Developers who construct property with the intent to sell can file an application (Claim for New Construction Exclusion from Supplemental Assessment) with our office that provides tax relief for the completed construction. This is also commonly known as Builder’s Exclusion.
The developer must submit to the Assessor-Recorder’s Office a completed claim form prior to or within 30 days from the start of the new construction.
The property must be offered for sale. Properties that are rented, leased, or owner occupied do not qualify for the exclusion.
Builders are not required to file the claim form or notify the Assessor-Recorder’s Office if all of the following are met:
- The property is subdivided into five or more parcels.
- A map describing the parcels has been recorded.
- Only single residences will be constructed on the parcels.
The builder’s exclusion only applies to the supplemental assessment(s) for new construction. It does not apply to the property’s annual property tax, inclusive of any in-progress assessments.
Builders only need to notify our office within 45 days of the earliest date that any of the following occur:
- The property changes ownership pursuant to an unrecorded contract of sale.
- The property is leased or rented.
- The property is occupied or used by the owner or with the owner’s consent if the occupancy or use is incidental to an offer for a change of ownership, including, but not limited to, use of the property as a model home.