101-136

REVENUE AND TAXATION CODE
SECTION 101-136




101.  Unless the context otherwise requires, the general provisions
hereinafter set forth govern the construction of this division.



102.  Nothing in this division shall be construed to permit double
taxation.


103.  "Property" includes all matters and things, real, personal,
and mixed, capable of private ownership.



104.  "Real estate" or "real property" includes:
   (a) The possession of, claim to, ownership of, or right to the
possession of land.
   (b) All mines, minerals, and quarries in the land, all standing
timber whether or not belonging to the owner of the land, and all
rights and privileges appertaining thereto.
   (c) Improvements.



105.  "Improvements" includes:
   (a) All buildings, structures, fixtures, and fences erected on or
affixed to the land.
   (b) All fruit, nut bearing, or ornamental trees and vines, not of
natural growth, and not exempt from taxation, except date palms under
eight years of age.



106.  "Personal property" includes all property except real estate.



107.  "Possessory interests" means the following:
   (a) Possession of, claim to, or right to the possession of land or
improvements that is independent, durable, and exclusive of rights
held by others in the property, except when coupled with ownership of
the land or improvements in the same person. For the purposes of
this subdivision:
   (1) "Independent" means the ability to exercise authority and
exert control over the management or operation of the property or
improvements, separate and apart from the policies, statutes,
ordinances, rules, and regulations of the public owner of the
property or improvements. A possession or use is independent if the
possession or operation of the property is sufficiently autonomous to
constitute more than a mere agency.
   (2) "Durable" means for a determinable period with a reasonable
certainty that the use, possession, or claim with respect to the
property or improvements will continue for that period.
   (3) "Exclusive" means the enjoyment of a beneficial use of land or
improvements, together with the ability to exclude from occupancy by
means of legal process others who may interfere with that enjoyment.
For purposes of this paragraph, "exclusive use" includes the
following types of use in property:
   (A) Sole occupancy or use of property or improvements.
   (B) Use as a cotenant.
   (C) Concurrent use by a person who has a primary or prevailing
right to use property or improvements at any time.
   (D) Concurrent uses by persons making qualitatively different uses
of property or improvements.
   (E) Concurrent use by persons engaged in similar uses that
diminish the quantity or quality of the property or improvements.
   (F) Concurrent use that does not diminish the quantity or quality
of the property or improvements, if the number of those concurrent
use grants is restricted.
   A use of property or improvements that does not contain one of the
elements in subparagraphs (A) to (F), inclusive, shall be rebuttably
presumed to be a nonexclusive use.
   (b) Taxable improvements on tax-exempt land.
   Any possessory interest may, in the discretion of the county board
of supervisors, be considered as sufficient security for the payment
of any taxes levied thereon and may be placed on the secured roll.
   Leasehold estates for the production of gas, petroleum and other
hydrocarbon substances from beneath the surface of the earth, and
other rights relating to these substances which constitute
incorporeal hereditaments or profits a prendre, are sufficient
security for the payment of taxes levied thereon. These estates and
rights shall not be classified as possessory interests, but shall be
placed on the secured roll.
   If the tax on any possessory interest or leasehold estate for the
production of gas, petroleum and other hydrocarbon substances is
unpaid when any installment of secured taxes become delinquent, the
tax collector may use those collection procedures which are available
for the collection of assessments on the unsecured roll.
   If the tax on any possessory interest or leasehold estate for the
production of gas, petroleum and other hydrocarbon substances remains
unpaid at the time set for the declaration of default for taxes
carried on the secured roll, the possessory interest tax together
with any penalty and costs which may be accrued thereon while on the
secured roll shall be transferred to the unsecured roll.



107.1.  The full cash value of a possessory interest, when arising
out of a lease of exempt property, is the excess, if any, of the
value of the lease on the open market, as determined by the formula
contained in the case of De Luz Homes, Inc. v. County of San Diego
(1955), 45 Cal. 2d 546, over the present worth of the rentals under
said lease for the unexpired term thereof.
   A possessory interest taxable under the provisions of this section
shall be assessed to the lessee on the same basis or percentage of
valuation employed as to other tangible property on the same roll.
   This section applies only to possessory interests created prior to
the date on which the decision of the California Supreme Court in De
Luz Homes, Inc. v. County of San Diego (1955), 45 Cal. 2d 546,
became final. It does not, however, apply to any of such interests
created prior to that date that thereafter have been, or may
hereafter be, extended or renewed, irrespective of whether the
renewal or extension is provided for in the instrument creating the
interest.
   This section does not apply to leasehold estates for the
production of gas, petroleum and other hydrocarbon substances from
beneath the surface of the earth, and other rights relating to such
substances which constitute incorporeal hereditaments or profits a
prendre.


