Why are Possessory Interests assessed on the Unsecured Roll?
Possessory Interests are normally assessed on the Unsecured Tax Roll because the property rights being assessed are not owned by the assessee and cannot provide security for the taxes owed. In other words, the county cannot seize the property in order to satisfy any delinquent property tax. Because of that, PIs are assessed as real property on the Unsecured Roll but still fall under the umbrella of Proposition 13. That is to say that although they appear on the Unsecured Roll, they are still assessed according to the laws pertaining to secured real property. It is possible for a PI to be assessed on the secured roll but that is possible only in a situation where the Assessor agrees that property (buildings) built by a tenant on the publicly-owned land is by itself sufficient security for the taxes owed.
