Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2011
 

Revenue and Taxation Code

Property Taxation

Part 2. Assessment

Chapter 3. Assessment Generally

Article 2.5. Change in Ownership Reporting*

Section 482

482. Failure to file statement. (a) If a person or legal entity required to file a statement described in Section 480 fails to do so within 45 days from the date of a written request by the assessor, a penalty of either: (1) one hundred dollars ($100), or (2) 10 percent of the taxes applicable to the new base year value reflecting the change in ownership of the real property or manufactured home, whichever is greater, but not to exceed two thousand five hundred dollars ($2,500) if the failure to file was not willful, shall, except as otherwise provided in this section, be added to the assessment made on the roll. The penalty shall apply for failure to file a complete change in ownership statement notwithstanding the fact that the assessor determines that no change in ownership has occurred as defined in Chapter 2 (commencing with Section 60) of Part 0.5. The penalty may also be applied if after a request the transferee files an incomplete statement and does not supply the missing information upon a second request.

(b) If a person or legal entity required to file a statement described in Section 480.1 or 480.2 fails to do so within 45 days from the earlier of (1) the date of the change in control or the change in ownership of the corporation, partnership, limited liability company, or other legal entity, or (2) the date of a written request by the State Board of Equalization, a penalty of 10 percent of the taxes applicable to the new base year value reflecting the change in control or change in ownership of the real property owned by the corporation, partnership, or legal entity, or 10 percent of the current year's taxes on that property if no change in control or change in ownership occurred, shall be added to the assessment made on the roll. The penalty shall apply for failure to file a complete statement notwithstanding the fact that the board determines that no change in control or change in ownership has occurred as defined in subdivision (c) or (d) of Section 64. The penalty may also be applied if after a request the person or legal entity files an incomplete statement and does not supply the missing information upon a second request. That penalty shall be in lieu of the penalty provisions of subdivision (a).

(c) The penalty for failure to file a timely statement pursuant to Sections 480, 480.1, and 480.2 for any one transfer may be imposed only one time, even though the assessor may initiate a request as often as he or she deems necessary.

(d) The penalty shall be added to the roll in the same manner as a special assessment and treated, collected, and subject to the same penalties for the delinquency as all other taxes on the roll in which it is entered.

(1) When the transfer to be reported under this section is of a portion of a property or parcel appearing on the roll during the fiscal year in which the 45-day period expires, the current year's taxes shall be prorated so the penalty will be computed on the proportion of property which has transferred.

(2) Any penalty added to the roll pursuant to this section between January 1 and June 30 may be entered either on the unsecured roll or the roll being prepared. After January 1, the penalty may be added to the current roll only with the approval of the tax collector.

(3) If the property is transferred or conveyed to a bona fide purchaser for value or becomes subject to a lien of a bona fide encumbrancer for value after the transfer of ownership resulting in the imposition of the penalty and before the enrollment of the penalty, the penalty shall be entered on the unsecured roll in the name of the transferee whose failure to file the change in ownership statement resulted in the imposition of the penalty.

(e) When a penalty imposed pursuant to this section is entered on the unsecured roll, the tax collector may immediately file a certificate authorized by Section 2191.3.

(f) Notice of any penalty added to either the secured or unsecured roll pursuant to this section shall be mailed by the assessor to the transferee at his or her address contained in any recorded instrument or document evidencing a transfer of an interest in real property or manufactured home or at any address reasonably known to the assessor.

History.—Stats. 1979, Ch. 1161, in effect September 29, 1979, substituted the balance of the second sentence of the first paragraph after "added" for "to the current assessment roll and shall become a lien against the real property in the same manner as any other property tax, unless paid by the end of the month following the month in which it is enrolled. Thereafter, the lien shall be subject to interest and penalties as any other delinquent tax on real property". Stats. 1979, Ch. 1180, in effect January 1, 1980, added "or mobilehome" after "property" in the first sentence, and deleted "to the roll" after "added", and substituted "this chapter" for "Chapter 3 of Part 2 of Division 1 of the Revenue and Taxation Code" in the second sentence of the first paragraph. Stats. 1980, Ch. 1081, in effect September 26, 1980, added "(a)" and a new first sentence to the first paragraph; added "or, for property which is state assessed, by the board" after "mobilehome", "a written" before "request", "but not to exceed two thousand five hundred dollars ($2,500) if such failure was not willful" before and "except as otherwise provided in this section" after "shall" and "secured" after "current" in the second sentence of subdivision (a); substituted a new third sentence to subdivision (a); added subdivisions (b) through (e); added "(f)" before the last paragraph; and, substituted "either the secured or unsecured" for "the" before "roll" and "transferee" for "assessee" before "at his" and "transfer of an interest in real property or mobilehome" for "change in ownership" after "evidencing a" in subdivision (f). Stats. 1981, Ch. 1141, in effect October 2, 1981, operative January 1, 1982, substituted subdivisions (a) and (b) for former subdivisions (a) and (b); and added "for failure . . . 480.2" after "penalty", substituted "may" for "can" after "transfer", and added "or she" after "he" in subdivision (c). Stats. 1983, Ch. 1224, in effect January 1, 1984, deleted "of Division 1" after "Part 0.5" in the second sentence of subdivision (a); added "State" before "Board" in the first sentence of subdivision (b); substituted "treated, collected, and" for "shall be treated and collected like, and shall be" before "subject" in subdivision (d), deleted the former second sentence in subsection (1) thereof, deleted "of any fiscal year" after "June 30" and substituted "the roll being prepared" for "on the current or subsequent year's secured roll as a lien against the property transferred" after "roll or" in the first sentence and added the second sentence of subsection (2) thereof, and substituted "the" for "such" after the second "penalty" in subsection (3) thereof; and added "or her" after "his" in subdivision (f). Stats. 1984, Ch. 678, in effect January 1, 1985, added the fifth sentence to subdivision (b). Stats. 1995, Ch. 499, in effect January 1, 1996, operative January 1, 1997, substituted "January" for "March" after "section between" in the first sentence and after "After" in the second sentence of subdivision (d)(2). Stats. 2002, Ch. 775 (SB 2092), in effect January 1, 2003, substituted "manufactured home" for "mobilehome" throughout the text. Stats. 2009, Ch. 622 (SB 816), in effect January 1, 2010, added "the earlier of (1) the date of the change in control or the change in ownership of the corporation, partnership, limited liability company, or other legal entity, or (2)" after "45 days from" in the first sentence, and deleted the former fifth sentence of subdivision (b), which read: "However, the penalty added by this subdivision shall be automatically extinguished if the person or legal entity files a complete statement described in Section 480.1 or 480.2 no later than 60 days after the date on which the person or legal entity is notified of the penalty."

Note.—Section 22 of Stats. 1979, Ch. 1161, provided no payment by state to local governments because of this act. Section 18 of Stats. 1979, Ch. 1180, provided no payment by state to local governments because of this Act.

* Article 2.5 was added by Stats. 1979, Ch. 242, in effect July 10, 1979.

Note.—Section 44 of Stats. 1979, Ch. 242, provided no payment by state to local governments because of this act.