107.2.  The full cash value of leasehold estates in exempt property
for the production of gas, petroleum and other hydrocarbon substances
from beneath the surface of the earth, and all other taxable rights
to produce gas, petroleum and other hydrocarbon substances from
exempt property (all of which rights are hereinafter in this section
referred to as "such oil and gas interests"), is the value of such
oil and gas interests exclusive of the value of any royalties or
other rights to share in production from exempt property owned by any
tax-exempt entity, whether receivable in money or property and
whether measured by or based upon production or income or both.
   This section applies to such oil and gas interests created prior
to the date on which the decision in De Luz Homes, Inc. v. County of
San Diego (1955) 45 Cal. 2d 546, became final. This section does not,
however, apply to any of such oil and gas interests created prior to
such date which have been after such date or are hereafter extended
or renewed, unless such extension or renewal is pursuant to authority
in a contract, lease, statute, regulation, city charter, ordinance,
or other source, which authority permits no reduction of the rate of
royalty or other right to share in production on grounds of an
increase in the assessed valuation of such oil and gas interest.
Moreover, this section does not apply to any of such oil and gas
interests if the rate of royalties or other right to share in
production has, prior to the effective date of this section, been
reduced to adjust for the fact that certain assessors have valued
such oil and gas interests without excluding the value of said
royalties or other rights to share in production.



107.3.  The full cash value of leasehold estates in exempt property
for the production of gas, petroleum and other hydrocarbon substances
from beneath the surface of the earth and all other taxable rights
to produce gas, petroleum and other hydrocarbon substances from
exempt property (all of which rights are hereinafter in this section
referred to as "such oil and gas interests"), is the value of such
oil and gas interests, exclusive of the value of any royalties or
other rights to share in production from exempt property owned by any
tax-exempt entity, whether receivable in money or property and
whether measured by or based upon production or income or both.
   This section applies to:
   (a) Such oil and gas interests created prior to the date on which
the decision in De Luz Homes, Inc. v. County of San Diego (1955) 45
Cal. 2d 546, became final to which Section 107.2 of this code does
not apply because said interests were extended or renewed on or
before July 26, 1963.
   (b) Such oil and gas interests created on or after the date on
which said decision become final and on or before July 26, 1963.
   This section does not, however, apply to any of such oil and gas
interests extended or renewed after July 26, 1963, unless such
extension or renewal is pursuant to authority in a contract, lease,
statute, regulation, city charter, ordinance or other source which
authority permits no reduction of the rate of royalty or other right
to share in production upon the ground of an increase in the assessed
valuation of such oil and gas interest. Moreover, this section does
not apply to any of such oil and gas interests if the rate of
royalties or other right to share in production has, prior to the
effective date of this section, been reduced to adjust for the fact
that certain assessors have valued such oil and gas interests without
excluding the value of said royalties or other rights to share in
production.



107.4.  (a) For purposes of paragraph (1) of subdivision (a) of
Section 107, there is no independent possession or use of land or
improvements if that possession or use is pursuant to a contract that
includes, but is not limited to, a long-term lease, for the private
construction, renovation, rehabilitation, replacement, management, or
maintenance of housing for active duty military personnel or their
dependents, or both, if all of the following criteria are met:
   (1) The military housing constructed and managed by private
contractor is situated on a military facility under military control,
and the construction of that housing is performed under military
guidelines in the same manner as construction that is performed by
the military.
   (2) All services normally provided by a municipality are required
to be purchased from the military facility or a provider designated
by the military.
   (3) The private contractor is not given the right and ability to
exercise any significant authority and control over the management or
operation of the military housing, separate and apart from the rules
and regulations of the military.
   (4) The number of units, the number of bedrooms per unit, and the
unit mix are set by the military, and may not be changed by the
contractor without prior approval by the military.
   (5) Tenants are designated by a military housing agency.
   (6) Financing for the project is subject to the approval of the
military in its sole discretion.
   (7) Rents charged to military personnel or their dependents are
set by the military.
   (8) The military controls the distribution of revenues from the
project to the private contractor, and the private contractor is
allowed only a predetermined profit or fee for constructing the
military housing.
   (9) Evictions from the housing units are subject to the military
justice system.
   (10) The military prescribes rules and regulations governing the
use and occupancy of the property.
   (11) The military has the authority to remove or bar persons from
the property.
   (12) The military may impose access restrictions on the contractor
and its tenants.
   (13) Any reduction or, if that amount is unknown, the private
contractor's reasonable estimate of savings, in property taxes on
leased property used for military housing under the Military Housing
Privatization Initiative (10 U.S.C. Sec. 2871 et seq.) shall inure
solely to the benefit of the residents of the military housing
through improvements, such as a child care center provided by the
private contractor.
   (14) The military housing is constructed, renovated,
rehabilitated, remodeled, replaced, or managed under the Military
Housing Privatization Initiative, or any successor to that law.
   (b) This section shall not apply to a military housing unit
managed by a private contractor that is rented to a tenant who is an
unaffiliated member of the general public.
   (1) "Unaffiliated member of the general public" means a person who
is not a current member of the military. A housing unit rented to or
occupied by a person employed as management or maintenance personnel
for the military housing property shall not be considered to be a
unit rented to an unaffiliated member of the general public.
   (2) The private contractor shall annually notify the assessor by
February 15 of any housing units rented to unaffiliated members of
the general public as of the immediately preceding lien date. The
private contractor shall be responsible for any property taxes on
housing units rented to unaffiliated members of the general public.
   (c) For purposes of this section, "military facility under
military control" means a military base that restricts public access
to the military base.


