Page 30 - CTT Subdivision_Manual_CA

TsieTglereHgearTieon oF properTy Taxes, ConT. TiTTle Here
A reassessment is triggered by a change in value based
on a transfer of ownership or new construction. If the reassessment is based on a transfer of ownership, a Supplemental Tax Bill will be issued to reflect the increase from the time of sale to the end of the tax year. If the reassessment is based on new construction, the value will be the construction value as of January 1st or as of the recording date on a Notice of Completion (for non-exempt developments).
If your project is a standard subdivision or planned development which required the recording of your tract map prior to commencement of construction, chances are the property taxes will be segregated prior to your sales. Your concern will be whether the segregated tax bills reflect the value of a vacant lot or a complete or partially complete home.
The Assessor no longer requires the filing of a Builder’s Exclusion/ConEx form to exempt you from the issuance
of a Supplemental Tax Bill generated by a Notice of Completion on new construction, with the exception of condominium conversions, commercial condominiums and condominiums of four units or less. However, you can still be subject to an Escaped Assessment, Adjusted Tax Bill or an Unsecured Tax Bill that reflects the increase in value of new construction as of January 1st.
These bills usually arrive after you have sold your homes or units. If the taxes are segregated and you have sold the home, the bill should be already prorated for that portion of the year in which you were the owner. If the taxes are not segregated, you need to have anticipated this and collected an adequate proration from your buyer.
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