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California BOE Appraiser Certification study materials
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California BOE Appraiser Certification practice questions

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Question 1Property Tax

Under California law, what is the standard assessment ratio applied to the full cash value of property for property tax purposes?

  1. 50 percent
  2. 1 percent
  3. 100 percent Correct answer.
  4. 25 percent

Explanation

California assesses property at 100 percent of full cash value, meaning assessed value equals market value as defined by the Constitution. The 1 percent figure is the general tax rate levied on that assessed value, not the assessment ratio. Confusing the assessment ratio with the tax rate is a common error.

Question 2Property Tax

Proposition 13 generally limits annual increases in the assessed value of a property to which maximum?

  1. 2 percent per year Correct answer.
  2. The rate of inflation, with no cap
  3. 5 percent per year
  4. 10 percent per year

Explanation

Proposition 13 caps annual inflationary adjustments to a property's base year value at 2 percent per year. This cap applies regardless of how rapidly market values rise. A reassessment triggered by change of ownership or new construction can reset the base year value.

Question 3Property Tax

What is the maximum general ad valorem property tax rate allowed under Article XIII A of the California Constitution?

  1. 1.5 percent
  2. 2 percent
  3. 1 percent Correct answer.
  4. 0.5 percent

Explanation

Article XIII A limits the general property tax rate to 1 percent of assessed value, often called the one percent limitation. Voter-approved debt and certain special assessments may be added on top of that rate. The 1 percent cap applies to the general levy only.

Question 4Property Tax

A property is purchased and the ownership change is recorded. When does the new base year value generally take effect?

  1. The date escrow closes Correct answer.
  2. The date the deed is recorded
  3. The next fiscal year after a two-year waiting period
  4. The January 1 following the change of ownership

Explanation

A change of ownership triggers reappraisal as of the date of the ownership change, and the new base year value is enrolled for that date. The lien date of January 1 is the standard valuation date for the annual roll, but a midyear change creates a supplemental assessment. The effective date is tied to the transfer, not to recording or a waiting period.

Question 5Property Tax

Which event most clearly constitutes a change of ownership requiring reappraisal of real property in California?

  1. Entering a month-to-month rental agreement
  2. Recording a lease for a term of 35 years
  3. Transferring a 50 percent present interest in the property Correct answer.
  4. Granting an easement for utility lines

Explanation

A transfer of a present interest in real property, including a partial interest such as 50 percent, is a change of ownership that triggers reappraisal. Leases of 35 years or more can also constitute a change of ownership, which makes the short lease option ineligible. Easements that do not transfer a beneficial interest generally are not reappraisals.

Question 6Property Tax

A parent transfers a principal residence to a child. Under current California law, how is the property's assessed value treated for the child?

  1. The property is exempt from property tax for one year
  2. The property is reassessed at full market value with no exclusion
  3. The base year value transfers without limitation
  4. The base year value transfers only if the child uses it as a principal residence and the exclusion requirements are met Correct answer.

Explanation

The parent-child exclusion allows a principal residence to retain the transferor's base year value only when the property continues as the child's principal residence and the statutory requirements are satisfied. If those conditions are not met, the property is reassessed at current market value. The exclusion is conditional rather than automatic.

Question 7Property Tax

Which property is generally exempt from California property tax under the welfare exemption?

  1. Property owned and operated by a nonprofit for charitable purposes Correct answer.
  2. A commercial office building leased at market rent
  3. A for-profit apartment complex
  4. A vacation home held for personal use

Explanation

The welfare exemption applies to property owned and used by qualifying nonprofit organizations for religious, charitable, scientific, or hospital purposes. The organization must meet ownership and use requirements and file the appropriate claim. For-profit and personal-use properties do not qualify.

Question 8Property Tax

The homeowners' exemption reduces the taxable value of a qualifying owner-occupied residence by what amount?

  1. $25,000
  2. $7,000 Correct answer.
  3. $50,000
  4. $100,000

Explanation

The homeowners' exemption exempts $7,000 of the assessed value of a dwelling occupied as the owner's principal residence. The owner must file a claim, and the exemption applies to the secured roll. It is a modest reduction compared with the total assessed value.

Question 9Property Tax

What is the lien date for California property tax purposes?

