AB 386

This bill provides that, for property tax assessment purposes, to determine the

value of property using generally accepted appraisal methods, an assessor must

consider all of the following as comparable to the property being assessed:

1. Sales or rentals of properties exhibiting the same or a similar highest and

best use with placement in the same real estate market segment.

2. Sales or rentals of properties that are similar to the property being assessed

with regard to age, condition, use, type of construction, location, design, physical

features, and economic characteristics.

The bill defines “real estate market segment” to mean a pool of potential buyers

and sellers that typically buy or sell properties similar to the property being

assessed, including potential buyers who are investors or owner-occupants.

The bill also provides that a property is not comparable to the property being

assessed if the seller has placed restrictions on the highest and best use of the

property or if the property is dark property and the property being assessed is not

dark property. The bill defines “dark property” as property that is vacant or

unoccupied beyond the normal period for property in the same real estate market

segment.