Assessor Terminology
and Special Topics
The duties of the Marin County Assessor-Recorder’s Office
are mandated by the California State Legislature and the California State Board
of Equalization. Since the passage of Proposition 13 (Prop 13) in 1978 a
vocabulary and set of procedures has developed over the years to facilitate the
implementation of these duties.
Terminology
The terms listed and defined here are used commonly in the
assessment of property for property tax purposes. You may also visit our
office, email, or telephone us with any questions.
Adjusted
Base Year Value The property’s base year value adjusted by an
inflation factor, not to exceed two percent per year. Also known as ‘factored
base year value.’
Appeal The
formal request to have an assessment heard by the Assessment Appeals Board. The
property owner will submit a completed Application for Changed Assessment to
the Clerk of the Board and the Clerk will notify the property owner when the
hearing has been scheduled.
Assessor
Parcel Number An identification number for a specific property
used by the Assessor’s office.
Assessment
Roll The official list of all assessable property in
the county.
Assessed Value The
value of a property on the Assessor’s Roll used to calculate the 1% property tax
assessment.
Base Year
Value The property’s full cash value as of the date of
the latest change in ownership or completion of new construction.
Factored
Base Year Value The property’s base year value adjusted by an
inflation factor, not to exceed two percent per year. Also know as ‘Adjusted
Base Year Value.’
Full Cash
Value The amount of cash or its equivalent which the
property would bring if exposed for sale in the open market. Also known as
‘market value’ or ‘fair market value.’
Informal Assessment
Review A request from a property owner to have their assessed value
reviewed. These requests are made by submitting a completed Informal Assessment
Review form, sending a letter to the Assessor Office, or talking to the
valuation staff. The lien date assessed value will be compared to the current
market value and if the current market value is lower, the assessment will be
temporarily reduced.
Lien Date The
date a lien (a form of security interest) arises on real property to protect
the municipality’s right to payment of taxes. Annually the property tax lien
and valuation of property is determined as of 12:01 a.m. on January 1.
Property Tax
Rate Proposition 13 limits the general property tax rate
to one (1) percent of the assessed value. The property tax bill will include
any bonds approved by the voters and other special parcel assessments.
Secured
Assessment A lien is attached to real property and therefore
the tax assessment is ‘secured’ by the real property.
Supplemental
Assessment An assessment on the change in value between the annual assessment
roll value and the reappraised value for new construction or a change in
ownership, prorated monthly.
Tax Rate
Area An area within the county that is taxed at a
particular rate, usually resulting from the number of public services in the
area (e.g. fire and police protection). The differences in the number of
public services in the area result in different tax rate areas throughout the
county.
Transfer
Date Typically it is the recorded date of a sale
or transfer of property ownership interest.
Unsecured
Assessment A lien that is not attached to real property.
Use Code An
internal code used by the Assessor’s Office to indicate how a property is being
used. This code is for assessment purposes only.
Value
Decline A temporary reduction in the assessed
value due to changes in the market. Assessable property in California must be
assessed at the factored base year value or the current market value, whichever
is lower. Proposition 8 (Prop 8) was passed in 1978 to allow assessor’s to
temporarily reduce the assessed values of property.
Special Topics
Disaster
Relief Revenue and Taxation Code section 170
provides that if a major calamity such as fire, earthquake, or flooding damages
or destroys your property, you may be eligible for property tax relief. To
qualify for property tax relief, you must file a claim within twelve (12)
months from the date of the damage or destruction. Damage loss must be $10,000
or more of the taxable property’s full cash value.
This
property tax relief is available to owners of real property, business equipment
and fixtures, orchards or other agricultural groves, and to owners of
aircrafts, boats, and certain mobilehomes – it is not available to property
that is not assessable, such as state licensed mobilehomes or household
furnishings. Please see our Assessor Forms.
Prop 8
(Decline Value) California property tax law requires the
assessor to value property each year as of lien date, January 1st.
Proposition 8 amended the constitution to allow a temporary reduction in
assessed value when real property suffers a decline in value. A decline in
value occurs when the current market value of real property is less than the
current assessed factored base year value on January 1.
Real
property may decline in market value from one lien date to the next lien date;
however, it will not benefit from a lower assessment unless its market value
falls below the current assessed value.
When
real property is placed in a ‘decline’ status, the assessor will review the
assessment annually and adjust it up or down until the current market value
exceeds the original base year value plus inflation factors. When this occurs,
the original base year value plus inflation factors will be restored on the
assessment roll. This restoration from a market value to the factored base
year value often increases the value in excess of 2% for that year. The
increases in value beyond 2% per year are permitted under Section 51 of the
California Revenue and Taxation Code.
