Wunderlich v. County of Santa Cruz

*686Opinion

McADAMS, J.

In this case. of first impression, we are called upon to interpret Proposition 60, voter-enacted constitutional tax relief implemented through legislation. (Cal. Const., art. XIII A, § 2, subd. (a); Rev. & Tax. Code, § 69.5.) Proposition 60 allows qualified homeowners to transfer the property tax basis of their principal residence to a replacement dwelling of equal or lesser value. The dispute in this case concerns valuation of the replacement dwelling. The specific issue before us is this: When an applicant for Proposition 60 tax relief builds a new residence on land purchased years earlier, is the value of the replacement dwelling calculated using the land’s current value (its fair market value when construction is complete) or the land’s historic value (its base year value under Prop. 13)? We conclude that the land must be valued currently, as of the date that construction of the structure is completed. We therefore reverse the summary judgment granted to the homeowners here.

BACKGROUND

The parties to this appeal are plaintiffs and respondents Kenneth Wunderlich and Jeanette Engelhart (the homeowners), and defendants and appellants the County of Santa Cruz and its assessor (the County). The pertinent facts are undisputed.1

The homeowners owned a home at 520 Stagg Lane, Santa Cruz (the original property). They sold the original property in January 2004 for $830,000. At that time, it had a property tax basis of $187,992.

The homeowners also owned a lot across the street at 521 Stagg Lane, which they purchased in 1979; they constructed a new home on the lot, which was completed in June 2004 (the replacement dwelling). After construction was complete, the County assessed the replacement dwelling at $730,877 for property tax purposes under Proposition 13, specifying improvements at $668,400 and land at $62,477 (its base year value).

The homeowners applied to the County for transfer of the property tax basis of their original property to the replacement dwelling. For Proposition 60 purposes, the County assessed the replacement dwelling at $900,000, specifying improvements at $668,400 and land at $231,600 (its then current fair market value). Since the assessed value of the replacement dwelling *687exceeded 105 percent of the value of the original property, the County refused to transfer the homeowners’ property tax basis to the replacement dwelling.

After exhausting administrative appeals, the homeowners sued the County, seeking declaratory, injunctive, and writ relief. The County interposed a demurrer, which the court overruled.

In April 2007, the homeowners moved for summary judgment. The court granted the motion. In October 2007, the court entered judgment for the homeowners.

The County filed this timely appeal from the judgment. We granted four requests for leave to file briefs as amici curiae.2 We also granted two requests for judicial notice.3

CONTENTIONS

The County contends that it correctly valued the land component of the replacement dwelling for Proposition 60 purposes. In support of its contention, the County cites the language of the governing provisions, the intent of the initiative and its implementing legislation, and instructions concerning the assessment of replacement dwellings issued by the State Board of Equalization (the Board).

The homeowners disagree. In their view, the applicable statute directs the County to use the same method of assessing the land both for Proposition 13 and for Proposition 60.

DISCUSSION

To establish the proper framework for our analysis, we first summarize pertinent general principles of property taxation before turning to the specific provisions at issue here.

*688I. Overview: Property Taxation

A. Ad Valorem Taxation

In California, all nonexempt property is subject to ad valorem taxation. (Jensen v. Byram (1964) 229 Cal.App.2d 651, 652 [40 Cal.Rptr. 540], disapproved on another point in Bauer-Schweitzer Malting Co. v. City and County of San Francisco (1973) 8 Cal.3d 942, 948 [106 Cal.Rptr. 643, 506 P.2d 1019]; Rev. & Tax. Code, §§ 201, 2202.)4 “An ad valorem tax is a tax levied on property in proportion to its value, as determined by assessment or appraisal.” (American Airlines, Inc. v. County of San Mateo (1996) 12 Cal.4th 1110, 1124 [51 Cal.Rptr.2d 251, 912 P.2d 1198].)

1. Valuation

The starting point for assessing property is its full value. “ ‘Full value’ means fair market value, full cash value, or such other value standard as is prescribed by the Constitution or [the Revenue and Taxation Code] under the authorization of the Constitution.” (§ 110.5; see ITT World Communications, Inc. v. County of Santa Clara (1980) 101 Cal.App.3d 246, 251 [162 Cal.Rptr. 186].)