107.6.  (a) The state or any local public entity of government, when
entering into a written contract with a private party whereby a
possessory interest subject to property taxation may be created,
shall include, or cause to be included, in that contract, a statement
that the property interest may be subject to property taxation if
created, and that the party in whom the possessory interest is vested
may be subject to the payment of property taxes levied on the
interest.
   (b) Failure to comply with the requirements of this section shall
not be construed to invalidate the contract. The private party may
recover damages from the contracting state or local public entity,
where the private party can show that without the notice, he or she
had no actual knowledge of the existence of a possessory interest
tax.
   The private party is rebuttably presumed to have no actual
knowledge of the existence of a possessory interest tax.
   In order to show damages, the private party need not show that he
or she would not have entered the contract but for the failure of
notice.
   (c) For purposes of this section:
   (1) "Possessory interest" means any interest described in Section
107.
   (2) "Local public entity" shall have the same meaning as that set
forth in Section 900.4 of the Government Code and shall include
school districts and community college districts.
   (3) "State" means the state and any state agency as defined in
Section 11000 of the Government Code and Section 89000 of the
Education Code.
   (4) "Damages" mean the amount of the possessory interest tax for
the term of the contract.



107.7.  (a) When valuing possessory interests in real property
created by the right to place wires, conduits, and appurtenances
along or across public streets, rights-of-way, or public easements
contained in either a cable franchise or license granted pursuant to
Section 53066 of the Government Code (a "cable possessory interest")
or a state franchise to provide video service pursuant to Section
5840 of the Public Utilities Code (a "video possessory interest"),
the assessor shall value these possessory interests consistent with
the requirements of Section 401. The methods of valuation shall
include, but not be limited to, the comparable sales method, the
income method (including, but not limited to, capitalizing rent), or
the cost method.
   (b) (1) The preferred method of valuation of a cable television
possessory interest or video service possessory interest by the
assessor is capitalizing the annual rent, using an appropriate
capitalization rate.
   (2) For purposes of this section, the annual rent shall be that
portion of that franchise fee received that is determined to be
payment for the cable possessory interest or video service possessory
interest for the actual remaining term or the reasonably anticipated
term of the franchise or license or the appropriate economic rent.
If the assessor does not use a portion of the franchise fee as the
economic rent, the resulting assessments shall not benefit from any
presumption of correctness.
   (c) If the comparable sales method, which is not the preferred
method, is used by the assessor to value a cable possessory interest
or video service possessory interest when sold in combination with
other property, including, but not limited to, intangible assets or
rights, the resulting assessments shall not benefit from any
presumption of correctness.
   (d) Intangible assets or rights of a cable system or the provider
of video services are not subject to ad valorem property taxation.
These intangible assets or rights include, but are not limited to:
franchises or licenses to construct, operate, and maintain a cable
system or video service system for a specified franchise term
(excepting therefrom that portion of the franchise or license which
grants the possessory interest); subscribers, marketing, and
programming contracts; nonreal property lease agreements; management
and operating systems; a workforce in place; going concern value;
deferred, startup, or prematurity costs; covenants not to compete;
and goodwill. However, a cable possessory interest or video service
possessory interest may be assessed and valued by assuming the
presence of intangible assets or rights necessary to put the cable
possessory interest or video service possessory interest to
beneficial or productive use in an operating cable system or video
service system.
   (e) If a change in ownership of a cable possessory interest or
video service possessory interest occurs, the person or legal entity
required to file a statement pursuant to Section 480, 480.1, or 480.2
shall, at the request of the assessor, provide as a part of that
statement the following, if applicable: confirmation of the sales
price, allocation of the sales price among the counties, and gross
revenue and franchise fee expenses of the cable system or video
service system by county. Failure to provide the statement
information shall result in a penalty as provided in Section 482,
except that the maximum penalty shall be five thousand dollars
($5,000).


