New Construction Resources
The following resources provide information and guidance on the New Construction Survey Topic.
California Constitution
| Citation | Title |
|---|---|
| Article XIII A, §2 | Tax Limitation |
Health and Safety Code
| Section | Title |
|---|---|
| 19825-19829 | Local Building Permits — Contents |
Revenue and Taxation Code
| Section | Title |
|---|---|
| 50-53 | Base Year Values |
| 60-69.6 | Change in Ownership and Purchase |
| 70-74.8 | New Construction |
| 75.10-75.15 | Assessments on the Supplemental Roll |
| 75.18 | Application of Inflation Rate |
| 155-169 | Administrative Provisions |
| 201-242 | Taxable and Exempt Property |
| 401-409 | General Requirements |
| 441-470 | Information from Taxpayer |
Property Tax Rules
The BOE is mandated to prescribe rules and regulations to govern local boards of equalization when equalizing and Assessors when assessing in compliance with the rulemaking procedures adopted by the California Office of Administrative Law.
Pursuant to that mandate, the BOE has adopted various Property Tax Rules which are contained in Title 18 of the California Code of Regulations.
The following Property Tax Rules pertain to new construction.
| Rule | Title |
|---|---|
| 131 | Fruit and Nut Tree and Grapevine Exemption |
| 463 | Newly Constructed Property |
| 462.540 | Change in Ownership — Base Year Value Transfers |
| 463.500 | Date of Completion of New Construction — Supplemental Assessments |
Assessors' Handbook (AH)
The AH is a series of manuals developed by the staff of the Board of Equalization (BOE) in an open process. The objective of the AH is to give Assessors, their staff, and other interested parties an understanding of the principles of property assessment and real and personal property appraisal for property tax purposes. Additionally, the AH presents the BOE staff's interpretation of rules, laws, and court decisions on property assessment.
In attempting to relate the advice or guidance provided in the AH, care must be taken to ensure that the advice has not been superseded by subsequent legislative or administrative action, court decisions, or reconsideration of staff's position. Following advice provided in the AH is not reasonable reliance upon written advice for purpose of obtaining relief from a failure to pay tax, interest, and/or penalty. In any instance where there is an inconsistency between a statute or regulation and an AH section, statutory or regulatory law is controlling.
The following AH section pertains to procedural issues involving new construction.
| Section | Title |
|---|---|
| 410 | Assessment of Newly Constructed Property |
Special Topic Survey
Letters To Assessors (LTAs)
LTAs provide an ongoing advisory service for Assessors and other interested parties. The letters present BOE staff's interpretation of rules, laws, and court decisions on property tax assessment.
The following LTAs pertain to procedural issues involving new construction.
| Letter to Assessor | Title |
|---|---|
| 78/145 | Valuation of Newly Constructed Property |
| 78/188 | Principles of New Construction Valuation |
| 79/204 | Newly Constructed Property |
| 80/77 | Construction in Progress |
| 85/113 | Soundproofing Homes Located in the Vicinity of Airports |
| 91/37 | Valuation of New Construction: Property Subject to Governmental Restrictions on Water Service |
| 93/05 | Proposition 110, New Construction Exclusion for Disabled Residents |
| 94/14 | Assessment of Relocated Improvements |
| 94/47 | Proposition 177: Disabled Persons' Access New Construction Exclusion |
| 99/23 | Proposition 1: Property Tax Relief for Contaminated Property |
| 99/62 | New Construction Exclusion — Underground Storage Tanks |
| 2001/089 | Seismic Safety New Construction Exclusions |
| 2004/051 | Solar Energy New Construction Exclusion |
| 2007/047 | Property Tax Relief — Contaminated Property |
| 2007/050 | New Construction Exclusion — Underground Storage Tanks |
| 2008/037 | Solar Energy Property Tax Incentive |
| 2008/071 | Solar Energy System Exclusion Form |
| 2010/036 | New Construction Exclusion: Seismic Retrofitting Improvements |
| 2011/030 | Solar Energy Property Tax Incentive — Recent Legislation |
| 2012/020 | Revenue & Taxation Code Section 69.5: Additional New Construction |
| 2014/005 | Builders Exclusion — Assessor Notification |
| 2014/037 | Active Solar Energy System New Construction Exclusion: Sunset Date Extension |
| 2017/042 | Construction in Progress |
| 2018/062 | New Construction Exclusion: Rain Water Capture System |
| 2019/041 | Summary of 2019 Property Tax Legislation |
| 2022/009 | Implementation of Proposition 19: Base Year Value Transfers |
| 2022/023 | Active Solar Energy Systems: Partnership Flip Transactions |
| 2022/049 | 2022 Property Tax Legislation |
| 2022/051 | Taxpayers' Rights Advocate Office Updated Information Sheets on Property Tax Savings Reflecting the Passage of Proposition 19 — Intergenerational Transfer Exclusions and Base Year Value Transfers for Persons Age 55 and Older or Disabled Persons |
| 2023/018 | California Code of Regulations Title 18, Public Revenues Property Tax Rules 462.520 and 462.540 |
| 2023/036 | Classification of Wireless Communication Towers |
| 2024/014 | Accessory Dwelling Units |
| 2024/031 | Active Solar Energy System New Construction Exclusion: Clarification of Sunset Date Extension |
Annotated Legal Opinions
Annotated legal opinions are summaries of the conclusions reached in selected legal rulings of California State Board of Equalization counsel.
The following legal opinions pertain to questions involving new construction.
| Annotated Legal Opinion | Title |
|---|---|
| 610.0000 et seq. | Newly Constructed Property |
California Consumer Price Index
Current and prior year inflation factors are available on the LTA webpage. Select the appropriate year and search for the California Consumer Price Index LTA or use the Topical Index to search by topic.