74.
(a) For purposes of subdivision (a) of Section 2 of Article XIII A of the Constitution, “newly constructed” does not include the construction or installation of any fire sprinkler system, other fire extinguishing system, fire detection system, or fire-related egress improvement that is constructed or installed on or after November 7, 1984.(b) Notwithstanding any other provision of this chapter or Chapter 3.5 (commencing with Section 75), neither “newly constructed” nor “new construction” includes the construction or installation of any fire sprinkler system, other fire extinguishing system, fire detection system, or fire-related egress improvement that is constructed or installed on or after November 7, 1984.
(c) For purposes of this section:
(1) “Fire sprinkler system” means any system intended to discharge water for the purpose of suppressing or extinguishing a fire, and includes a fire sprinkler system that derives its water from the domestic water supply of the building or structure of which it is a part.
(2) “Other fire extinguishing system” means any system intended to suppress or to extinguish a fire other than by discharging water upon the fire. An “other fire extinguishing system” includes, but is not limited to, a component or application that, solely or primarily for the purposes of fire suppression or extinguishment, is made part of the heating, ventilating, or air-conditioning system of a building or structure, a wet chemical system, or a dry chemical system.
(3) “Fire detection system” means any system or appliance intended to detect combustion, or the products thereof, and to activate an alarm or signal, whether audio, visual, or otherwise, including all equipment used to transmit fire alarm activations and related signals to a remote location. A fire detection system includes any system that serves additional functions, but this section shall only apply with respect to that portion of a system that is for fire detection purposes. No portion of a fire detection system as described in this paragraph shall be deemed to be personal property, or shall be deemed to be excluded from that fire detection system, by reason of being owned or controlled by a person other than the owner of property upon which the fire detection system was constructed or installed.
(4) “Fire-related egress improvement” means any improvement intended to do either of the following:
(A) Provide any new, or improve any existing, means of egress for individuals from a structure, or any portion thereof, in which a fire is in progress, as to which there is an imminent threat that a fire may soon be in progress, or as to which individuals therein might be subjected to health hazards or the risk of physical injury due to a fire elsewhere.
(B) With respect to individuals who for any reason cannot evacuate a structure in which a fire is in progress, provide a means of safeguarding, or increasing the safety of, those individuals until the time that the rescue of those individuals can be effected.
(5) “Existing building” means any building or structure already erected at the time that a fire sprinkler system, other fire extinguishing system, fire detection system, or fire-related egress improvement is constructed or installed in that building or structure.
(6) “Occupy or use” has the same meaning as defined in Section 75.12.
(d) Any system or improvement referred to in this section shall be deemed to have been constructed or installed on or after November 7, 1984, if the actual construction or installation thereof is completed on or after November 7, 1984, regardless of when the actual construction or installation thereof was commenced or any building permit pertaining thereto was issued.
(e) This section applies only to fire sprinkler systems, other fire extinguishing systems, fire detection systems, and fire-related egress improvements, as defined in this section, that are constructed or installed in an existing building.
(f) (1) On and after the operative date of the act that added this subdivision, this section applies to fire sprinkler systems, other fire extinguishing systems, or fire detection systems that are constructed or installed in a new building that is completed on and after the operative date of the act that added this subdivision.
(2) For purposes of this subdivision, “the construction or installation of any fire sprinkler system, other fire extinguishing system, or fire detection system” includes the construction of any fire sprinkler system, other fire extinguishing system, or fire detection system incorporated by the owner-builder in the initial construction of a new building that the owner-builder does not intend to occupy or use. The exclusion from “newly constructed” provided by this paragraph applies to the initial purchaser who purchased the new building from the owner-builder, but only if the owner-builder did not receive an exclusion under this section for the same system and only if the initial purchaser purchased the new building prior to that building becoming subject to reassessment to the owner-builder, as described in subdivision (d) of Section 75.12. The assessor shall administer this paragraph in the following manner:
(A) The initial purchaser of the building shall file a claim with the assessor and provide to the assessor any documents necessary to identify the value attributable to the fire sprinkler system, other fire extinguishing system, or fire detection system included in the purchase price of the building.
(B) The assessor shall evaluate the claim and determine the portion of the purchase price that is attributable to the fire sprinkler system, other fire extinguishing system, or fire detection system. The assessor shall then reduce the new base-year value established as a result of the change in ownership of the building to reflect that portion of the value attributable to the fire sprinkler system, other fire extinguishing system, or fire detection system.
(3) For purposes of this subdivision, in the case of a new nonresidential building, “fire sprinkler system, other fire extinguishing system, or fire detection system” does not include a fire sprinkler system, other fire extinguishing system, or fire detection system that is required by the California Fire Code to be included in the new building.
(4) The extension of the new construction exclusion to the initial purchaser of a newly constructed new building shall remain in effect only until there is a subsequent change in ownership of the building.
(5) The State Board of Equalization, in consultation with the California Assessor’s Association, shall prescribe the manner and form for claiming the new construction exclusions required by this subdivision.
(6) For purposes of this subdivision, “new building” means a building, structure, or portion of a building or structure that was not already erected before a fire sprinkler system, other fire extinguishing system, or fire detection system was constructed in that building or structure.