107.8.  (a) For purposes of applying subdivision (a) of Section 107
to a lease-leaseback of publicly owned real property, the possession
of, claim to, or right to the possession of, land or improvements
pursuant to a lease is not independent if the lessee (1) is obligated
simultaneously to sublease the property to the public owner of the
property for all or substantially all of the lease period, (2) may
not exercise authority and exert control over the management or
operation of the property separate and apart from the policies,
statutes, ordinances, rules and regulations of the public owner, (3)
provides as part of the sublease that the public owner has the right
to repurchase all of the lessee's rights in the lease, and (4) cannot
receive rent or other amounts from the public owner under the
sublease (including any amounts due with respect to any repurchase)
the present value of which, at the time the lease is entered into,
exceeds the present value of the rent or other amounts payable by the
lessee under the lease.
   (b) For purposes of subdivision (a), the term "all or
substantially all" means at least 85 percent.



107.9.  (a) In addition to any taxable real property interests that
an operator of certificated aircraft has at a publicly owned airport
that are interests stated in a written agreement for terminal, cargo,
hangar, automobile parking lot, storage and maintenance facilities
and other buildings and the land thereunder leased in whole or in
part by an airline (hereafter the "excluded possessory interests"),
there exists an additional taxable possessory interest conferred upon
an operator of certificated aircraft at a publicly owned airport.
   (b) Notwithstanding any other provision of law relating to
valuation, for assessments for the 1998-99 fiscal year, and each
fiscal year thereafter, (1) regular assessments of all taxable real
property interests of the operator of certificated aircraft at a
publicly owned airport, other than the excluded possessory interests,
and (2) timely escape assessments upon the real property interests
governed by this section issued on or after April 1, 1998, pursuant
to Sections 531 and 531.2, shall be presumed to be valued and
assessed at full cash value for these interests only if the assessor
uses the following direct income approach in capitalizing net
economic rent:
   (1) The economic rent shall be computed by using one-half of the
landing fee rate used to calculate the 1996-97 assessment for real
property interests, other than excluded possessory interests,
multiplied by the aggregate weight of landings by the operator for
the airport's fiscal year prior to the 1996 lien date. The one-half
of the landing fee rate used to compute the 1996-97 economic rent
shall be annually adjusted in accordance with the percentage change,
rounded to the nearest one-thousandth of 1 percent, from October of
the prior fiscal year to October of the current fiscal year in the
California Consumer Price Index for all items, as determined by the
California Department of Industrial Relations, except that in no
instance shall this adjusted rate exceed one-half of the airport's
actual landing fee rate for the last full fiscal year. The economic
rent shall also be adjusted in proportion to the increase or decrease
in the aggregate weight of landings by the operator for the last
full fiscal year at each airport in the taxing county. In the case of
a new operator, the economic rent shall be determined by reference
to a similarly situated operator.
   (2) The expense ratio shall be the ratio used by each county for
the 1996 lien date.
   (3) The capitalization rates shall not exceed, or be less than,
the rates used by each county for the 1996 lien date, except that
they shall be annually adjusted in proportion to the changes in the
"Going-in Cap Rate; All Types" as published by the Real Estate
Research Corporation, and, as so adjusted, shall be rounded to the
nearest one-half percent. If this information ceases to be published
by the Real Estate Research Corporation or the format significantly
changes, a publication or adjustment agreed to by the airlines and
the taxing counties shall be substituted.
   (4) The term of possession for each operator shall be the term
used by each county to calculate the 1996-97 assessment, but shall
not exceed a maximum term of 20 years. Subject to paragraphs (1) to
(3), inclusive, of subdivision (b) of Section 61 as applied to
interests subject to this subdivision, changes of ownership and term
of possessions shall be determined as follows:
   (A) In the case of the creation, renewal, extension or assignment
of an operating agreement or permit, without the concurrent creation,
renewal, extension or assignment of a terminal, hangar, or cargo
facility agreement, no change in ownership will be presumed to have
occurred and the term of possession shall be the term used by each
county for their 1996-97 assessments, not to exceed a maximum of 20