  1. July 1
  2. April 15
  3. December 31
  4. January 1 Correct answer.

Explanation

The lien date is January 1, at 12:01 a.m., when property is valued and the tax lien attaches. The fiscal year runs from July 1 through June 30, but the valuation date is January 1. Tax bills are issued based on the January 1 roll.

Question 10Property Tax

A property's base year value is $400,000 and the consumer price index rises by 3 percent. What is the maximum assessed value for the following year under Proposition 13?

  1. $420,000
  2. $400,000
  3. $412,000
  4. $408,000 Correct answer.

Explanation

The annual adjustment is capped at 2 percent, so the assessed value may rise to $400,000 times 1.02, which equals $408,000. The 3 percent inflation figure exceeds the cap and cannot be used in full. The base year value itself remains the starting point for future adjustments.

Question 11Property Tax

Which statement best describes a supplemental assessment?

  1. It applies only to personal property
  2. It is issued every five years after a cyclical reappraisal
  3. It captures the difference in taxes caused by a midyear change in assessed value Correct answer.
  4. It replaces the regular tax bill for the entire year

Explanation

A supplemental assessment is issued when property is reappraised due to a change of ownership or new construction after the lien date. It captures the difference between the old and new assessed values for the portion of the year remaining. The regular roll continues to apply separately.

Question 12Property Tax

An assessor discovers that a property was erroneously assessed too low for the prior year. What is the general rule for correcting the error?

  1. The assessor may correct the roll and issue a refund or additional assessment within the statutory period Correct answer.
  2. The assessor must wait until the next change of ownership
  3. Only the taxpayer may request a correction
  4. The error is permanently uncorrectable

Explanation

Assessors have authority to correct errors on the roll within statutory time limits, which may result in a refund or an escape assessment. Escape assessments capture value that was omitted from the roll. The correction process is not limited to change-of-ownership events.

Question 13Property Tax

Which body generally hears a taxpayer's application for reduction of an assessment in the first instance?

  1. The superior court
  2. The county board of supervisors
  3. The assessment appeals board Correct answer.
  4. The state legislature

Explanation

A taxpayer contests an assessment by filing an application with the county assessment appeals board, which hears the matter and may adjust the value. The board of supervisors sets policy but does not typically hear appeals. Court review follows only after the administrative process.

Question 14Property Tax

A taxpayer files an assessment appeal. Which burden generally applies at the hearing?

  1. The appeals board must independently investigate the value
  2. The taxpayer must show the assessment is incorrect by a preponderance of the evidence Correct answer.
  3. No burden applies because the board decides informally
  4. The assessor must prove the assessment is correct beyond a reasonable doubt

Explanation

The taxpayer generally bears the burden of proving that the assessor's determination is incorrect, typically by a preponderance of the evidence. The assessor's value is presumed correct until rebutted. The board does not conduct an independent investigation in place of the parties.

Question 15Property Tax

Which of the following is classified as personal property for California property tax purposes?

  1. A permanent fence
  2. A warehouse building
  3. Machinery and equipment used in a factory Correct answer.
  4. The land under a parking lot

Explanation

Machinery and equipment used in business operations are generally taxable personal property, assessed separately from real property. Buildings, land, and permanent improvements are real property. The distinction affects how and when the property is assessed.

Question 16Property Tax

Business personal property is generally reported to the assessor using which filing?

  1. A business property statement Correct answer.
  2. A homeowners' exemption claim
  3. A preliminary change of ownership report
  4. A welfare exemption application

Explanation

Taxpayers report business personal property annually on a business property statement, which lists acquisitions, disposals, and costs. The assessor uses this information to value the property. The other forms address different events or exemptions.

Question 17Property Tax

A property owner constructs a new addition that increases the value of the property. How is the addition treated under Proposition 13?

  1. Only the new construction is added at current market value to the existing base year value Correct answer.
  2. The entire property is reassessed to market value
  3. The addition is valued at the original base year value of the property
  4. The addition is exempt from assessment

Explanation

New construction is appraised at current market value and added to the existing base year value, so the original property is not fully reassessed. This preserves the Proposition 13 protection for the previously assessed portion. The combined value becomes the new base year value.

Question 18Property Tax

Which of the following would most likely qualify for the disabled veterans' property tax exemption?

  1. A surviving spouse regardless of the veteran's disability rating
  2. Any veteran who served during wartime
  3. A veteran with a 30 percent service-connected disability
  4. A veteran with a service-connected disability meeting the statutory rating threshold Correct answer.

