooled fund, or other collective investment fund established by a financial institution. (i) Any transfer of stock or membership certificate in a housing cooperative that was financed under one mortgage, provided that mortgage was insured under Section 213, 221(d)(3), 221(d)(4), or 236 of the National Housing Act, as amended, or that housing cooperative was financed or assisted pursuant to Section 514, 515, or 516 of the Housing Act of 1949 or Section 202 of the Housing Act of 1959, or the housing cooperative was financed by a direct loan from the California Housing Finance Agency, and provided that the regulatory and occupancy agreements were approved by the governmental lender or insurer, and provided that the transfer is to the housing cooperative or to a person or family qualifying for purchase by reason of limited income. Any subsequent transfer from the housing cooperative to a person or family not eligible for state or federal assistance in reduction of monthly carrying charges or interest reduction assistance by reason of the income level of that person or family shall constitute a change of ownership. (j) Any transfer during the period March 1, 1975, to March 1, 1981, between coowners in any property that was held by them as coowners for all or part of that period, and which was eligible for a homeowner’s exemption during the period of the coownership, notwithstanding any other provision of this chapter. Any transferee whose interest was revalued in contravention of the provisions of this subdivision shall obtain a reversal of that revaluation with respect to the 1980–81 assessment year and thereafter, upon application to the county assessor of the county in which the property is located filed on or before March 26, 1982. No refunds shall be made under this subdivision for any assessment year prior to the 1980–81 fiscal year. (k) Any transfer of property or an interest therein between a corporation sole, a religious corporation, a public benefit corporation, and a holding corporation as defined in Section 23701h holding title for the benefit of any of these corporations, or any combination thereof (including any transfer from one entity to the same type of entity), provided that both the transferee and transferor are regulated by laws, rules, regulations, or canons of the same religious denomination. ( l ) Any transfer, that would otherwise be a transfer subject to reappraisal under this chapter, between or among the same parties for the purpose of correcting or reforming a deed to express the true intentions of the parties, provided that the original relationship between the grantor and grantee is not changed. (m) Any intrafamily transfer of an eligible dwelling unit from a parent or parents or legal guardian or guardians to a minor child or children or between or among minor siblings as a result of a court order or judicial decree due to the death of the parent or parents. As used in this subdivision, “eligible dwelling unit” means the dwelling unit that was the principal place of residence of the minor child or children prior to the transfer and remains the principal place of residence of the minor child or children after the transfer. (n) Any transfer of an eligible dwelling unit, whether by will, devise, or inheritance, from a parent or parents to a child or children, or from a guardian or guardians to a ward or wards, if the child, children, ward, or wards have been disabled, as provided in subdivision (d) of Section 12304 of the Welfare and Institutions Code, for at least five years preceding the transfer and if the child, children, ward, or wards have adjusted gross income that, when combined with the adjusted gross income of a spouse or spouses, parent or parents, and child or children, does not exceed twenty thousand dollars ($20,000) in the year in which the transfer occurs. As used in this subdivision, “child” or “ward” includes a minor or an adult. As used in this subdivision, “eligible dwelling unit” means the dwelling unit that was the principal place of residence of the child or children, or ward or wards for at least five years preceding the transfer and remains the principal place of residence of the child or children, or ward or wards after the transfer. Any transferee whose property was reassessed in contravention of this subdivision for the 1984–85 assessment year shall obtain a reversal of that reassessment upon application to the county assessor of the county in which the property is located. Application by the transferee shall be made to the assessor no later than 30 days after the later of either the transferee’s receipt of notice of reassessment pursuant to Section 75.31 or the end of the 1984–85 fiscal year. (o) Any transfer of a possessory interest in tax-exempt real property subject to a sublease with a remaining term, including renewal options, that exceeds half the length of the remaining term of the leasehold, including renewal options. (p) (1) Commencing on January 1, 2000, any transfer between registered domestic partners, as defined in Section 297 of the Family Code, including, but not limited to: (A) Transfers to a trustee for the beneficial use of a registered domestic partner, or the surviving registered domestic partner of a deceased transferor, or by a trustee of such a trust to the registered domestic partner of the trustor. (B) Transfers that take effect upon the death of a registered domestic partner. (C) Transfers to a registered domestic partner or former registered domestic partner in connection with a property settlement agreement or decree of dissolution of a registered domestic partnership or legal separation. (D) The creation, transfer, or termination, solely between registered domestic partners, of any coowner’s interest. (E) The distribution of a legal entity’s property to a registered domestic partner or former registered domestic partner in exchange for the interest of the registered domestic partner in the legal entity in connection with a property settlement agreement or a decree of dissolution of a registered domestic partnership or legal separation. (2) Any transferee whose property was reassessed in contravention of the provisions of this subdivision for a transfer occurring between January 1, 2000, and January 1, 2006, shall obtain a reversal of that reassessment upon application to the county assessor of the county in which the property is located. Application by the transferee shall be made to the assessor no later than June 30, 2009. A county may charge a fee for its costs related to the application and reassessment reversal in an amount that does not exceed the actual costs incurred. This paragraph shall be liberally construed to provide the benefits of this subdivision and Article XIII A of the California Constitution to registered domestic partners. (A) After consultation with the California Assessors’ Association, the State Board of Equalization shall prescribe the form for claiming the reassessment reversal described in paragraph (2). The claim form shall be entitled “Claim for Reassessment Reversal for Registered Domestic Partners.” The claim shall state on its face that a “certificate of registered domestic partnership” is