years.
   (B) In the case of the creation, renewal, extension or assignment
of a terminal, hangar, or cargo facility agreement, a change in
ownership will be presumed to have occurred and the term of
possession shall be the actual term stated in the written terminal,
hangar, or cargo facility agreement, provided that the term shall not
be less than 10 years or exceed 15 years.
   (C) In the case of any operator without a terminal, hangar, or
cargo facility agreement, the actual creation, renewal, extension or
assignment of a written operating agreement or permit shall
constitute a change in ownership and the actual term of the operating
agreement for that carrier will be used, provided that the term
shall not be less than 5 years or exceed more than 15 years.
   (5) Nothing in this subdivision is intended to apply to the
determination of a term of possession for a possessory interest in an
excluded possessory interest.
   (c) Notwithstanding subdivision (b), in a county in which 1995-96
landing fees were not used to calculate the 1996-97 assessment, the
county shall benefit from the presumption of correctness set forth in
subdivision (b) only if the assessor uses the following direct
income approach in capitalizing net economic rent:
   (1) The calculations required in subdivision (b) are performed
using the assessment that would have been derived in the 1996-97
fiscal year had the assessor followed the methodology set forth in
subdivision (b) using actual airport data for the 1995-96 fiscal
year.
   (2) If any portion of the airport's landing fee rate for the
1995-96 fiscal year was in dispute and resulted in the creation of an
escrow account for a portion of the landing fees paid, that portion
of the landing fee rate attributable to the escrowed funds shall not
be included in the calculations performed in paragraph (1). However,
if the dispute is resolved, in whole or in part, in favor of the
publicly owned airport and all or a portion of the escrowed funds are
released to the airport, the assessor shall, without regard to any
other statutorily imposed time limitation, be entitled to recalculate
the assessments required by this subdivision using an adjusted
landing fee rate that reflects a final decision on the disposition of
escrowed funds to produce escape assessments for all affected years.
   (d) Value shall be determined as follows:
   (1) Economic rent shall be calculated by applying the expense
ratio described in paragraph (2) of subdivision (b) to reduce gross
income determined pursuant to paragraph (1) of subdivision (b) or (c)
and paragraph (2) of subdivision (c) to arrive at an amount that
shall be deemed to be equivalent to economic rent.
   (2) Economic rent, as so determined, shall be capitalized for the
term provided for in paragraph (4) of subdivision (b) at the
capitalization rate determined in accordance with paragraph (3) of
subdivision (b).
   (e) Assessments under this section shall not exceed the factored
base year value established under Article XIII A of the California
Constitution. However, adjustments made in aggregate landing weights
under this section are deemed to be a valid basis for adjusting the
base year value to the extent of the percentage change in landed
weights for purposes of Article XIII A of the California
Constitution. Pursuant to Section 65.1, adjustments in aggregate
landing weights shall not be considered a change in ownership or a
basis for applying a new term of possession in the airlines'
preexisting real property interest.



108.  "State-assessed property" means all property required to be
assessed by the board under Section 19 of Article XIII of the
Constitution and which is subject to local taxation.



109.  "Roll" means the entire assessment roll. The "secured roll" is
that part of the roll containing State assessed property and
property the taxes on which are a lien on real property sufficient,
in the opinion of the assessor, to secure payment of the taxes. The
remainder of the roll is the "unsecured roll." The "local roll" is
those parts of the secured and unsecured roll containing property
which it is the county assessor's duty to assess. The "board roll" is
that part of the secured roll containing State assessed property.



109.5.  "Machine-prepared roll" means an assessment roll prepared by
electronic data-processing equipment, bookkeeping machine,
typewriter, or other mechanical device, and such a roll may be
displayed in printed form, on microfilm, or by any other means that
would make it readily available to the public in a legible form. When
so prepared by the assessor, the roll need not contain provision for
tax extensions, but the contents thereof may be reproduced by the
auditor with provision for tax extensions. Upon such reproduction of
the assessment data, the document with provision for tax extensions
shall constitute the roll without prejudice to the roll status of the
document without such provision.