Explanation

The disabled veterans' exemption requires a service-connected disability rating that meets or exceeds the statutory threshold, with the exemption amount depending on the rating and income. A rating below the threshold does not qualify. Wartime service alone is insufficient.

Question 19Property Tax

What is the primary purpose of Proposition 8 in the context of California property tax assessment?

  1. To allow temporary reductions to assessed value when market value falls below the factored base year value Correct answer.
  2. To increase the annual inflation cap to 5 percent
  3. To exempt all residential property from taxation
  4. To eliminate the assessment appeals process

Explanation

Proposition 8 permits an assessor to enroll the lesser of the factored base year value or the current market value when a decline in value occurs. The reduction is temporary and the value may rise again as the market recovers, subject to the 2 percent cap. The base year value is not permanently changed.

Question 20Property Tax

An assessor is applying a decline-in-value review. Which value should be enrolled when market value has fallen below the factored base year value?

  1. The current market value Correct answer.
  2. The original base year value
  3. The factored base year value
  4. The prior year's assessed value plus 2 percent

Explanation

When a decline in value is established, the assessor enrolls the current market value because it is lower than the factored base year value. The reduction is temporary and the property is reviewed in later years. The factored base year value remains the ceiling when the market recovers.

Question 21Property Tax

Which of the following best describes the treatment of a possessory interest in publicly owned real property?

  1. It may be taxable as personal property to the holder of the interest Correct answer.
  2. It is never taxable
  3. It is taxable only if the public owner consents
  4. It is exempt because the underlying land is publicly owned

Explanation

A private possessory interest in publicly owned property can be assessed to the holder because the holder enjoys the beneficial use of the property. The exemption of the public owner does not automatically extend to the private possessor. The interest is valued based on the rights held.

Question 22Property Tax

A taxpayer disagrees with a decision of the county assessment appeals board. What is the general next step?

  1. File a petition for writ of administrative mandamus in superior court Correct answer.
  2. Request the governor to overrule the board
  3. Appeal directly to the State Board of Equalization for a new trial
  4. File a new application with the same appeals board

Explanation

Judicial review of an appeals board decision is generally obtained by a petition for writ of administrative mandamus in superior court. The court reviews the administrative record rather than conducting a new trial. Filing another application with the same board is not the proper avenue.

Question 23Property Tax

Which factor is most relevant to valuing an apartment building using the income approach?

  1. The replacement cost of the building alone
  2. The assessed value of neighboring parcels
  3. The owner's original purchase price
  4. The net operating income and an appropriate capitalization rate Correct answer.

Explanation

The income approach capitalizes expected net operating income at a rate reflecting risk and market return. Purchase price reflects a past transaction rather than current income potential. Replacement cost alone ignores the income-producing nature of the property.

Question 24Property Tax

Which approach to value is generally most appropriate for a special-purpose property such as a refinery with no comparable sales?

  1. The income approach
  2. The cost approach Correct answer.
  3. The sales comparison approach
  4. The stock market approach

Explanation

The cost approach is often used for special-purpose properties that rarely sell and do not generate income in a typical manner. It estimates replacement or reproduction cost less depreciation plus land value. Sales comparison and income approaches may lack reliable data for such properties.

Question 25Property Tax

What is the consequence of failing to file a timely business property statement when requested by the assessor?

  1. The property becomes permanently exempt
  2. The assessor must waive all taxes for the year
  3. The taxpayer receives a refund
  4. The assessor may estimate the value and impose a penalty Correct answer.

Explanation

If a taxpayer fails to file a required business property statement, the assessor may estimate the value from available information and apply a statutory penalty. The penalty encourages compliance with the reporting requirement. The property does not become exempt or generate a refund.

Question 26Property Tax

Under California law, what is the standard assessment ratio applied to full cash value to determine a property's taxable value?

  1. 50 percent
  2. 100 percent Correct answer.
  3. 25 percent
  4. 1 percent

Explanation

Article XIII of the California Constitution requires all taxable property to be assessed at its full cash value, which is a 100 percent assessment ratio. The 1 percent figure is the general tax rate, not the assessment ratio, so the two are easily confused. Assessors enroll value, not tax; the auditor then applies the rate to the enrolled value.

