Ways to Save on your Taxes

Builder's Exclusion

The Builder's Exclusion allows certain types of new construction to be excluded from supplemental tax assessments. These parcels must be intended for resale, and not rented, leased, occupied or used for any purpose other than a model home.

Effective January 1, 2006, properties meeting all of the conditions below are automatically excluded and their owners are not required to file a claim for this exclusion with the Assessor:

• The property is subdivided into five or more parcels in accordance with the Subdivision Map Act
• A map describing the parcels has been recorded
• Zoning regulations that are applicable to the parcels or building permits for the parcels require that, except for parcels dedicated for public use, single-family residences will be constructed on the parcels

Owners of properties that do not meet the above criteria must apply for the Builder's Exclusion by filing a claim with the Assessor within 30 days of starting construction. For purposes of this filing, the start of construction is defined as site preparation for a subdivision or, in the case of a single lot development, laying of the structure's foundation.

Once a property has been approved for exclusion, the owner is responsible for notifying the Assessor within 45 days if the property changes ownership, is rented or leased, or if it is occupied or used as anything other than a model home. Failure to notify us of any of these events within 45 days of when they occur makes the owner liable for a penalty of the greater of $100 or 10 percent of the current tax bill for the property; the penalty cannot exceed $2,500 (see Section 482 of the California Revenue & Taxation Code).

 

If you are interested in applying for this exclusion, please download the appropriate claim form below:

Download the Builder's Exclusion Application (PDF: 12 kB)

For more information, or for assistance completing and submitting the form, please visit our offices or contact us.