Assessed value is derived from full value. It is determined as a percentage of the property’s full value, either its “fair market value” or “a value standard other than fair market value” where constitutionally authorized. (Cal. Const., art. XIII, § 1, subd. (a); see City and County of San Francisco v. County of San Mateo (1995) 10 Cal.4th 554, 565, fn. 5 [41 Cal.Rptr.2d 888, 896 P.2d 181]; id. at p. 566; 1 Ehrman & Flavin, Taxing Cal. Property (4th ed. 2008) § 3:1, p. 3-2, fn. 1.)

2. Equalization

The California “Constitution requires all property subject to taxation to be assessed at the same percentage of . . . value; i.e., there must be uniformity of assessment.” (Shafer v. State Bd. of Equalization (1985) 174 Cal.App.3d 423, 429 [220 Cal.Rptr. 59], discussing Cal. Const., art. XIII, § 1.) “ ‘Adjustment of assessment levels of various categories of property to a uniform percentage of full value is called “equalization.” ’ ” (American Airlines, Inc. v. County of San Mateo, supra, 12 Cal.4th at p. 1124.)

It is the Board’s function “to equalize on the basis of fractional assessments to full cash value.” (Hanks v. State Board of Equalization (1964) 229 *689Cal.App.2d 427, 432 [40 Cal.Rptr. 478]; see Cal. Const., art. XIII, § 18.) To carry out that function, the Board is charged with prescribing “rules and regulations to govern local boards of equalization when equalizing, and assessors when assessing” property. (Gov. Code, § 15606, subd. (c).) The Board is also required to “issue instructions to assessors designed to promote uniformity throughout the state and its local taxing jurisdictions in the assessment of property for the purposes of taxation.” (Id., subd. (e); see also Gov. Code, § 15608.)

3. Assessment of Real Property

For taxation purposes, real property includes both land and improvements. (§ 104; see also § 69.5, subd. (g)(3); Cal. Const., art. XIII A, § 2, subd. (a).) The two components are “separately assessed.” (§ 607; Cal. Const., art. XIII, § 13.) Both are subject to taxation. (Jensen v. Byram, supra, 229 Cal.App.2d at p. 652 [county could recover taxes as escaped assessments, where “land was assessed and taxes were paid, but through oversight, there was no assessment of improvements . . .”].) The separate assessment provisions mandate “that the distinction be carried into the tax rolls for the purpose of equalizing separately the assessments on land and on improvements.” (Krouser v. County of San Bernardino (1947) 29 Cal.2d 766, 769 [178 P.2d 441].)

B. Proposition 13

“In 1978, the voters adopted Proposition 13, which became article XIII A of the California Constitution. Article XIII A limits both the valuation of real property for tax purposes and the maximum tax rate that can be imposed on the resulting real property valuation.” (City and County of San Francisco v. County of San Mateo, supra, 10 Cal.4th at p. 561.) “Article XIII A’s purpose was to restrict the taxation of real property generally by limiting the growth in valuation of real property and by limiting the maximum tax rate imposed on real property.” (Id. at p. 569.)

1. Valuation

Under Proposition 13, a base year value for real property is established, which is dependent on the property acquisition date. (§ 110.1.) For property owned at the 1975 lien date, Proposition 13 limits its value “to the 1975-1976 ‘full cash value’ of the property, increased for inflation by a *690maximum of 2 percent annually.” (City and County of San Francisco v. County of San Mateo, supra, 10 Cal.4th at p. 561, citing art. XIII A, § 2, subds. (a), (b); see § 110.1, subd. (a)(1).) For property acquired after 1975, the base year value is determined as of the date of purchase, new construction, or change in ownership. (§§ 110.1, subd. (a)(2), 75.8; City and County of San Francisco v. County of San Mateo, at pp. 565-566.) As with property owned at the 1975 lien date, the base year value of these later acquired properties will increase at a maximum rate of 2 percent per year. (§§ 110.1, subd. (f), 51, subd. (a); Cal. Code Regs., tit. 18, § 460, subd. (b)(5).)

