A new construction exclusion may be applied to property that is being developed with the intent to resell. This exclusion may reduce or eliminate supplemental taxes for new construction.
California Revenue and Taxation Code Section 75.12
Requirements
A 
claim form must be filed with the Assessor prior to or within 30 days from the start of construction.
Construction has started if any physical activity on the property has resulted in visible changes that are recognized as the initial steps for construction. (Activities include clearing and grading land, excavation, layout of foundations, installation of temporary structures, and demolition of existing structures or fixtures.)
The property owner is responsible for notifying the Assessor within 45 days of the earliest date that any of the following events occur:
- The property changes ownership pursuant to an unrecorded contract of sale.
- The property is rented or leased.
- The property is occupied or used by the owner or with the owner’s consent and the occupancy of the property is other than as a model home or any use pertinent to the marketing of the property.
Limitations
The exclusion only applies to supplemental assessments for new construction.
The exclusion does not apply to a supplemental assessment generated by a change in ownership.
The exclusion does not apply to the property's annual assessment or annual property tax.
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