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Updated 12 months ago on . Most recent reply

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Alan DeRossett
  • Investor
  • Thousand Oaks, CA
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fruit tree Tax exemption

Alan DeRossett
  • Investor
  • Thousand Oaks, CA
Posted

In California more then 5 fruit trees is considered a Orchard for tax purposes, I can get the Orchard Tax exemption for first 4 years after planting. has any one tried this with multifamily properties? I know of single family homes that have. 

Think it also applies to multi family dwellings now might be worth a few thousand in Property tax reduction plus tenants like the Fruit trees. 

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Natalie Kolodij
  • Tax Strategist| National Tax Educator| Accepting New Clients
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Natalie Kolodij
  • Tax Strategist| National Tax Educator| Accepting New Clients
ModeratorReplied

Okay I don't do much business in California so I've never come across this before. 


But this is an exemption on the taxable improvement value of those trees or vines it sounds like....

So you're paying the same property tax assessment as you would have with 0 trees or vines planted. 

You just get to exclude those trees from the improvement value from the property. 

And then year 6 you pay property tax on those trees. So why not just skip the trees. 

"(g) ENROLLMENT. Fruit and nut-bearing trees and grapevines are not improvements while exempt from taxation. If the assessor places a value for such trees and vines on the roll, the entry shall be made in the personal property column. After the exemption expires, their value is to be enrolled in the improvement column. (See section 105, Revenue and Taxation Code.)"

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Kolodij Tax & Consulting

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