Proposition 13 thus “established an ‘acquisition value’ tax for real property in California.” (1 Ehrman & Flavin, Taxing Cal. Property, supra, § 3:1, p. 3-2.) In other words, “Proposition 13 abandons the annual lien date revaluation principle.” (Id., § 11:2, p. 11-3.) Under Proposition 13, “the only time full cash value equals fair market value is in the year when real property subject to appraisal at fair market value is first purchased, newly constructed, or otherwise changes ownership.” (City and County of San Francisco v. County of San Mateo, supra, 10 Cal.4th at p. 566.) But additions, alterations, or other changes to existing property may trigger a partial reassessment under Proposition 13, such that a new base year value will be established for the newly constructed portion of the property. (§71; Cal. Code Regs., tit. 18, § 463, subd. (a); see generally 2 Ehrman & Flavin, Taxing Cal. Property, supra, § 23:10, pp. 23-15 to 23-16.)

2. Tax Rate

In addition to its constraints on valuation, Proposition 13 also “limits the maximum tax rate to 1 percent.” (City and County of San Francisco v. County of San Mateo, supra, 10 Cal.4th at p. 561, citing art. XIII A, § 1, subd. (a).)

C. Subsequent Tax Relief Initiatives

In a series of voter-enacted initiatives that followed the approval of Proposition 13, the California electorate authorized the Legislature to permit the transfer of a property’s base year value to a replacement property under some circumstances. (See generally 1 Ehrman & Flavin, Taxing Cal. Property, supra, § 11:11, pp. 11-17 to 11-19.)

In November 1986, the voters approved Proposition 60, the measure at issue here. In brief, Proposition 60 is a constitutional amendment authorizing legislation to permit qualified homeowners over 55 years of age (seniors) *691to transfer their base year value to a replacement dwelling of equal or lesser value within their county. (Cal. Const., art. XIII A, § 2, subd. (a).) In November 1988, the voters approved Proposition 90, a further constitutional amendment enabling the transfer of base year values between counties, upon the adoption of implementing legislation and of qualifying local ordinances. (Cal. Const., art. XIII A, § 2, subd. (a).) In the 1990’s, California’s voters authorized the extension of base year transfers to two other classes of property owners besides seniors: disabled homeowners and owners of contaminated property.5

The Legislature implemented these constitutional provisions. As relevant here, section 69.5 governs transfers of base year values by seniors.6

II. Proposition 60: Overview

As just noted, Proposition 60 arose from a voter initiative amending the California Constitution, which the Legislature implemented through section 69.5.

A. The Constitutional Provision

In pertinent part, the enabling constitutional provision states that “the Legislature may provide that . . . any [qualified] person over the age of 55 years who resides in property that is eligible for the homeowner’s exemption . . . may transfer the base year value of the property ... to any replacement dwelling of equal or lesser value located within the same county and purchased or newly constructed by that person as his or her principal residence within two years of the sale of the original property.” (Cal. Const., art. XIII A, § 2, subd. (a).)

*692B. Legislative Implementation

Section 69.5 implements the constitutional amendment. That statute appears in the Revenue and Taxation Code in division 1, part 0.5 (“Implementation of Article XIII A of the California Constitution”), chapter 2 (“Change in Ownership and Purchase”). Section 69.5, subdivision (a), provides the implementing language, which largely mirrors that of the constitutional provision.7

Key terms are defined in section 69.5, subdivision (g).8 Among them is “equal or lesser value.” (§ 69.5, subd. (g)(5).) Under that statutory definition, “if the replacement dwelling is, in part, purchased and, in part, newly constructed, the date the ‘replacement dwelling is purchased or newly constructed’ is the date of purchase or the date of completion of construction, whichever is later.” (Ibid.)

III. Proposition 60: Analysis

With the foregoing principles and provisions in mind, we now consider the specific question presented here: In determining whether the replacement dwelling is of equal or lesser value when compared to the original property, how should the value of the land component of the replacement dwelling be calculated?

*693The County urges the use of current land value. In its view, the plain language of the statute—particularly section 69.5, subdivision (g)(5)—calls for valuation of the land as of the date that construction of the structure is complete. This same interpretation has been adopted by the Board.9

For their part, the homeowners argue for use of the land’s historic value. As they view the law’s intent, the base year value of the land as determined under Proposition 13 is also the proper measure of its value for purposes of Proposition 60. In pressing this argument, the homeowners principally rely on section 69.5, subdivision (g)(6).

*694As both parties acknowledge, the question before us is one of statutory interpretation.

