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Apply for the builders' exclusion

Reassessment exclusion for a builder who constructs property for resale

What to do

Builders' exclusion

Property owners who construct property with the intent to sell can file a claim to exclude the property from a supplemental assessment for the completed construction. This is commonly called a builders' exclusion Revenue and Taxation Code Section 75.12.

Eligibility for the exclusion

To be eligible for the exclusion, the property must be offered for sale once new construction is complete. Properties that are rented, leased, or owner occupied do not qualify for this exclusion.  

Filing requirements

  • The owner builder must submit the completed claim form prior to or within 30 days from the start of the new construction. 

Exception to filing

Builders are not required to file the claim form or notify the Assessor-Recorder’s Office if all of the following are met:

  1. The property is subdivided into five or more parcels.
  2. A map describing the parcels has been recorded.
  3. Only single residences will be constructed on the parcels.

Start of construction

The start of construction occurs when there are any physical activities on the property that result in visible changes such as the following:

  • clearing and grading land
  • excavation
  • layout of foundations
  • installation of temporary structures, and 
  • demolition of existing structures or fixtures

Supporting information

Completion of construction

Builders only need to notify our office within 45 days of the earliest date that any of the following occur:

  1. The property changes ownership pursuant to an unrecorded contract of sale.
  2. The property is leased or rented.
  3. 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.

Get help

Address

Main OfficeOffice of the Assessor-Recorder
City Hall, Room 190
1 Dr. Carlton B. Goodlett Place
San Franciso, CA 94102
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