Property Tax Alert: California

October 2006

If funding is available, the California State Board of Equalization (SBE) must conduct a study to obtain and analyze data to update information used to develop property tax valuation factors annually published by the SBE that are applied to nonproduction computers, semiconductor manufacturing equipment, and biopharmaceutical equipment and fixtures. The agency must conduct the study in consultation with the California Assessors' Association and representatives of the computer, semiconductor, and biopharmaceutical industries. The SBE can conduct the study only if funds are appropriated by the Legislature to the Board for that purpose during the 2005-06 Regular Session. Values determined by using valuation factors resulting from the study shall be rebuttably presumed to be the full cash value of the equipment. The presumption will not apply to a tax year if the information upon which the factors are based was last reviewed more than six years before the lien date for that tax year.

Please contact Rash & Associates for more information.