For Existing Buildings

The installation of an active solar energy system to an existing structure is excluded from property tax assessment under Revenue and Tax code section 73, which defines the term “active solar energy system” as any system that uses solar devices which are thermally isolated from living space or any other area where the energy is used, to provide for the collection, storage, or distribution of solar energy.

An active solar energy system may be used for any of the following:

  – Production of electricity
  – Domestic, recreational, therapeutic, or service water heating
  – Space conditioning (interior air heating/cooling)
  – Process heat (industrial environments to produce steam or high heat)
  – Solar mechanical energy

Pipes, ducts, tanks, and other auxiliary equipment used in a solar energy system that also carry or use energy from sources other than solar energy are assessable at 75% of their market value. Excluded from this benefit are solar swimming pool heaters, hot tub heaters, passive energy systems, or wind energy systems.

The exclusion acts as a property tax incentive to encourage the installation of active solar systems. The installation of a qualifying solar energy system will not result in either an increase or a decrease in the assessment of an existing property and no claim needs to be filed with our office.

This exclusion remains in effect until a change in ownership of the system occurs. In the event of a partial change in ownership, that portion of the system that changed ownership would be assessable.

For Initial Buyers of Newly Constructed Building

As of September 2008 the law was amended to extend the solar energy exclusion to the initial purchaser of a new building from an owner-builder, but only if all of the following conditions are met:

Owner-builder:
  – incorporated an active solar energy system in the initial construction of the new building,
  – did not occupy, lease or use the new building prior to sale,
  – did not already receive an exclusion for the same active solar energy system, and

Initial buyer:
  – purchased the new building prior to the building becoming subject to reassessment to the owner-builder (before Jan 1st of the year following completion of new construction),
  – filed a claim form with the Assessor and is able to identify the value attributable to the active solar energy system that was included in the total purchase price.

To download the Initial Purchaser Claim for Solar Energy System New Construction Exclusion, click here (pdf) or go to Forms.

For more information please call (510) 272-3787.

The disabled access exclusion is available in two formats: one designed for the single- or multiple-family property and the other for commercial property.

Disabled Access – Residences Eligible for the Homeowners’ Exemption

Modifications made in order to make an existing dwelling more accessible to a severely and permanently disabled person or persons are excluded from reassessment if certain conditions are met. The residence must be eligible for the Homeowners’ Exemption and the disabled person must be a permanent resident. A claim form must be filed with our office which includes the physician’s certification of disability. Swimming pools and spas are excluded from this benefit, as are construction features that are usual or customary for comparable properties not occupied by disabled persons.

A “severely and permanently disabled person” is defined as any person who has a physical disability or impairment, whether from birth or by reason of accident or disease, that results in a functional limitation as to employment or substantially limits one or more major life activities of that person. The definition also requires that the condition must have been diagnosed as permanently affecting the person’s ability to function, including, but not limited to, any disability or impairment that affects sight, speech, hearing, or the use of any limbs.

Please note that if the property changes ownership after the construction is completed, the existing disabled-access accommodations are no longer excluded from reassessment.

To download the Disabled Persons Claim for Exclusion of New Construction, which includes filing information, click here (pdf) or go to Forms. If you have further questions, please call (510) 272-3787.

Disabled Access – Structures Not Eligible For the Homeowners’ Exemption

Qualifying property owners who perform construction, installation, removal, or modification to an existing property to make it more accessible to severely and permanently disabled persons may be eligible, upon timely filing, for an exclusion from reassessment. The property owner must notify the Assessor prior to, or within 30 days of, the completion of the project that he or she intends to claim this exclusion. All documents supporting the exclusion must be filed by the owner with the Assessor no later than six months after completion of the project.

Please note that if the property changes ownership after the construction is completed, the existing disabled-access accommodations are no longer excluded from reassessment.

To download the Claim for Disabled Accessibility Construction Exclusion From Assessment, click here (pdf) or go to Forms. If you have further questions, please call (510) 272-3787.

Specified seismic retrofitting and earthquake hazard mitigation features that are added to existing buildings may be excluded from reassessment. An owner must notify the Assessor prior to, or within 30 days of, the completion of the construction project that he or she intends to claim this exclusion. The applicant must also certify in writing to the building department (or have certified by the primary contractor, civil or structural engineer, or architect) those portions of the construction project that are specifically attributable to seismic retrofit or earthquake mitigation technologies.

Please note that if the property changes ownership after the seismic retrofit is completed, the earthquake mitigation construction is no longer excluded from reassessment.

To download the Claim for Seismic Safety Exclusion From Assessment, click here (pdf) or go to Forms. If you have further questions, please call (510) 272-3787.

Fire sprinkler systems, other fire extinguishing systems, fire detection systems, and fire-related egress improvements (construction that improves evacuation during a fire) are excluded from property tax assessment when constructed or installed in an existing building. However, such items are not excluded from reassessment when property changes ownership.

No claim or application is required. The Assessor may contact you for information if the fire sprinklers addition to an existing building is being done in conjunction with brand new construction elsewhere on the property. Fire suppression systems installed or constructed concurrent with the construction of a new structure (or new addition to an existing structure) are assessable as part of the new construction.