California Revenue and Taxation Code

§ 107.7

RTC § 107.7 Effective Jan 1, 2009Div. 1 · Part 1 · Ch. 1

Statute text

(a)When valuing possessory interests in real property created by the right to place wires, conduits, and appurtenances along or across public streets, rights-of-way, or public easements contained in either a cable franchise or license granted pursuant to Section 53066 of the Government Code (a “cable possessory interest”) or a state franchise to provide video service pursuant to Section 5840 of the Public Utilities Code (a “video possessory interest”), the assessor shall value these possessory interests consistent with the requirements of Section 401. The methods of valuation shall include, but not be limited to, the comparable sales method, the income method (including, but not limited to, capitalizing rent), or the cost method.

(b)(1) The preferred method of valuation of a cable television possessory interest or video service possessory interest by the assessor is capitalizing the annual rent, using an appropriate capitalization rate.

(2)For purposes of this section, the annual rent shall be that portion of that franchise fee received that is determined to be payment for the cable possessory interest or video service possessory interest for the actual remaining term or the reasonably anticipated term of the franchise or license or the appropriate economic rent. If the assessor does not use a portion of the franchise fee as the economic rent, the resulting assessments shall not benefit from any presumption of correctness.

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Legislative history

Amended by Stats. 2008, Ch. 179, Sec. 197. Effective January 1, 2009.