A. Principles of Appellate Review

The interpretation of constitutional or statutory provisions presents a legal question, which we decide de novo. (Smith v. Superior Court (2006) 39 Cal.4th 77, 83 [45 Cal.Rptr.3d 394, 137 P.3d 218].) Our task is to ascertain the intent of the electorate or the Legislature, thereby giving effect to the law’s purpose. (Preston v. State Bd. of Equalization (2001) 25 Cal.4th 197, 213 [105 Cal.Rptr.2d 407, 19 P.3d 1148].)

We begin by examining the language of the relevant provisions. {Smith v. Superior Court, supra, 39 Cal.4th at p. 83.) Where “intent is expressed in unambiguous terms, we must treat the statutory language as conclusive; ‘no resort to extrinsic aids is necessary or proper.’ ” (Equilon Enterprises v. Consumer Cause, Inc. (2002) 29 Cal.4th 53, 61 [124 Cal.Rptr.2d 507, 52 P.3d 685]; see also, e.g., Preston v. State Bd. of Equalization, supra, 25 Cal.4th at p. 213.)

On the other hand, where “the provision’s words are ambiguous and open to more than one meaning, we consult the legislative history, which in the case of article XIII A is the ballot pamphlet.” (City and County of San Francisco v. County of San Mateo, supra, 10 Cal.4th at p. 563.)

“In cases of ambiguity we also may consult any contemporaneous constructions of the constitutional provision made by the Legislature or by administrative agencies.” (City and County of San Francisco v. County of San Mateo, supra, 10 Cal.4th at p. 563.) As to the latter, however, “the binding power of an agency’s interpretation of a statute or regulation is contextual: Its power to persuade is both circumstantial and dependent on the presence or absence of factors that support the merit of the interpretation.” (Yamaha Corp. of America v. State Bd. of Equalization (1998) 19 Cal.4th 1, 7 [78 Cal.Rptr.2d 1, 960 P.2d 1031].)

“Finally, the court may consider the impact of an interpretation on public policy ...” when construing an ambiguous provision. (Mejia v. Reed (2003) 31 Cal.4th 657, 663 [3 Cal.Rptr.3d 390, 74 P.3d 166].) Absurd results are to be avoided. (Day v. City of Fontana (2001) 25 Cal.4th 268, 272 [105 Cal.Rptr.2d 457, 19 P.3d 1196]; Civ. Code, § 3542.)

B. Discussion

Interpreting the governing statutory provisions in this case of first impression, we conclude that they compel valuation of both the land and the *695structure as of a single date. In this case, that date was in June 2004, when construction of the structure was complete. We reach that conclusion based on statutory language alone. The statute—section .69.5—has been aptly described as “extraordinarily complex” with “pages of dense, convoluted and interrelated provisions.” (1 Ehrman & Flavin, Taxing Cal. Property, supra, § 11:11, p. 11-23.) But as we explain below, the specific provisions that concern us here are expressed in clear and unambiguous terms. Thus, it is neither necessary nor proper to consider extrinsic aids to interpretation, such as legislative history. (Equilon Enterprises v. Consumer Cause, Inc., supra, 29 Cal.4th at p. 61; Kaufman & Broad Communities, Inc. v. Performance Plastering, Inc., supra, 133 Cal.App.4th at p. 30.)

1. Components of the Replacement Dwelling

By statutory definition, the “replacement dwelling” consists of two components, the “building, structure, or other shelter constituting a place of abode,” and the land on which that structure is situated. (§ 69.5, subd. (g)(3).) Unimproved land does not qualify for Proposition 60 tax relief, which is available only for a dwelling occupied as the owner’s principal residence. (§ 69.5, subds. (a)(1), (g)(10); see § 218; Cal. Const., art. XIII, § 3, subd. (k); Smith v. State Bd. of Equalization (1997) 53 Cal.App.4th 331, 334 [61 Cal.Rptr.2d 604].)

As noted above, land and improvements must be separately assessed. (§ 607; Cal. Const., art. XIII, § 13.) Even so, the replacement dwelling— including both land and structure—is properly treated as a single unit. (See § 69.5, subd. (g)(3).) “For property tax purposes, the unit to be valued ordinarily is the one normally dealt with in the market. In the case of real property, this is usually both the land and its improvements . . . .” (2 Ehrman & Flavin, Taxing Cal. Property, supra, § 17:7, p. 17-20.) “Although a separate assessment is required for land and improvements, separate appraisals of the value of each are not.” (Id. at p. 17-21, italics added, fn. omitted; cf. Specialty Restaurants Corp. v. County of Los Angeles (1980) 111 Cal.App.3d 607, 612 [168 Cal.Rptr. 827] [where “the total assessments” for real and personal property were not unreasonable, the “blending of the various real property aspects of the leasehold interests [did] not invalidate the assessment”].)

