Wasn a law passed recently that forbids the Assessor from adding Assessment bonds to sales prices?
A new restriction was recently imposed, but it does not forbid the addition of bond debt to sales prices, except under very specific (and experience tells us, quite rare) circumstances. In 1998, Revenue & Taxation Code, Section 110(b) was amended to add a ‘rebuttable presumption’ that the improvements financed by an assessment bond are actually included in the total consideration paid for property unless the Assessor can be prove otherwise. In other words, the Assessor’s Office can only add the value of any outstanding assessment bond balance to the assessment of a property if the Assessor has clear market evidence indicating that the consideration paid by the buyer did not adequately reflect the bond debt. The new text to R&T 110 (b) reads: R&T 110(b) [portion of] ” There is a rebuttable presumption that the value of improvements financed by the proceeds of an assessment resulting in a lien imposed on the property by a public entity is reflected in the total consideration, exclusive o
