New Construction

What Does The Assessor Consider New Construction?
Section 70 of the California R&T code defines new construction as:
Any addition to real property, whether land or improvements, including fixtures, since the last lien date. Any alteration of land or of any improvement, including fixtures, since the last lien date that constitutes a major rehabilitation thereof or that converts the property to a different use. Any rehabilitation, renovation, or modernization that converts an improvement or fixture to the substantial equivalent of a new improvement or fixture is a major rehabilitation of that improvement or fixture.
 
If you build a structure, (i.e. a house, barn, garage, etc.) this will typically increase the value of the property. California statutes refer to such structures as improvements. The Assessor is required to add the improvement value to your properties tax value for the coming tax year and a supplemental tax bill is issued.
See Supplemental Tax Bills for more information.
Additions to existing structures also qualify as new construction. Since new construction typically increases the value of a property, the Assessor must add the value of the addition. The improvement value is added to your properties tax value for the coming tax year and a supplemental tax bill is issued.
See Supplemental Tax Bills for more information.
Improvements typically need maintenance and repair to keep them functioning as intended. Typical maintenance items are not considered to be assessable when done individually such as painting, re-roofing, or replacing an HVAC unit. However when they are all done together they may constitute a rehabilitation and would be assessable as new construction.
A complete rehabilitation or major remodeling of a property, which makes it substantially the equivalent of new or changes the use of the property, is considered new construction and does require reappraisal. Only the value the rehabilitation adds will be added to your properties tax value for the coming tax year and a supplemental tax bill is issued.
See Supplemental Tax Bills for more information.