In this case, the County did assess the land and improvements separately, as required by the governing statutory and constitutional provisions. The only disputed question is the proper date for the land valuation.

2. Valuing the Replacement Dwelling: Subdivision (g)(5)

The specific provision that defines “equal or lesser value” says “if the replacement dwelling is, in part, purchased and, in part, newly constructed, *696the date the ‘replacement dwelling is purchased or newly constructed’ is the date of purchase or the date of completion of construction, whichever is later” (§ 69.5, subd. (g)(5), italics added.)

In this case, the replacement dwelling was “in part, purchased,” the land having been acquired in 1979. (§ 69.5, subd. (g)(5).) And it was “in part, newly constructed,” construction of the structure having been completed in 2004. (Ibid.) Under the statute, the relevant date is the later of the two. (Ibid.) Applying the plain terms of this provision to the undisputed facts of this case, the replacement dwelling—both land and structure—must be assessed as of 2004, when construction of the structure was completed.

The homeowners resist this interpretation. As they see it, the last paragraph of section 69.5, subdivision (g)(5), operates only to determine which statutory inflation multiplier to use.10 They argue: “It is not for determining date of valuation.”

We are not persuaded by the homeowners’ argument on this point. The language of the provision does not support the homeowners’ proffered interpretation. In defining equal or lesser value, the last paragraph of section 69.5, subdivision (g)(5) explicitly sets the determinative date as the later of purchase or construction. It offers no basis for valuing land and improvements on two different dates. To the contrary, it requires the choice of a single date for valuing the replacement dwelling as a unit.

3. Valuing the Replacement Dwelling: Subdivision (g)(6) and Section 110.1

Apart from their interpretation of section 69.5, subdivision (g)(5), the homeowners also assert that other statutory provisions compel their proffered construction. The homeowners particularly rely on section 69.5, subdivision (g)(6), together with the provision that it cross-references, section 110.1.

Section 69.5, subdivision (g)(6), provides this definition: “ ‘Full cash value of the replacement dwelling’ means its full cash value, determined in accordance with Section 110.1, as of the date on which it was purchased or new construction was completed, and after the purchase or the completion of *697new construction.” (§ 69.5, subd. (g)(6).) As relevant here, section 110.1 defines full cash value as the property’s fair market value on the date it “is purchased, is newly constructed, or changes ownership after the 1975 lien date____” (§ 110.1, subd. (a)(2).)11

According to the homeowners, section 110.1 requires valuation of the replacement dwelling based on two different dates: one for the land, which was purchased in 1979, and another for the structure, whose construction was completed in 2004. The homeowners stress that section 110.1 speaks in terms of full cash value, which is a distinct concept from fair market value under Proposition 13. (See City and County of San Francisco v. County of San Mateo, supra, 10 Cal.4th at p. 565, fn. 5.)

We find nothing in either of the cited provisions that mandates separate valuation dates for the land and structure. Section 69.5, subdivision (g)(6), provides for valuation of the replacement dwelling “as of the date on which it was purchased or new construction was completed . . . .” (§ 69.5, subd. (g)(6), italics added.) That language plainly contemplates a single date for valuation—either the date of purchase or the date of completion of construction. On its face, section 110.1 similarly suggests an “either/or” proposition, with full cash value established either when the replacement dwelling is purchased or when it is newly constructed. (§ 110.1, subd. (a)(2).)12

4. Time for Valuing the Replacement Dwelling: Other Provisions

Our conclusion in this case is further buttressed by other portions of section 69.5 that address timing issues.

One such timing provision appears in section 69.5, subdivision (h). That subdivision mandates transfer of the base year value of the original *698dwelling to the replacement dwelling if the homeowner has submitted a proper and timely claim for relief. As relevant here, subdivision (h) requires the assessor to “adjust the new base year value of the replacement dwelling ... as of the latest of the following dates: [ft] (A) The date the original property is sold, [ft] (B) The date the replacement dwelling is purchased, [ft] (C) The date the new construction of the replacement dwelling is completed.” (§ 69.5, subd. (h)(1), italics added.)13 Here, the latest of the three relevant dates is completion of construction of the replacement dwelling’s structure.

