The 2017/18 California Consumer Price Index Adjustment
The California Board of Equalization has updated the 2017/2018 Consumer Price Index adjustments.
Revenue and Taxation Code section 51 provides that base year values determined under section 110.1 shall be compounded annually by an inflation factor, not to exceed 2 percent. Section 51(a)(1)(C) provides that, for any assessment year commencing on or after January 1, 1998, the inflation factor shall be the percentage change, rounded to the nearest one-thousandth of 1 percent, from October of the prior fiscal year to October of the current fiscal year in the California Consumer Price Index (CCPI) for all items, as determined by the California Department of Industrial Relations.
Information from the Department of Industrial Relations shows that the CCPI increased from 251.255 in October 2015 to 257.836 in October 2016. Rounded to the nearest one-thousandth of 1 percent, this is an increase of 2.619 percent.
Accordingly, please prepare your 2017 assessment roll using an inflation factor of 1.02.