Assessor's New Construction Exclusion
Conditions of Exclusion
SECTION 75.12 of the California Revenue and Taxation Code provides that any real property on which new construction is completed and which qualifies for the exclusion under Section 75.12 shall not be added to the supplemental roll until the date that property, in whole or in part.
- Changes ownership
- Is rented or leased, or
- Is occupied or otherwise used by the owner or with the owner's consent, except a model home or other use which is incidental to an offer for a change of ownership, whichever comes first.
This exclusion applies only if the owner notifies the assessor in writing prior to, or within 30 days of the commencement of construction that he or she offers or intends to offer that property for sale or other change of ownership, and does not intend to rent, lease, occupy or otherwise use that property, except model homes or other use as is incidental to an offer for a change of ownership, and the owner requests the application of this section.
The owner of any real property granted this exclusion shall notify the assessor within 45 days of the earliest date that any of the following occurs:
- The property changes ownership subject to an unrecorded Contract of Sale
- The property is rented or leased
- The property is occupied and the occupancy of the property is other than as a model home or incidental to an offer for a change of ownership.
The failure to timely notify the assessor may result in a penalty of one hundred dollars ($100) or 10% of the taxes applicable to the new base year value, whichever is greater, not to exceed two thousand five hundred dollars ($2,500).