Another provision that bolsters our conclusion appears in section 69.5, subdivision (j). As provided in the pertinent part of that subdivision, section 69.5 applies to replacement dwellings that have been purchased or newly constructed by seniors after November 6, 1986 (for intracounty transfers), or November 9, 1988 (for intercounty transfers).14 The homeowners’ 1979 land purchase obviously predates the applicable November 1986 threshold provided in subdivision (j). And as this court has previously observed, “there is a long-standing and well-established presumption against the retroactive application of statutes.” (In re Marriage of Petropoulos (2001) 91 Cal.App.4th 161, 171 [110 Cal.Rptr.2d 111]; see Evangelatos v. Superior Court (1988) 44 Cal.3d 1188, 1209 [246 Cal.Rptr. 629, 753 P.2d 585] [“the absence of any express provision directing retroactive application strongly supports prospective operation . . .” of the initiative measure at issue there].) It thus appears that the homeowners’ 1979 land purchase is outside the temporal scope of the statute.

In an attempt to counter this conclusion, the homeowners offer an alternative reading of section 69.5, subdivision (j). In their view, the specified date in November 1986 for seniors’ intracounty transfers does not represent the outside temporal reach of the statute, but instead simply “was the first day a person could apply for Proposition 60 relief.” Considering section 69.5 as a *699whole in the context of the presumption against retroactivity, we find the homeowners’ argument unpersuasive.

*698“(h)(1) Upon the timely filing of a claim described in subparagraph (F) of paragraph (1) of subdivision (f), the assessor shall adjust the new base year value of the replacement dwelling in conformity with this section. This adjustment shall be made as of the latest of the following dates:
“(A) The date the original property is sold.
“(B) The date the replacement dwelling is purchased.
“(C) The date the new construction of the replacement dwelling is completed.”

*6995. Interplay with Proposition 13 Valuation Principles

In their insistence on treating acquisition of the land and construction of the structure as discrete events, the homeowners urge a Proposition 13 valuation analysis. Under that scheme, county assessors are required to “determine the new base year value for the portion of any taxable real property which has been newly constructed.” (§71.)

However, it is important to bear in mind that the issue in this case is not governed by Proposition 13. Rather, it is controlled by Proposition 60, as implemented through section 69.5. Although Proposition 60 grew out of Proposition 13, the two are distinct. And nothing in the plain language of section 69.5 warrants wholesale incorporation of Proposition 13 valuation principles into that statute. To the contrary, Proposition 60 represents an exception to those provisions of Proposition 13 that trigger a new base year value on change of ownership. By allowing seniors to avoid the impact of Proposition 13’s change of ownership provisions, Proposition 60 grants additional tax relief. But that relief is available only to those who qualify under the specific provisions set forth in section 69.5.

The homeowners nevertheless assert that the County’s interpretation of section 69.5, which we adopt here, “would lead to the absurd result of requiring it to keep ‘two sets of books.’ ” That assertion reflects a fundamental misunderstanding of the interplay between Proposition 13, which affords ongoing property tax relief, and Proposition 60, which permits a one-time-only basis transfer. Each of the two schemes has its own unique role in providing property tax relief, as this case demonstrates. Here, the homeowners have not lost the protection of Proposition 13 for the land that they purchased in 1979; that component of their property retains its historic base year value for property tax purposes. On the other hand, however, the homeowners have not gained the additional tax relief provided by Proposition 60, because their replacement dwelling—assessed as a unit as of the completion of construction of the structure—does not meet the “equal or lesser” test of section 69.5.

6. Conclusion

Under section 69.5, subdivision (g)(5), the replacement dwelling— including both land and structure—must be valued as of a single date, either the date that the property was purchased or the date that construction of the structure was complete, whichever is later. Here, the later date is June 2004, *700when construction of the structure was complete; the replacement dwelling was properly valued as a unit as of that date. A contrary conclusion is neither compelled nor suggested by section 69.5, subdivision (g)(6), or section 110.1, subdivision (a), or any other provision implementing Proposition 60.

DISPOSITION

We reverse the judgment for respondent homeowners, and we remand the matter to the trial court with directions to vacate its order granting respondents’ summary judgment motion and to enter a new order denying that motion.

