Orange County Assessor, Glossary

Access Code or (BIN)
A distinct and private identification code used for e-filing without which online access will not be possible. (BIN – Business Identification Number).

Application Software
Computer programs developed for the solution of individual operational problems of the user.

Appraisal Date
The moment in time for which a valuation is prepared.

APN (Assessor’s Parcel No.)
A numeric system for referring to each parcel of property within the county. (Composed of map books, pages, blocks and parcels.)

Assessed Value
The taxable value of property against which the tax rate is applied.

Assessee
The person who owns, claims, possesses, or controls the property on the lien date. R&T Code Section 23.

Assessee Name
The name of the person or corporation shown on the most currently updated version of a designated roll.

Assessment Appeal
A formal procedure to dispute the value placed on taxable property.

Assessment Appeals Board
A three-member Board appointed by the Board of Supervisors to preside over and decide assessment appeals.

Assessment Appeals Hearing Officer
An individual appointed by the Board of Supervisors to determine the validity of the value placed on a parcel or unsecured bill.

Assessment Date
See "Lien Date".

Assessment Roll
A listing of all taxable property with their respective values, within a county.

Assessment Year
The period beginning with the lien date and ending immediately prior to the succeeding lien date for taxes levied by the same agency. R&T Code Section 118.

Assessor Parcel Map
Assessor parcel maps reflect the legal boundaries and dimensions of each parcel, and serve as the basis for land value assessments.

Audit
A means of collecting data relevant to the determination of taxability, situs, and value of property. R&T Code Section 469.

Base Year Value
The Base Year Value of property that has not changed ownership or been newly constructed since 1975 is the fair market value on the 1975 lien date.

The Base Year Value of property that has been purchased, newly constructed or changed ownership since the 1975 lien date is the market value on the date on which the purchase or change in ownership occurs, or the date on which new construction is completed. R&T Code Section 110.1.

Basic Operational Program
Software programs that are fundamental and necessary to the functioning of a computer.

Bonded Indebtedness
Bond obligation of a local government, which is approved by the voters of such jurisdiction.

Book Value
Capitalized cost less depreciation as estimated by an accountant.

Building Improvements
Usually means the betterment of real property by the addition of a structure(s) or the addition of additional capacity to an existing structure.

Business Description
A general classification specifying the type of trade a business is engaged in, such as manufacturing, retailer, wholesaler, or professional services.

Business Property
All assessable items of tangible personal property and fixtures that are owned, claimed, possessed, controlled or managed in a trade, business or profession. (See Property Tax Rule 123 of the California Code of Regulations.)

Business Property Statement (Form BOE-571-L)
A State Board of Equilization (BOE) prescribed form businesses use to report costs and other related information to their local county Assessor.

Calamity Reassessment
A reassessment made when there is damage of over $5,000 to any taxable property caused by fire, wind, or water, without the fault of the owner.

Capitalized Leased Equipment
Items of equipment whose acquisition was funded on a lease contract, and the title of which will go to the purchaser with the final payment.

Change in Ownership
The transfer of a present interest in property, including the beneficial use thereof, the value of which is substantially equal to the value of the fee interest. R&T Code Section 60 et seq.

Change in Ownership Statement (COS)
State law requires that a Preliminary Change of Ownership Report (PCOR) be filed with every document evidencing a change in the title or ownership or real estate when the document is recorded. If a document that evidences a change in title is recorded without a PCOR, the Assessor will send the new owner a Change of Ownership Statement (COS). The new owner is responsible for filing a completed COS. Penalties for not filing range from $100 to $2,500 and will result in an additional tax bill.

Church Exemption
A type of exemption for property operated (but not necessarily owned) by a church that requires annual filing.

Clerk of the Board
Clerk of the Board of Supervisors, who serves as Clerk of the Assessment Appeals Board. The Clerk of the Board is responsible for setting all cases before the Assessment Appeals Boards and Hearing Officers, then notifying taxpayers and the Assessor of scheduled assessment appeals.

Combination
When two or more parcels are combined into one parcel.

Common Area
Land and improvements within a lot, parcel, or area for the beneficial use and enjoyment of all owners. The common area may be held by owners of lots or residential units as an undivided interest, owned in its entirety by a homeowners' association, or a combination of both.

Completion Date
The completion date of construction as reported by an agency or city or determined by an Deputy Assessor.

Conditional Sale Contract
A form of sales contract in which the seller reserves the title until the buyer pays for goods or land, at which time title passes. Also known as a financing lease.

Condominium
The composite of individual ownership and exclusive possession of airspace in a multi-unit building with collective ownership in, and rights of possession to, common facilities.

dba
"Doing Business As." A (fictitious) name given to the business that is separate and apart from the ownership name.