109.6.  With the consent of the auditor and tax collector and
approval of the board of supervisors, data normally appearing on an
extended roll and abstract list may be retained in electronic
data-processing equipment and no physical document need be prepared.
   Notwithstanding any other provisions of this code, where no
physical document of the extended roll and abstract list is prepared,
all entries required to be made on the extended roll and abstract
list shall be entered into the electronic data-processing records.
   The data shall be so stored that it can be made readily available
to the public in an understandable form.


110.  (a) Except as is otherwise provided in Section 110.1, "full
cash value" or "fair market value" means the amount of cash or its
equivalent that property would bring if exposed for sale in the open
market under conditions in which neither buyer nor seller could take
advantage of the exigencies of the other, and both the buyer and the
seller have knowledge of all of the uses and purposes to which the
property is adapted and for which it is capable of being used, and of
the enforceable restrictions upon those uses and purposes.
   (b) For purposes of determining the "full cash value" or "fair
market value" of real property, other than possessory interests,
being appraised upon a purchase, "full cash value" or "fair market
value" is the purchase price paid in the transaction unless it is
established by a preponderance of the evidence that the real property
would not have transferred for that purchase price in an open market
transaction. The purchase price shall, however, be rebuttably
presumed to be the "full cash value" or "fair market value" if the
terms of the transaction were negotiated at arms length between a
knowledgeable transferor and transferee neither of which could take
advantage of the exigencies of the other. "Purchase price," as used
in this section, means the total consideration provided by the
purchaser or on the purchaser's behalf, valued in money, whether paid
in money or otherwise. There is a rebuttable presumption that the
value of improvements financed by the proceeds of an assessment
resulting in a lien imposed on the property by a public entity is
reflected in the total consideration, exclusive of that lien amount,
involved in the transaction. This presumption may be overcome if the
assessor establishes by a preponderance of the evidence that all or a
portion of the value of those improvements is not reflected in that
consideration. 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.
   (c) For real property, other than possessory interests, the change
of ownership statement required pursuant to Section 480, 480.1, or
480.2, or the preliminary change of ownership statement required
pursuant to Section 480.4, shall give any information as the board
shall prescribe relative to whether the terms of the transaction were
negotiated at "arms length." In the event that the transaction
includes property other than real property, the change in ownership
statement shall give information as the board shall prescribe
disclosing the portion of the purchase price that is allocable to all
elements of the transaction. If the taxpayer fails to provide the
prescribed information, the rebuttable presumption provided by
subdivision (b) shall not apply.
   (d) Except as provided in subdivision (e), for purposes of
determining the "full cash value" or "fair market value" of any
taxable property, all of the following shall apply:
   (1) The value of intangible assets and rights relating to the
going concern value of a business using taxable property shall not
enhance or be reflected in the value of the taxable property.
   (2) If the principle of unit valuation is used to value properties
that are operated as a unit and the unit includes intangible assets
and rights, then the fair market value of the taxable property
contained within the unit shall be determined by removing from the
value of the unit the fair market value of the intangible assets and
rights contained within the unit.
   (3) The exclusive nature of a concession, franchise, or similar
agreement, whether de jure or de facto, is an intangible asset that
shall not enhance the value of taxable property, including real
property.
   (e) Taxable property may be assessed and valued by assuming the
presence of intangible assets or rights necessary to put the taxable
property to beneficial or productive use.
   (f) For purposes of determining the "full cash value" or "fair
market value" of real property, intangible attributes of real
property shall be reflected in the value of the real property. These
intangible attributes of real property include zoning, location, and
other attributes that relate directly to the real property involved.