This appeal comes to us on an agreed fact statement that the parties submitted in the trial court, which we rely on here. (Melchior v. New Line Productions, Inc. (2003) 106 Cal.App.4th 779, 782, fn. 1 [131 Cal.Rptr.2d 347].)

Three amicus curiae briefs were filed in support of the homeowners: one by the Howard Jarvis Taxpayers Association; a second by Bill Leonard and Michelle Steel, members of the State Board of Equalization; and a third by Stephen H. Bennett, a certified public accountant. One amicus curiae brief was filed in support of the County, by the State Board of Equalization.

In one request, the County seeks judicial notice of an excerpt from the Proposition 60 ballot pamphlet. In the other request, the State Board of Equalization, as amicus curiae, submits three exhibits for judicial notice: two of its letters to all county assessors, one dated March 19, 2002, and the other dated February 6, 2006, plus an excerpt from the Proposition 60 ballot pamphlet.

Despite having taken judicial notice of these documents, we need not rely on them in resolving this proceeding. (Doers v. Golden Gate Bridge etc. Dist. (1979) 23 Cal.3d 180, 184, fn. 1 [151 Cal.Rptr. 837, 588 P.2d 1261]; Kaufman & Broad Communities, Inc. v. Performance Plastering, Inc. (2005) 133 Cal.App.4th 26, 30 [34 Cal.Rptr.3d 520].)

Unspecified statutory citations are to the Revenue and Taxation Code.

Proposition 110 was approved in June 1990, further amending the Constitution to authorize legislative action permitting disabled homeowners to transfer their base year values to replacement dwellings. (Cal. Const., art. XU! A, § 2, subd. (a).) November 1998 saw the approval of Proposition 1, a constitutional amendment authorizing legislation for the transfer of base year values by owners of contaminated properties. (Cal. Const., art. XIII A, § 2, subd. (i).)

Section 69.5 also governs transfers of base year values by “severely and permanently disabled” homeowners. (§ 69.5, subd. (a)(1).) Section 69.4 covers transfers by owners of contaminated properties. (§ 69.4, subd. (a)(1).)

Though section 69.4 is not at issue here, we note that it defines “equal or lesser value” in similar terms as section 69.5, subdivision (g)(5). The last paragraph of section 69.4, subdivision (e)(2), thus provides: “For purposes of this paragraph, if the replacement property is, in part, purchased and, in part, newly constructed, the date the replacement property is ‘acquired or newly constructed’ is the date of acquisition or the date of completion of construction, whichever is later.”

Section 69.5, subdivision (a), states in pertinent part: “(a)(1) Notwithstanding any other provision of law, pursuant to subdivision (a) of Section 2 of Article XIII A of the California Constitution, any person over the age of 55 years . . . who resides in property that is eligible for the homeowners’ exemption . . . may transfer, subject to the conditions and limitations provided in this section, the base year value of that property to any replacement dwelling of equal or lesser value that is located within the same county and is purchased or newly constructed by that person as his or her principal residence within two years of the sale by that person of the original property, provided that the base year value of the original property shall not be transferred to the replacement dwelling until the original property is sold.”

Section 69.5, subdivision (g), states in pertinent part:

