Removal of property is new construction and may result in a refund. Repair, replacement, and maintenance are normally not considered to be new construction.
How New Construction is Appraised
New construction is appraised at its value as of the date it was completed. If January 1, the lien date, occurs before completion, the unfinished new construction is also appraised at its value as of the lien date.
Builder's Inventory Exclusion
A new construction exclusion may be applied to property that is being developed with the intent to resell. This exclusion my reduce or eliminate supplemental taxes for new construction.
File a Claim
A claim must be filed with the Assessor within 30 days from the date construction begins. The property owner is responsible for notifying the Assessor within 45 days of the date any of the following events occur:
1) The property changes ownership or is subject to an unrecorded contract of sale.
2) The property is rented or leased.
3) The property is occupied and the occupancy of the property is other than as a model home or any use pertinent to the marketing of the property.
The exclusion only applies to supplemental assessments for new construction. The Builder's Inventory Exclusion is automatically applied to properties that have been subdivided into five or more parcels.
To apply for a Builder's Inventory Exclusion, call (209) 385-7631 between 8:00 am and 5:00 pm or complete and mail the Application to Merced County Assessor, 2222 M St, Merced, CA 95340.