Laws, Regulations & Annotations

C

210.0000 CALIFORNIA LAND CONSERVATION ACT

Annotation 210.0029

210.0029 Valuation. Property which is subject to a contract under the California Land Conservation Act, restricts its use in exchange for a reduced valuation for property tax purposes. Property is also subject to a Warranty Easement Deed in favor of the United States (the Easement). The easement is a wetlands reserve program easement pursuant to the federal Wetlands Reserve Program (WRP) administered by the United States Department of Agriculture, Natural Resources Conservation Services. The WRP provides payments and cost sharing to farmers in exchange for restoring farmed wetlands.

Under Revenue and Taxation Code section 423, an assessor is prohibited from using the comparative sales method of valuation except as provided under sections 423.7 and 423.8. Section 423.7 provides that when valuing open-space land subject to a wildlife habitat contract, as defined by section 421(f), all assessors and the county board must value that land pursuant to the special comparative sales valuation method contained in that section. The purpose of enacting the special comparative sales valuation method was to give relief to taxpayers whose property was eligible for inclusion under the Land Conservation Act but where the local government had not implemented the Land Conservation Act or the assessee chose not to enter into a Land Conservation Act contract with the local government to restrict the property.

Since the Property is Land Conservation Act property, the Property qualifies for valuation under section 423. Section 423.7 is merely an alternative valuation method to be used where valuation under section 423 is unavailable to a taxpayer. Thus, section 423.7 is not to be used by an assessor merely because it is subject to a wildlife habitat contract if that property may also qualify for relief under section 423. C 8/30/2012.