“For purposes of this section: [][]... [f]
“(2) ‘Base year value of the original property’ means its base year value, as determined in accordance with Section 110.1, with the adjustments permitted by subdivision (b) of Section 2 of Article XIH A of the California Constitution and subdivision (f) of Section 110.1, determined as of the date immediately prior to the date that the original property is sold by the claimant. . . .
“If the replacement dwelling is purchased or newly constructed after the transfer of the original property, ‘base year value of the original property’ also includes any inflation factor adjustments permitted by subdivision (f) of Section 110.1 for the period subsequent to the sale of the original property. The base year or years used to compute the ‘base year value of the original property’ shall be deemed to be the base year or years of any property to which that base year value is transferred pursuant to this section.
“(3) ‘Replacement dwelling’ means a building, structure, or other shelter constituting a place of abode, whether real property or personal property, that is owned and occupied by a claimant as his or her principal place of residence, and any land owned by the claimant on which the building, structure, or other shelter is situated. . . .
“(4) ‘Original property’ means a building, structure, or other shelter constituting a place of abode, whether real property or personal property, that is owned and occupied by a claimant as *693his or her principal place of residence, and any land owned by the claimant on which the building, structure, or other shelter is situated. . . .
“(5) ‘Equal or lesser value’ means that the amount of the full cash value of a replacement dwelling does not exceed one of the following:
“(A) One hundred percent of the amount of the full cash value of the original property if the replacement dwelling is purchased or newly constructed prior to the date of the sale of the original property.
“(B) One hundred and five percent of the amount of the full cash value of the original property if the replacement dwelling is purchased or newly constructed within the first year following the date of the sale of the original property.
“(C) One hundred and ten percent of the amount of the full cash value of the original property if the replacement dwelling is purchased or newly constructed within the second year following the date of the sale of the original property.
“For the purposes of this paragraph, except as otherwise provided in paragraph (4) of subdivision (h), if the replacement dwelling is, in part, purchased and, in part, newly constructed, the date the ‘replacement dwelling is purchased or newly constructed’ is the date of purchase or the date of completion of construction, whichever is later.
“(6) ‘Full cash value of the replacement dwelling’ means its full cash value, determined in accordance with Section 110.1, as of the date on which it was purchased or new construction was completed, and after the purchase or the completion of new construction.”

The Board’s interpretation is reflected in its letters to all assessors issued in March 2002 and February 2006, which we have judicially noticed.

The Board’s March 2002 letter states: “In calculating the full cash value of a newly constructed replacement property, both the land and the improvements must be reappraised at the time of completion . . .” with the value of previously owned land “adjusted at current market (full cash) value . . . when construction of the replacement dwelling is completed.”

In its February 2006 letter, the Board attached a set of questions and answers about section 69.5. That attachment includes this question and answer: “L2: If a lot is purchased and a home constructed, how is the new construction valued? [1] Answer. The assessor must determine the full cash value of the improved property as of the date of completion. A simple summation of the purchase price of the lot plus the cost of construction might not accurately reflect the full cash value of the replacement property upon completion of construction.” (Boldface omitted.)

The Board reaffirmed its position in an opinion letter issued in this case, dated August 2005. In that letter, the Board rejected the homeowners’ contention that the assessor should use “the appraised value for property tax purposes, not the fair market value.” After summarizing relevant statutory provisions, the Board concluded that “the value standard to be used for the replacement property for purposes of section 69.5 is the fair market value of the land and improvements as of the date of completion of new construction.”

To illustrate that point, the homeowners offer this example: “If a Proposition 60 claimant sold his original property in year 1; bought replacement dwelling land in year 2; then completed construction of the replacement dwelling residence in year 3 on the land he bought in year 2; is he under [section 69.5, subdivision (g)(5)] (B), the 105% rule, or is he under (C), the 110% rule? [f] The last paragraph of § 69.5(g)(5) gives the answer. [It is] (C), the later of the purchase (which occurred in year 2) or the completion of the construction (which occurred in year 3).”

Section 110.1, subdivision (a), reads in full as follows:

“(a) For purposes of subdivision (a) of Section 2 of Article XIII A of the California Constitution, ‘full cash value’ of real property, including possessory interests in real property, means the fair market value as determined pursuant to Section 110 for either of the following:
“(1) The 1975 lien date.
“(2) For property which is purchased, is newly constructed, or changes ownership after the 1975 lien date, either of the following:
“(A) The date on which a purchase or change in ownership occurs.
“(B) The date on which new construction is completed, and if uncompleted, on the lien date.”

This is evident in the current statutory language, quoted above in footnote 11. It is even more evident in superseded statutory language. Before section 110.1 was amended in 1985, the word “or” appeared at the end of subdivision (a)(2)(A). (See Stats. 1985, ch. 186, § 11, p. 1139; Historical and Statutory Notes, West’s Ann. Rev. & Tax. Code (2009 ed.) foil. § 110.1, p. 66.)

The pertinent part of section 69.5, subdivision (h), reads in full as follows:

Section 69.5, subdivision (j), thus states in pertinent part:

“(1) With respect to the transfer of base year value of original properties to replacement dwellings located in the same county, this section . . . shall apply to any replacement dwelling that is purchased or newly constructed on or after November 6, 1986.
“(2) With respect to the transfer of base year value of original properties to replacement dwellings located in different counties . . . , this section . . . shall not apply to any replacement dwelling which was purchased or newly constructed before November 9, 1988.”