110.1.  (a) For purposes of subdivision (a) of Section 2 of Article
XIII A of the California Constitution, "full cash value" of real
property, including possessory interests in real property, means the
fair market value as determined pursuant to Section 110 for either of
the following:
   (1) The 1975 lien date.
   (2) For property which is purchased, is newly constructed, or
changes ownership after the 1975 lien date, either of the following:
   (A) The date on which a purchase or change in ownership occurs.
   (B) The date on which new construction is completed, and if
uncompleted, on the lien date.
   (b) The value determined under subdivision (a) shall be known as
the base year value for the property.
   (c) Notwithstanding Section 405.5, for property which was not
purchased or newly constructed or has not changed ownership after the
1975 lien date, if the value as shown on the 1975-76 roll is not its
1975 lien date base year value and if the value of that property had
not been determined pursuant to a periodic reappraisal under Section
405.5 for the 1975-76 assessment roll, a new 1975 lien date base
year value shall be determined at any time until June 30, 1980, and
placed on the roll being prepared for the current year; provided,
however, that for any county over four million in population the
board of supervisors may adopt a resolution granting the assessor of
that county until June 30, 1981, the authority to determine those
values. Regardless of the foregoing restrictions, property that
escaped taxation for 1975 and was not merely underassessed for that
year, shall be added to the roll in any year in which the escape is
discovered at its 1975 base year value indexed to reflect inflation
as provided in subdivision(f). In determining the new base year value
for that property, the assessor shall use only those factors and
indicia of fair market value actually utilized in appraisals made
pursuant to Section 405.5 for the 1975 lien date. The new base year
values shall be consistent with the values established by reappraisal
for the 1975 lien date of comparable properties which were
reappraised pursuant to Section 405.5 for the fiscal year. In the
event that determination is made, no escape assessment may be levied
and the newly determined "full cash value" shall be placed on the
roll for the current year only; provided, however, the preceding
shall not prohibit a determination which is made prior to June 30 of
a fiscal year from being reflected on the assessment roll for the
current fiscal year.
   (d) If the value of any real property as shown on the 1975-76 roll
was determined pursuant to a periodic appraisal under Section 405.5,
that value shall be the 1975 lien date base year value of the
property.
   (e) As used in subdivisions (c) and (d), a parcel of property
shall be presumed to have been appraised for the 1975-76 fiscal year
if the assessor's determination of the value of the property for the
1975-76 fiscal year differed from the value used for purposes of
computing the 1974-75 fiscal year tax liability for the property, but
the assessor may rebut that presumption by evidence that,
notwithstanding the difference in value, that parcel was not
appraised pursuant to Section 405.5 for the 1975-76 fiscal year.
   (f) For each lien date after the lien date in which the full cash
value is determined pursuant to this section, the full cash value of
real property, including possessory interests in real property, shall
be adjusted by an inflation factor, which shall be determined as
provided in subdivision (a) of Section 51.



110.5.  "Full value" means fair market value, full cash value, or
such other value standard as is prescribed by the Constitution or in
this code under the authorization of the Constitution.



115.  "Interest" in any property includes any legal or equitable
interest.


116.  "Map" includes plat.



117.  "Lien date" is the time when taxes for any fiscal year become
a lien on property.



118.  "Assessment year" means the period beginning with a lien date
and ending immediately prior to the succeeding lien date for taxes
levied by the same agency.



119.  "County board" means the county board of supervisors when
sitting as the county board of equalization.



121.  "Taxing agency" includes the State, county, and city. "Taxing
agency" also includes every district that assesses property for
taxation purposes and levies taxes or assessments on the property so
assessed.


122.  "Revenue district" includes every city and district for which
the county officers assess property and collect taxes or assessments.



123.  "Amount of defaulted taxes" on property means the sum of the
following amounts:
   (a) The amount of taxes which were a lien on the real estate at
the time of the declaration of default.
   (b) All other unpaid taxes of every description which were a lien
on the property for the year of declaration of default and for each
year since the declaration of default, as shown on the delinquent
rolls for which the time of the declaration of default is past, or,
if the property was not assessed for any year, which would be shown
on such delinquent roll if it had been assessed in that year; except
that the unpaid taxes which would be shown on such delinquent roll if
the property had been assessed in any such year shall not be paid if
the property was not assessed for any year because of having been
acquired by the state or other public agency other than by tax deed.
The amount of taxes for any year not assessed shall be based on the
valuation required to be made by the assessor on redemption of
unassessed property.


124.  "Current taxes" means taxes which are a lien on property, but
which are not included in "amount of defaulted taxes" except that,
between a lien date and the time in the same calendar year when
property is declared to be tax-defaulted, the taxes becoming a lien
on this lien date in such calendar year are not yet "current taxes."




125.  "Current roll" means the roll containing the property on which
current taxes are a lien.



126.  "Tax-defaulted property" is real property which is subject to
a lien for taxes which, by operation of law and by declaration of the
tax collector, are in default and from which the lien of the taxes
for which it was declared tax-defaulted has not been removed. Where
used in this division or in any other provision of law,
   (a) Any reference to property tax sold or tax deeded to the state
shall refer to tax-defaulted property.
   (b) Any reference to the sale to the state shall refer to the
declaration of default.
   (c) Any reference to the deeding to the state shall refer to
property which is subject to a power of sale for nonpayment of taxes.




128.  "Assessor" means the assessing officer of a county, by
whatever title he may be known.