Deed of Trust
A written instrument by which a borrower (trustor or owner) conveys an estate in real property to another (trustee) for the benefit of the lender (beneficiary) as security for the repayment of a money loan. In the event of a failure of the trustor to repay the debt, the trustee conducts a foreclosure sale of the real property.

Disabled Veteran's Exemption
Exemption that can exclude up to $150,000 of a qualified veteran's primary residence from taxation.

Easement
Created for a specific purpose, an easement is the right, privilege, or intention that one party has in the land of another.

e-File
An electronic record created, generated, sent, communicated, received or stored by electronic means through a Web-site.

e-Filing
A web-based application that will allow users to view, modify, and submit filings on-line.

Electronic Signature
An electronic symbol or process logically associated with an electronic record and executed by a person with the intent and full knowledge that the electronic signature constitutes a valid certification of the electronic record.

Eminent Domain
The right of the government to acquire property for necessary public or quasi-public use by condemnation. An owner must be fairly compensated.

Escape Assessment
An assessment to increase the roll value for a previous year when a property is underassessed or misses assessment. R&T Code Section 531

Factored Base Year Value (FBYV)
This is the Base Year Value, plus the value of any assessable new construction, plus an annual inflation factor of no more than 2% per year. Factored Base Year Value represents the maximum value allowed under Proposition 13.

Fair Market Value (Market Value)
The amount of cash or its equivalent that a property would bring if exposed for sale in the open market. Also known as Full Cash Value. R&T Code Section 110.

Final Order of Condemnation
A judicial order transferring either an easement or fee title to a plaintiff for property condemned under eminent domain proceedings.

Fiscal Year
Orange County's fiscal year is an accounting period beginning July 1 and ending June 30.

Fixture
An item of tangible property which is classified as real property for assessment purposes because it is physically or constructively annexed to real property with the intent that it remain annexed indefinitely. Property Tax Rule 122.5.

Full Cash Value
The amount of cash, or its equivalent, that property would bring if exposed for sale in the open market under conditions in which neither buyer nor seller can take advantage of the exigencies of the other, and with both buyer and selling having knowledge of all uses and purposes to which the property is capable of being used, together with any enforceable restrictions on that use. R&T Code Section 110.

Full Economic Cost
Cost for appraisal purposes. Includes all market costs (direct and indirect) necessary to purchase or construct equipment and make it ready for its intended use.

Grant Deed
A written instrument that transfers title to real property.

Grantee (Buyer)
A person who acquires title to real property.

Grantor (Seller)
A person who makes a transfer of title to real estate.

Historical Cost
The total cost of a property when it was originally purchased.

Homeowner and Renter Assistance
Homeowners who are blind, disabled or 62 years or older and meet income restrictions may qualify for this program administered by the State of California.

Homeowners' Exemption
An exemption that reduces the assessed value of real or personal property by $7,000. The property must be owned and occupied by the person applying for the exemption.

Improvement
All buildings, structures, fixtures, and fences erected on or affixed to the land.

Institutional Exemption
A category of exemptions including church, religious, welfare, and college exemptions.

Inventory
Items of personal property that become part of a product or are themselves a product that are held for sale or lease in the ordinary course of business.

Land
Real estate or real property, except improvements.

Lease
A contract between an owner and tenant for the possession of real property that sets forth conditions for occupancy, use, and duration of the tenancy.

Leasehold Improvements
Improvements made by the lessee/tenant.

Lease Purchase Option Equipment
Equipment acquired via a lease purchase option in which the final payment, if made, transfers title to the lessee.

Legal Description
A description of real property sufficient to locate it on the ground by reference to government surveys or approved recorded maps.

Lessee
One who has the right to use or occupy property under a lease agreement.

Lessor
One who conveys the right to use and/or occupy property under a lease agreement.

Lien Date
The date when taxes for any fiscal year become a lien on property. (Currently 12:01 a.m. January 1 of each year.) R&T Code Section 117.

Lifted Improvements
Buildings owned by someone other than the owner of the land and billed on a separate tax bill.

Mandatory Audit
Audits that are performed on all businesses that declare taxable personal property of $400,000 or more for four consecutive years. R&T Code Section 469

Mello-Roos
A comprehensive regional government financing and administrative system established by local governments at the request of a developer to finance specific public facilities and services such as schools, roads and libraries. Mello-Roos payments are billed as a separate charge on the property tax bill.

New Construction
Any addition to real property, whether land or improvements (including fixtures) since the last lien date. In addition, any alteration of land or improvements (including fixtures) since the last lien date which constitutes a major rehabilitation or converts the property to a different use. R&T Code Section 70 & 73.

New Construction Letters
A self-reporting letter completed by an assessee with new construction information.

Ownership type
A description of ownership type as provided by the Assessee, including proprietorship, partnership, corporation or business trust.

Parcel Map
Not to be confused with the Assessor's Parcel Map, this recorded map is used to illustrate a division of land or commonly-known "lot split." It does not constitute a tract, and it is restricted to the breakup of not more than four residential parcels.

