California Revenue and Taxation Code

§ 423

RTC § 423 Effective Jan 1, 2004Div. 1 · Part 2 · Ch. 3 · Art. 1.5

Statute text

Except as provided in Sections 423.7 and 423.8, when valuing enforceably restricted open-space land, other than land used for the production of timber for commercial purposes, the county assessor shall not consider sales data on lands, whether or not enforceably restricted, but shall value these lands by the capitalization of income method in the following manner:

(a)The annual income to be capitalized shall be determined as follows:

(1)Where sufficient rental information is available the income shall be the fair rent which can be imputed to the land being valued based upon rent actually received for the land by the owner and upon typical rentals received in the area for similar land in similar use, where the owner pays the property tax. Any cash rent or its equivalent considered in determining the fair rent of the land shall be the amount for which comparable lands have been rented, determined by average rents paid to owners as evidenced by typical land leases in the area, giving recognition to the terms and conditions of the leases and the uses permitted within the leases and within the enforceable restrictions imposed.

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Legislative history

Amended by Stats. 2003, Ch. 471, Sec. 13. Effective January 1, 2004.