129.  "Business inventories" shall include goods intended for sale
or lease in the ordinary course of business and shall include raw
materials and work in process with respect to such goods. "Business
inventories" shall also include animals and crops held primarily for
sale or lease, or animals used in the production of food or fiber and
feed for such animals.
   "Business inventories" shall not include any goods actually leased
or rented on the lien date nor shall "business inventories" include
business machinery or equipment or office furniture, machines or
equipment, except when such property is held for sale or lease in the
ordinary course of business. "Business inventories" shall not
include any item held for lease which has been or is intended to be
used by the lessor prior to or subsequent to the lease. "Business
inventories" shall not include goods intended for sale or lease in
the ordinary course of business which cannot be legally sold or
leased in this state. If goods which cannot be legally sold or leased
are not reported by the taxpayer pursuant to Section 441, it shall
be conclusively presumed that the value of the goods when discovered
is the value of the goods on the preceding lien date.
   "Business inventories" shall also include goods held by a licensed
contractor and not yet incorporated into real property.



130.  (a) "Vessel" includes every description of watercraft used or
capable of being used as a means of transportation on water, but does
not include aircraft.
   (b) "Documented vessel" means any vessel which is required to have
and does have a valid marine document issued by the Bureau of
Customs of the United States or any federal agency successor thereto,
except documented yachts of the United States, or is registered
with, or licensed by, the Department of Motor Vehicles. "Documented
vessel" does not include any vessel exempt from taxation under
subdivision (l) of Section 3 of Article XIII of the Constitution of
the State of California.
   (c) "Vessel of the United States" means a documented vessel, that
is, a vessel registered, enrolled and licensed, or licensed under the
laws of the United States, except documented yachts of the United
States.
   (d) "Port of documentation" means the home port of a vessel as
shown in the marine document in force and issued to the owner of such
vessel by the Bureau of Customs of the United States or any federal
agency successor thereto.
   (e) "Marine document" includes registry, enrollment and license,
and license.
   (f) "In this state" means within the exterior limits of the State
of California, and includes all territory within these limits owned
by, or ceded to, the United States of America.
   (g) "Natural resources" consist of both the living resources of
the sea and the mineral and other nonliving resources of the seabed
and subsoil together with living organisms belonging to sedentary
species, which are organisms which, at the harvestable stage, either
are immobile on or under the seabed or are unable to move except in
constant physical contact with the seabed or the subsoil.
   (h) "Oceanographic research vessel" means a vessel which the
secretary of the department in which the United States Coast Guard is
operating, or his successor, finds is an oceanographic research
vessel under the laws of the United States.


134.  "Unsecured property" is property:
   (a) The taxes on which are not a lien on real property sufficient,
in the opinion of the assessor, to secure payment of the taxes.
   (b) The taxes on which were secured by real property on the lien
date and which property was later acquired by the United States, the
state, or by any county, city, school district or other public entity
and the taxes required to be transferred to the unsecured roll
pursuant to Article 5 (commencing with Section 5081) of Chapter 4 of
Part 9.


135.  (a) "Assessed value" shall mean 25 percent of full value to
and including the 1980-81 fiscal year, and shall mean 100 percent of
full value for the 1981-82 fiscal year and fiscal years thereafter.
   (b) "Tax rate" shall mean a rate based on a 25 percent assessment
ratio and expressed as dollars, or fractions thereof, for each one
hundred dollars ($100) of assessed valuation to and including the
1980-81 fiscal year, and shall mean a rate expressed as a percentage
of full value for the 1981-82 fiscal year and fiscal years
thereafter.
   (c) Whenever this code requires comparison of assessed values, tax
rates or property tax revenues for different years, the assessment
ratios and tax rates shall be adjusted as necessary so that the
comparisons are made on the same basis and the same amount of tax
revenues would be produced or the same relative value of an exemption
or subvention will be realized regardless of the method of
expressing tax rates or the assessment ratio utilized.
   (d) For purposes of expressing tax rates on the same basis, a tax
rate based on a 25 percent assessment ratio and expressed in dollars,
or fractions thereof, for each one hundred dollars ($100) of
assessed value may be multiplied by a conversion factor of
twenty-five hundredths of 1 percent to determine a rate comparable to
a rate expressed as a percentage of full value; and, a rate
expressed as a percentage of full value may be multiplied by a factor
of 400 to determine a rate comparable to a rate expressed in
dollars, or fractions thereof, for each one hundred dollars ($100) of
assessed value and based on a 25 percent assessment ratio.



136.  Whenever any taxes or assessments are entered on the roll
under any provision of law, such taxes or assessments shall,
notwithstanding any other provision of law to the contrary, be
subject to all provions of this division.