Which statement about the PCOR is true?

• A. It determines current market value.
• B. It determines the base year value.
• C. It determines replacement cost.
• D. It determines the current as-of value for the year.

Answer: (B)

The PCOR’s purpose is to establish the base year value for a property when ownership changes. California’s Prop 13 base value is set at a change of ownership, and the Property Change of Ownership Report provides the facts the assessor uses to determine that base year value. It is not used to set current market value, replacement cost, or a current “as-of” value for the year. The annual property tax bill is then based on that base year value, with increases limited to about 2% per year or adjustments for new construction, rather than on the current market value.