available upon request from the California Secretary of State. (B) The information on the claim shall include a description of the property, the parties to the transfer of interest in the property, the date of the transfer of interest in the property, and a statement that the transferee registered domestic partner and the transferor registered domestic partner were, on the date of transfer, in a registered domestic partnership as defined in Section 297 of the Family Code. (C) The claimant shall declare that the information provided on the form is true, correct, and complete to the best of the claimant’s knowledge and belief. (D) The claimant shall provide with the completed claim the “Certificate of Registered Domestic Partnership,” or photocopy thereof, naming the transferee and transferor as registered domestic partners and reflecting the creation of the registered domestic partnership on a date prior to, or concurrent with, the date of the transfer for which a reassessment reversal is requested. (E) Any reassessment reversal granted pursuant to a claim shall apply commencing with the lien date of the assessment year, as defined in Section 118, in which the claim is filed. No refunds shall be made under this paragraph for any prior assessment year. (F) Under any reassessment reversal granted pursuant to that claim, the adjusted full cash value of the subject real property in the assessment year described in subparagraph (E) shall be the adjusted base year value of the subject real property in the assessment year in which the excluded purchase or transfer took place, factored to the assessment year described in subparagraph (E) for both of the following: (i) Inflation as annually determined in accordance with paragraph (1) of subdivision (a) of Section 51. (ii) Any subsequent new construction occurring with respect to the subject real property. (q) (1) Any transfer of property occurring on or after January 1, 2000, to June 26, 2015, inclusive, between local registered domestic partners, including, but not limited to: (A) Transfers to a trustee for the beneficial use of a local registered domestic partner, or the surviving local registered domestic partner of a deceased transferor, or by a trustee of such a trust to the local registered domestic partner of the trustor. (B) Transfers that take effect upon the death of a local registered domestic partner. (C) Transfers to a local registered domestic partner or former local registered domestic partner in connection with a property settlement agreement or decree of dissolution of a local registered domestic partnership or legal separation. (D) The creation, transfer, or termination, solely between local registered domestic partners, of any coowner’s interest. (E) The distribution of a legal entity’s property to a local registered domestic partner or former local registered domestic partner in exchange for the interest of the local registered domestic partner in the legal entity in connection with a property settlement agreement or a decree of dissolution of a local registered domestic partnership or legal separation. (2) Any transferee whose property was reassessed in contravention of this subdivision shall obtain a reversal of that reassessment upon application to the county assessor of the county in which the property is located. Application by the transferee shall be made to the assessor no later than June 30, 2022. A county may charge a fee for its costs related to the application and reassessment reversal in an amount that does not exceed the actual costs incurred. This paragraph shall be liberally construed to provide the benefits of this subdivision and Article XIII A of the California Constitution to local registered domestic partners. (A) After consultation with the California Assessors’ Association, the State Board of Equalization shall prescribe the form for claiming the reassessment reversal described in paragraph (2). The claim form shall be entitled “Claim for Reassessment Reversal for Local Registered Domestic Partners.” (B) The information on the claim shall include a description of the property, the parties to the transfer of interest in the property, the date of the transfer of interest in the property, and a statement that the transferee local registered domestic partner and the transferor local registered domestic partner were, on the date of transfer, in a local registered domestic partnership as defined by paragraph (3). (C) The claimant shall declare that the information provided on the form is true, correct, and complete to the best of their knowledge and belief. (D) The claimant shall provide with the completed claim documentation naming the transferee and transferor as local registered domestic partners and reflecting the creation of the local registered domestic partnership on a date prior to, or concurrent with, the date of the transfer for which a reassessment reversal is requested. (E) Any reassessment reversal granted pursuant to a claim shall apply commencing with the lien date of the assessment year, as defined in Section 118, in which the claim is filed. No refunds shall be made under this paragraph for any prior assessment year. (F) Under any reassessment reversal granted pursuant to that claim, the adjusted full cash value of the subject real property in the assessment year described in subparagraph (E) shall be the adjusted base year value of the subject real property in the assessment year in which the excluded purchase or transfer took place, factored to the assessment year described in subparagraph (E) for both of the following: (i) Inflation as annually determined in accordance with paragraph (1) of subdivision (a) of Section 51. (ii) Any subsequent new construction occurring with respect to the subject real property. (3) For purposes of this subdivision, “local registered domestic partner” means a registered domestic partnership established by a city, county, city and county, or special district in which both of the following conditions are met: (A) The registrants were of the same sex at the time of registration. (B) The registrants were not in a registered domestic partnership with, or married to, any other person at the time of the transfer. (r) (1) Any parent to child transfer of stock in a qualified corporation that results in a change in ownership of a qualified property owned by the qualified corporation, provided that the transfer of stock is due to the death of a parent or parents. (2) The assessor shall report quarterly to the State Board of Equalization all transfers for which a claim for exclusion is made for a qualified property pursuant to this subdivision and the amount of each exclusion claimed. (3) The exclusion provided by this section shall apply only to a qualified property. (4) For purposes of this subdivision, both of the following definitions shall apply: (A) “Qualified corporation” means a corporation that satisfies all of the following conditions: (i) Was created between March 1, 1975, and November 6, 1986, inclusive. (ii) The corporation owns qualified property. (iii) The only stockholders in the corporation have been the parents and their children. (B) “Qualified property” means a parcel of