3010-3019 Definitions: Standard Applications

3010. GENERAL INFORMATION
Taxes resulting from supplemental assessment are in addition to other property taxes due, pursuant to Division 1, Chapter 3.5, Article 1-6, Revenue and Taxation Code sections 75-75.55, of the Revenue and Taxation Code. The definitions in this section apply except where the context or specific provisions require otherwise (Rev. & Tax. Code §75.1).

3011. SUPPLEMENTAL ROLL
The "supplemental roll" may be defined as a system of assessments that adjusts taxes when new taxable values are determined following a change in ownership of locally assessed real property or the completion of new construction on locally assessed real property (Rev. & Tax. Code §75.7).

3012. CURRENT ROLL
The "current roll" means the roll for the fiscal year during which the change in ownership or the completion of construction occurred (Rev. & Tax. Code §75.2).

EXAMPLE: During the 1996-97 fiscal year, the assessor determines that a supplemental assessment event occurred in October 1994. In this case, the current roll used in determining the applicable tax rate is the 1994-95 roll.

3013. ROLL BEING PREPARED
The roll for the fiscal year following the fiscal year in which the event occurs that leads to a supplemental assessment is designated "the roll being prepared" (Rev. & Tax. Code §75.3). Although it is mentioned here and in some escape assessment and correction statutes, the "roll being prepared" is not a physical entity capable of being inspected.

EXAMPLE:

EVENT DATES	CURRENT ROLL	ROLL BEING PREPARED
July 1, 2007 - Dec 31, 2007	2007 - 08
Jan 1, 2008 - June 30, 2008	2007 - 08	2008 - 09

3014. PROPERTY
For purposes of supplemental assessment, "property" means real property and manufactured homes subject to taxation on the secured roll, other than:

1) Fixtures that are normally valued as a separate appraisal unit from a structure; and,

2) Newly created taxable possessory interests, established by month-to-month agreements in publicly owned real property, having a full cash value of $50,000 or less (Rev. & Tax. Code §75.5).

Personal property, except for manufactured homes, is not subject to supplemental assessment (Rev. & Tax. Code §75.14). For a discussion of manufactured-home taxation, see Chapter 10000.

NOTE: The terms "secured" and "unsecured" are not used in assembling supplemental assessments. Security of the lien becomes an issue only after a supplemental tax becomes delinquent or when assessments are required to be prorated by provisions of Revenue and Taxation Code section 75.54(c) (M-3104).

3015. TRADE FIXTURE IMPROVEMENTS
A fixture is an appurtenance to land or improvements that is permanently affixed to property; it can include conveyor lines, ovens, built-in refrigerators, lighting fixtures, heavy machinery, and built-in cabinets.

Before August 1, 1987, the total activity involving deletions and additions of trade fixture improvements was supplementally assessed each year. Since that date, trade fixture improvements have been subject to supplemental assessments only upon a change in ownership or upon completion of new construction of a structure containing trade fixture improvements (Rev. & Tax. Code §75.15).

3016. CURRENT TAX RATE
For supplemental assessment purposes, the "current tax rate" is the rate applicable to the "current roll" as defined in Revenue and Taxation Code section 75.2 (Rev. & Tax. Code §75.4 and M-3012). If the tax rate for the "roll being prepared" is known, the rate shall be used with respect to the fiscal year to which it applies, rather than the current year's tax rate as defined in Revenue and Taxation Code section 75.4 (Rev. & Tax. Code §75.41(a)). For trade fixture improvements, the auditor may use the rate applicable to the year in which the report is filed. Doing this avoids the need to use two rates in calculating the bill for trade fixtures.

3017. FISCAL YEAR
"Fiscal year" means a year starting July 1 and ending June 30 (Rev. & Tax. Code §75.6).

3018. NEW BASE YEAR VALUE
The "new base year value" is the full cash value of property on the date it changes ownership or of new construction on the date it is completed (Rev. & Tax. Code §75.8), as determined by the assessor. "Base year value" is defined in Revenue and Taxation Code section 50 (Const., Art. XIIIA, §2).

3019. TAXABLE VALUE
"Taxable value" means the lesser of the base year full value adjusted upward for a given lien date (but no more than two percent in one year) or the full cash value for the same date, as determined by the assessor (Rev. & Tax. Code §75.9). After adjustment for any exemptions, net taxable value is the figure from which a tax is calculated.