Laws, Regulations & Annotations
Property Taxes Law Guide – Revision 2011
Property Tax Rules
Title 18, Public Revenues California Code of Regulations
DIVISION 1. STATE BOARD OF EQUALIZATION
CHAPTER 1. STATE BOARD OF EQUALIZATION—PROPERTY TAX
Subchapter 4. Equalization by State Board (370–500)
Article 4. Change in Ownership and New Construction (460–500)
Authority: Section 15606, Government Code.
Reference: Sections 60, 61, 62, 63, 67, Revenue and Taxation Code.
For purposes of reappraising real property as of the date of change in ownership of real property, the following dates shall be used:
(1) Where the transfer is evidenced by recordation of a deed or other document, the date of recordation shall be rebuttably presumed to be the date of ownership change. This presumption may be rebutted by evidence proving a different date to be the date all parties' instructions have been met in escrow or the date the agreement of the parties became specifically enforceable.
(2) Where the transfer is accomplished by an unrecorded document, the date of the transfer document shall be rebuttably presumed to be the date of ownership change. This presumption may be rebutted by evidence proving a different date to be the date all parties' instructions have been met in escrow or the date the agreement of the parties became specifically enforceable.
(b) LEASES. The date the lessee has the right to possession.
(c) INHERITANCE (by will or intestate succession). The date of death of the decedent.
(1) Revocable. The date the trust becomes irrevocable.
Example 1: A creates an inter vivos revocable trust that becomes irrevocable upon A's death. The date of change in ownership is the date of A's death.
(A) The date the property is placed in trust.
Example 2: A transfers to an irrevocable testamentary trust. The date of change in ownership is the date of A's death.
Example 3: A transfers to an irrevocable inter vivos trust. The date of change in ownership is the date of the transfer.
(B) The effective date of the immediate right to present possession or enjoyment of a remainder or reversion occurs upon the termination of a life estate or other precedent property interest.
Example 4: A creates an irrevocable trust, granting A's wife, B, a life estate in the beneficial use of the property with a remainder to C and D who are unrelated to A and B. The creation of a life estate in B is a transfer subject to the interspousal exclusion from change in ownership. Upon B's death, however, a change in ownership occurs because on that date C and D have an immediate right to the present possession and enjoyment of the remainder.
NOTE: Refer to Rule 462.160 for trust transfer exceptions.
History: Adopted June 29, 1978, effective July 3, 1978.
Amended September 26, 1978, effective October 2, 1978.
Repealed Old Rule and Adopted New Rule August 16, 1979, effective August 22, 1979.
Amended November 13, 1979, effective December 6, 1979.
Amended May 5, 1981, effective August 12, 1981.
Amended March 31, 1982, effective June 10, 1982.
Amended May 11, 1994, effective June 10, 1994. Renumbered, formerly 462(n).
Amended March 19, 1997, effective June 11, 1997.