When a property owner applies for a permit to build a residence that is intended for sale at completion, he may complete a Claim for Builder Exemption Form at the same time, or within 30 days of commencement of construction.
The builder declares that he does not intend to lease, rent, occupy or use the property in any way. In return, the Assessor does not process the supplemental assessment for completion of the project.
Since it can take several months to generate the supplemental assessment once the project is finaled by the Building Department, the property may have sold in the meantime, leaving the builder with a supplemental tax bill after escrow has closed. The Builder Exemption can prevent this from happening, thus saving the builder significant tax dollars.
If the builder has to change his plans regarding the use of the property and occupies, rents, or otherwise uses the property, he must notify the Assessor within 45 days to prevent a penalty.
If you have any questions about the Builder Exemption, please contact our office.