Question 27Property Tax

A county assessor is determining whether a parcel is taxable real property or exempt property. Which constitutional provision is the primary source of the assessor's authority over property taxation in California?

  1. The Government Code alone
  2. The Revenue and Taxation Code alone
  3. Article XVI of the California Constitution
  4. Article XIII of the California Constitution Correct answer.

Explanation

Article XIII of the California Constitution establishes the framework for property taxation, including valuation standards, the assessment ratio, and exemptions. The Legislature implements this framework through the Revenue and Taxation Code, but the constitutional provision is the source of authority. Statutes cannot override the constitutional requirements.

Question 28Property Tax

Which official is responsible for determining the assessed value of locally assessed property in a California county?

  1. The county board of supervisors
  2. The county assessor Correct answer.
  3. The county tax collector
  4. The county auditor-controller

Explanation

The county assessor is the elected or appointed official charged with discovering, valuing, and enrolling locally assessed property. The auditor-controller extends the tax roll and allocates revenue, while the tax collector bills and collects. The board of supervisors sits as the appeals board in many counties but does not perform the initial valuation.

Question 29Property Tax

Which type of property is assessed by the State Board of Equalization rather than by the county assessor?

  1. A single-family residence
  2. A vacant residential lot
  3. A locally owned retail store
  4. Unitary property of a regulated railroad Correct answer.

Explanation

The State Board of Equalization assesses certain state-assessed properties, including the operating property of regulated railroads and utilities, under a unitary valuation approach. Locally owned real property such as homes, stores, and vacant lots is assessed by the county assessor. This division of responsibility is set by the constitution and statutes.

Question 30Property Tax

A taxpayer purchases a home for $600,000 in a county where the prior owner's base year value was $250,000. What value does the assessor generally enroll for the year following the change in ownership?

  1. $600,000 reduced by the homeowners' exemption only
  2. $600,000 as the new base year value Correct answer.
  3. $425,000 as an average of the two figures
  4. $250,000 continued from the prior owner

Explanation

A change in ownership causes a reappraisal at full cash value as of the date of transfer, which becomes the new base year value. The prior owner's base year value does not carry over except for limited exclusions such as parent-child transfers. The homeowners' exemption reduces taxable value but does not alter the base year value.

Question 31Property Tax

An owner adds a swimming pool to an existing residence. How is the pool generally treated for property tax purposes?

  1. It is assessed at a flat statutory amount.
  2. It is exempt as a residential improvement.
  3. It is assessed only when the home is sold.
  4. It is a new construction subject to supplemental assessment. Correct answer.

Explanation

New construction that increases the value of real property is appraised at completion and enrolled as a supplemental assessment for the remainder of the year. The added value is then merged into the base year value for future years. The fact that the improvement is residential does not exempt it.

Question 32Property Tax

A property suffers a fire and is substantially damaged. Which provision allows the owner to rebuild without an increase in assessed value beyond the pre-damage figure?

  1. The base year value transfer for disaster relief Correct answer.
  2. The timberland production zone
  3. The homeowners' exemption
  4. The welfare exemption

Explanation

When real property is damaged or destroyed by a disaster, the owner may rebuild and retain the pre-damage base year value, provided the replacement is substantially equivalent and timely. This relief prevents a reassessment caused solely by reconstruction. The other provisions address unrelated exemptions or land use programs.

Question 33Property Tax

Which of the following properties is most likely eligible for the church exemption?

  1. A vacant lot owned by a religious organization
  2. A commercial office building owned by a church and rented at market rates
  3. A building leased to a religious organization for a nominal rent
  4. A building owned and used by a religious organization for worship Correct answer.

Explanation

The church exemption applies to property owned by a religious organization and used exclusively for religious worship or related purposes. Property leased to a church may qualify only under limited conditions and generally requires a different exemption. Income-producing property and vacant land typically do not qualify.

Question 34Property Tax

A taxpayer believes the assessor's value is too high and wishes to appeal. Within what general timeframe must an application for reduction be filed for a regular assessment?

  1. Within 60 days of the tax bill mailing
  2. At any time before the tax becomes delinquent
  3. Within 30 days of the enrollment date
  4. During the period from July 2 through September 15 of the year following enrollment Correct answer.

