…(a) In addition to the meaning ascribed to them in the Revenue and Taxation Code, the words “full value”, “full
cash value”, “cash value”, “actual value”, and “fair market value” mean the price at which a property, if exposed
for sale in the open market with a reasonable time for the seller to find a purchaser, would transfer for cash or its
equivalent under prevailing market conditions between parties who have knowledge of the uses to which the
property may be put, both seeking to maximize their gains and neither being in a position to take advantage of the
exigencies of the other.
When applied to real property, the words “full value”, “full cash value”, cash value”, “actual value” and “fair market
value” mean the price at which the unencumbered or unrestricted fee simple interest in the real property (subject
to any legally enforceable governmental restrictions) would transfer for cash or its equivalent under the conditions
set forth in the preceding sentence.
(b) When valuing real property (as described in paragraph (a) as the result of a change in ownership (as defined
in Revenue and Taxation Code, Section 60, et seq.) for consideration, it shall be rebuttably presumed that the
consideration valued in money, whether paid in money or otherwise, is the full cash value of the property. The
presumption shall shift the burden of proving value by a preponderance of the evidence to the party seeking to
overcome the presumption. The presumption may be rebutted by evidence that the full cash value of the property
is significantly more or less than the total cash equivalent of the consideration paid for the property. A significant
deviation means a deviation of more than 5% of the total consideration.
I know you’re well informed about this topic, but I’ve never heard anything about the previous owner’s assessment having any bearing on the new owner’s assessment. IOW, this should have nothing to do with the DVAP. Am I missing something?
It sounds to me like Pemeliza has a solid argument against this “fake” assessment. The property taxes should be based on the sales price, not on some value the Assessor’s office “wants” it to be.
