(a) In addition to the meaning ascribed to
them in the Revenue and Taxation Code, the words "full value", "full cash
value", "cash value", "actual value", and "fair market value" mean the price at
which a property, if exposed for sale in the open market with a reasonable time
for the seller to find a purchaser, would transfer for cash or its equivalent
under prevailing market conditions between parties who have knowledge of the
uses to which the property may be put, both seeking to maximize their gains and
neither being in a position to take advantage of the exigencies of the other.
When applied to real property, the words "full value", "full
cash value", "cash value", "actual value" and "fair market value" mean the
price at which the unencumbered or unrestricted fee simple interest in the real
property (subject to any legally enforceable governmental restrictions) would
transfer for cash or its equivalent under the conditions set forth in the
preceding sentence.
(b) When
valuing real property (as described in paragraph (a)) as the result of a change
in ownership (as defined in Revenue and Taxation Code, Section
60,
et seq.) for consideration, it shall be rebuttably presumed that the
consideration valued in money, whether paid in money or otherwise, is the full
cash value of the property. The presumption shall shift the burden of proving
value by a preponderance of the evidence to the party seeking to overcome the
presumption. The presumption may be rebutted by evidence that the full cash
value of the property is significantly more or less than the total cash
equivalent of the consideration paid for the property. A significant deviation
means a deviation of more than 5% of the total consideration.
(c) The presumption provided in this section
shall not apply to:
(1) The transfer of any
taxable possessory interest.
(2)
The transfer of real property when the consideration is in whole, or in part,
in the form of ownership interests in a legal entity (e.g., shares of stock) or
the change in ownership occurs as the result of the acquisition of ownership
interests in a legal entity.
(3)
The transfer of real property when the information prescribed in the change in
ownership statement is not timely provided.
(d) If a single transaction results in a
change in ownership of more than one parcel of real property, the purchase
price shall be allocated among those parcels and other assets, if any,
transferred based on the relative fair market value of each.
Notes
Cal. Code Regs. Tit. 18, §
2
1. Amendment
filed 12-26-75; effective thirtieth day thereafter (Register 75, No.
52).
2. Amendment filed 8-21-85; effective thirtieth day thereafter
(Register 85, No. 34).
3. Amendment filed 8-26-91; operative 9-25-91
(Register 91, No. 52).
4. Editorial correction of subsection (b)
(Register 2002, No. 3).
Note: Authority cited: Section
15606,
Government Code. Reference: Sections
110,
110.1,
401,
Revenue and Taxation Code; Carlson v. Assessment Appeals Board No. 1 (1985) 167
Cal.App.3d 1004; Dennis v. County of Santa Clara (1989) 215 Cal.App.3d
1019.
1. Amendment filed
12-26-75; effective thirtieth day thereafter (Register 75, No. 52).
2. Amendment filed 8-21-85; effective thirtieth day thereafter (Register 85,
No. 34).
3. Amendment filed 8-26-91; operative 9-25-91 (Register
91, No. 52).
4. Editorial correction of subsection (b) (Register
2002, No. 3).
