Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2017

Property Tax Annotations

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A

170.0000 ASSESSMENT

Annotation 170.0039.005

170.0039.005 Fixtures. Under Revenue and Taxation Code section 110 and Property Tax Rule 2, the purchase price is rebuttably presumed to be the full cash value or fair market value if the terms of the transaction were negotiated at arms length between a knowledgeable transferor and transferee neither of which could take advantage of the exigencies of the other. Neither Section 110(b) nor Rule 2 states that the purchase price presumption applies to an allocation of a purchase price applied to individual assets purchased as a group of assets. Therefore, where the total assets of an entity are sold and the aggregate purchase price includes many different assets, there is no assurance that the allocation to any individual asset is an accurate indication of fair market value, and the purchase price presumption does not apply. However, the assessor may consider the allocated purchase price of personal property as one factor in determining its full cash value for property tax purposes. C 3/19/2014.