Penalty Assessment
A penalty for failure to file a Business Property Statement with the Assessor within the prescribed time. The penalty is equal to 10% of the assessed value of the unreported property.

Personal Property
All property except real property. R&T Code Section 106.

Possessory Interest
An assessable right for the private use of tax-exempt land, (property owned by a government agency that is used by a private party(ies)).

Preliminary Change of Ownership Statement (PCOR)
A form that is completed by a transferee (buyer) and filed concurrently with a Recorded Document evidencing a change in ownership. If this form is not filed at the time of recording, a fee of $20.00 is charged. This form is identical to the Change in Ownership Statement and provides the Assessor Department with information about the transfer.

Property
Property includes all matters and things, tangible and intangible, real estate and personal property that are capable of private ownership. The Assessor assesses real estate (land and improvements), and taxable personal property.

Property Tax Postponement
Homeowners who are blind, disabled or 62 years or older and meet income restrictions may qualify for this program administered by the State of California.

Proposition 8
Proposition 8 amended Proposition 13 to provide for declines in value. Prop. 8 requires the Assessor to enroll the lower of either: (1) the Factored Base Year Value, or (2) the market value as of the annual lien date Jan. 1. Prop. 8 reductions in value are temporary.

Proposition 13
Limits the property tax rate to 1 percent plus voter-approved bonded indebtedness, and defines taxable value as the lower of the property's Factored Base Year Value (FBYV) or market value on lien date, January 1. Factored Base Year Value is the market value of the property when it was acquired by the current owner, plus the value of any new construction, plus an inflation factor of no more than 2% per year. Taxable value can increase more than 2% in one year if the property experiences a change in ownership, new construction or received temporary reduction(s) in taxable value in prior tax year(s).

Proposition 58
Real estate that is transferred from parent(s) to child(ren), or from child(ren) to parent(s) may be excluded from reassessment, subject to certain value limitations.

Proposition 60
A one-time provision that allows a homeowner 55 years of age or older, who meet other filing requirements, to transfer the base-year value of his/her home to a replacement property in the same county.

Proposition 90
A one-time provision that allows a homeowner 55 years of age or older, who meet other filing requirements, to transfer the base-year value of his/her home to a replacement property in a different county. The county Board of Supervisors where the replacement property is purchased must have enacted a Prop. 90 ordinance to allow the transfer of base-year value to that county.

Proposition 110
Allows a severely and permanently disabled person to transfer the base year value of his/her property to a replacement property. Also exempts from reassessment new construction completed for the purpose of making a structure more accessible for a severely and permanently disabled person.

Proposition 193
Real estate that is transferred from grandparent(s) to grandchild(ren), may be excluded from reassessment, subject to certain value limitations. In order to qualify, all parents of the grandchild must be deceased as of the date of transfer.

Quitclaim Deed
An instrument that passes whatever title a grantor has at the time a transaction is consummated to a designated grantee. If the grantor acquires a better title at a later date, it is not passed on to the grantee, and it carries no warranties on the part of the grantor.

RCLND
A method used by the Assessor to value business personal property. It is the cost to replace an existing property with a property of equivalent utility minus normal depreciation. (Replacement Cost Less Normal Depreciation.)

Real Property
Land, improvements, all mines, minerals, and quarries in the land and all standing timber.

Reassessment
The establishment of a new Base Year Value for property, equal to its Full Cash Value when it changes ownership in accordance with Prop. 13. Certain changes in ownership are specifically excluded from reassessment.

Recorded Document
Any written instrument or judgment affecting the title or possession of real property submitted to the County Recorder and made of record by that office; includes Grant Deeds, Quitclaim Deeds, leases, contracts, and court decrees.

Redevelopment
An activity carried out by a city or county government to bring about new development in blighted urban areas.

Religious Exemption
A type of exemption for church-owned property that requires a "one-time filing."

Replacement Cost
The cost to replace an existing property with a property of equivalent utility.

R&T Code (Revenue and Taxation Code)
The body of statutory law that governs property assessment and property taxation procedures and practices.

SBE
See "State Board of Equalization".

Sales Tax
This is an element of cost for acquiring things. Sales tax is also included in the basis of cost for assessment purposes.

Schedule "A" of Form BOE-571-L
A detailed list of equipment by classification with costs accumulated by year of acquisition. Includes machinery and equipment used for industry, profession or trade, office equipment, and computers and computer-related equipment.

Schedule "B" of Form BOE-571-L
A detailed list of building costs; building improvement costs; leasehold improvement costs; land improvement costs; land and land development costs, all with costs accumulated by year of acquisition.

Schedule "D" (Form 571-D)
A supplemental record for reporting the detail of acquisitions and disposals of property reported on Schedule B of the Business Property Statement (form BOE-571-L).

Secured Roll
That part of the assessment roll containing state assessed property an