Explanation

For a regular assessment, the application must generally be filed during the period beginning July 2 and ending September 15 following the enrollment. Filing deadlines are jurisdictional, so a late application cannot be heard on the merits. Supplemental assessments follow a different filing period tied to the notice date.

Question 35Property Tax

Which approach is generally used to value a fee simple interest in a single-family residence for property tax purposes?

  1. The income approach
  2. The gross rent multiplier approach
  3. The cost approach
  4. The sales comparison approach Correct answer.

Explanation

Residential property is typically valued using the sales comparison approach because recent sales of similar homes provide reliable evidence of market value. The cost approach is more useful for special-purpose or new construction, and the income approach applies to income-producing property. The gross rent multiplier is a simplified income technique.

Question 36Property Tax

A property's base year value is $500,000, and the applicable inflation factor is 2 percent. What is the maximum assessed value for the new lien date, assuming no change in ownership or new construction?

  1. $500,000
  2. $520,000
  3. $502,000
  4. $510,000 Correct answer.

Explanation

The assessed value may be adjusted annually by an inflation factor not exceeding 2 percent, applied to the prior year's base year value. Two percent of $500,000 is $10,000, producing $510,000. The adjustment cannot exceed the actual inflation rate, but 2 percent is the statutory cap.

Question 37Property Tax

Which of the following best describes the treatment of a leasehold interest in tax-exempt government-owned land that is privately held?

  1. It is assessed only when the lease is sold.
  2. It may be assessed as a possessory interest. Correct answer.
  3. It is assessed as personal property.
  4. It is always exempt because the land is publicly owned.

Explanation

A private leasehold interest in publicly owned real property is generally taxable as a possessory interest, even though the underlying fee is exempt. The assessor values the right of possession and use, not the government's fee interest. The taxability arises from the private benefit derived from public property.

Question 38Property Tax

A county assessor is preparing the assessment roll. Which value must be enrolled when a property's market value has fallen below its factored base year value?

  1. The lower of the factored base year value or market value Correct answer.
  2. The original base year value without adjustment
  3. The highest value the property has reached
  4. The factored base year value in all cases

Explanation

Under Proposition 8, the assessor must enroll the lesser of the factored base year value or the property's market value as of the lien date. If market value recovers, the value may be restored to the factored base year value. The original base year value is not used without the inflation adjustment.

Question 39Property Tax

Which statement best describes the effect of a general plan designation on the valuation of property for property tax purposes?

  1. A general plan designation exempts the property from property tax.
  2. A general plan designation automatically triggers a change in ownership.
  3. Zoning and land use restrictions are relevant to highest and best use but do not themselves change ownership. Correct answer.
  4. A general plan designation fixes the assessed value permanently.

Explanation

Land use controls such as zoning and general plan designations influence the highest and best use and therefore value, but they are not changes in ownership. They do not create exemptions or lock in assessed values. The assessor considers them as part of the valuation analysis.

Question 40Property Tax

An assessor discovers that a property was underassessed for the prior year due to a clerical error. What is the general rule for correcting the roll?

  1. The assessor may never correct a roll once it is completed.
  2. The assessor may correct only the prior year's roll.
  3. The assessor may correct only the current year's roll.
  4. The assessor may correct the roll for the current year and the prior year under specified statutes. Correct answer.

Explanation

California law allows the assessor to correct errors on the roll, with the scope of correction depending on the type of error and the year involved. Generally, corrections may extend to the current year and the preceding year for certain errors. The roll is not immutable once delivered.

Question 41Property Tax

Which of the following is generally classified as real property for California property tax purposes?

  1. Office furniture
  2. Inventory held for sale
  3. A delivery truck used in a business
  4. A building affixed to the land Correct answer.

Explanation

Real property includes land and improvements permanently affixed to it, such as buildings. Business equipment, vehicles, and inventory are generally classified as personal property. The distinction determines which property statement and valuation rules apply.

Question 42Property Tax

Which statement best describes the treatment of a manufactured home that has been converted to a fixture on the land?

  1. It is assessed as real property with the land. Correct answer.
  2. It is exempt from property tax.
  3. It is always assessed as personal property.
  4. It is assessed only by the state.

Explanation

When a manufactured home is converted to a fixture and the owner records the required documents, it becomes part of the real property and is assessed with the land. Until conversion, it may be assessed as personal property or under separate procedures. The conversion changes the assessment treatment.

