Laws, Regulations & Annotations

V

850.0000 VALUE

Annotation 850.0061

850.0061 Purchase Price Presumption. Revenue and Taxation Code section 110(b) establishes a rebuttable presumption that "full cash value" or "fair market value," as defined in section 110(a), is the actual purchase price of the property, if the terms were negotiated under specified conditions reflecting an "open market transaction." Accordingly, an assessor may value property at other than the purchase price if he/she can establish by a preponderance of evidence that the fair market value is otherwise. In Dennis v. County of Santa Clara (1989) 215 Cal.App.3d 1019, the court noted that the purchase price may play a significant role in the reassessment of property upon its sale but that the purchase price is only the beginning and not necessarily the end of the inquiry. The court concluded that an arm�s length, open market sale for a price that is not influenced by an exigency of either buyer or seller permits the assessor to presume fair market value from the purchase price, but the presumption may nevertheless be rebutted by evidence that the fair market value of the property is otherwise. C 11/26/2012.