Revenue & Tax Code
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REVENUE & TAX CODE

(California) Revenue & Tax Code §2188.5. Planned Development Income Taxes.

(a) Subject to the limitations set forth in subdivision (b), whenever real property has been divided into planned developments as defined in Sections 11003 and 11003.1 of the Business and Professions Code, the interests therein shall be presumed to be the value of each separately owned lot, parcel or area, and the assessment shall reflect this value which includes all of the following:
(1) The assessment attributable to the value of the separately owned lot, parcel or area and the improvements thereon. 

(2) The assessment attributable to the share in the common area reserved as an appurtenance of the separately owned lot, parcel or area. 

(3) The new base year value of the common area resulting from any change in ownership pursuant to Chapter 2 (commencing with Section 60) or new construction pursuant to Chapter 3 (commencing with Section 70) attributable to the share in the common area reserved as an appurtenance of the separately owned lot, parcel, or area.
For the purposes of this section, "common area" shall mean the land and improvements within a lot, parcel or area, the beneficial use and enjoyment of which is reserved in whole or in part as an appurtenance to the separately owned lots, parcels or areas, whether this common area is held in common or through ownership of shares of stock or membership in an owners' association as defined in Section 11003.1 of the Business and Professions Code. The tax on each separately owned lot, parcel or area shall constitute a lien solely thereon and upon the proportionate interest in the common area appurtenant thereto.

(b) Assessment in accordance with the provisions of subdivision (a) shall only be required with respect to those planned developments which satisfy both of the following conditions:
(1) The development is located entirely within a single tax code area.

(2) The entire beneficial ownership of the common area is reserved as an appurtenance to the separately owned lots, parcels or areas.
(c) The amendment to subdivision (b) made by the act adding this subdivision shall apply to real property which has been divided into planned developments, as defined in Sections 11003 and 11003.1 of the Business and Professions Code, on and after the effective date of the act adding this subdivision.

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