Question 43Property Tax

A business owns equipment with an original cost of $100,000 and a reported replacement cost of $120,000. The assessor applies a percent good factor of 50 percent. What value is enrolled?

  1. $120,000
  2. $100,000
  3. $60,000 Correct answer.
  4. $50,000

Explanation

Business personal property is generally valued using replacement cost less depreciation, applied through percent good factors. Fifty percent of the $120,000 replacement cost is $60,000. Original cost alone is not the measure once the assessor applies the appropriate factor.

Question 44Property Tax

Which of the following is the primary purpose of the timberland production zone designation?

  1. To require annual reassessment at market value
  2. To transfer timberland to state ownership
  3. To exempt timberland from all property taxes
  4. To restrict land to timber production and value it under a special program Correct answer.

Explanation

The timberland production zone restricts land to timber production and provides for valuation under a special program rather than ordinary market value. It is not a complete exemption, and ownership does not transfer to the state. Annual reassessment at market value would defeat the purpose of the program.

Question 45Property Tax

Which statement best describes the treatment of open-space land under a Williamson Act contract?

  1. It is assessed only when the contract expires.
  2. It is assessed at its highest and best use.
  3. It is valued based on its restricted use rather than its unrestricted market value. Correct answer.
  4. It is exempt from property tax entirely.

Explanation

The Williamson Act provides for valuation of land under an enforceable open-space contract based on its restricted agricultural or open-space use. This generally lowers assessed value compared with unrestricted market value. The land remains taxable and is not exempt.

Question 46Property Tax

An assessor is valuing a special-purpose property such as a refinery with no comparable sales and no rental income. Which approach is generally most appropriate?

  1. The cost approach Correct answer.
  2. The sales comparison approach
  3. The income approach
  4. The gross income multiplier approach

Explanation

For special-purpose properties with no comparable sales and no income stream, the cost approach is generally the most reliable method. It estimates replacement cost new and deducts physical, functional, and economic obsolescence. The other approaches depend on market data or income that such properties typically lack.

Question 47Property Tax

A taxpayer receives a notice of supplemental assessment. Which statement best describes the taxpayer's appeal rights?

  1. The taxpayer must appeal directly to the superior court.
  2. The taxpayer must wait for the regular roll to appeal.
  3. The taxpayer has no right to appeal a supplemental assessment.
  4. The taxpayer may file an application within the period specified for supplemental assessments. Correct answer.

Explanation

Supplemental assessments carry their own application filing period, generally tied to the date of the notice. The taxpayer need not wait for the regular roll and is not required to go directly to court. The appeals board hears the application in the first instance.

Question 48Property Tax

Which statement best describes the assessor's duty regarding the property statement filed by a business?

  1. The assessor must accept the taxpayer's reported value without review.
  2. The assessor may request the statement and use it to determine value, subject to audit. Correct answer.
  3. The assessor may ignore the statement entirely.
  4. The assessor must forward the statement to the state for valuation.

Explanation

The property statement is a discovery tool that the assessor may require and use to determine value, and the reported data are subject to audit. The assessor is not bound by the taxpayer's opinion of value. Locally assessed business property remains the county's responsibility.

Question 49Property Tax

Which statement best describes how a change in ownership of a legal entity holding real property is generally treated?

  1. Entity transfers are always exempt from reassessment.
  2. Entity ownership changes never affect the property's assessment.
  3. Only transfers of 100 percent of an entity trigger reassessment.
  4. Transfers of certain ownership interests in legal entities may constitute a change in ownership of the entity's real property. Correct answer.

Explanation

California law provides that transfers of ownership interests in legal entities, such as certain cumulative transfers of more than 50 percent, may constitute a change in ownership of the entity's real property. Not every transfer qualifies, and the rules are detailed. The blanket statements that entity changes never matter or are always exempt are incorrect.

Question 50Property Tax

A taxpayer's residence has a factored base year value of $300,000, and the taxpayer qualifies for the homeowners' exemption. What is the taxable value before any other adjustments?

  1. $307,000
  2. $299,000
  3. $300,000
  4. $293,000 Correct answer.

Explanation

The homeowners' exemption reduces taxable value by $7,000 for a qualifying owner-occupied residence. Subtracting $7,000 from $300,000 yields $293,000. The exemption reduces taxable value, not the base year value itself.