Laws, Regulations & Annotations
Property Taxes Law Guide – Revision 2014
Property Tax Annotations
200.0000 BASE YEAR VALUE TRANSFER
(a) BASE YEAR VALUE TRANSFER – PRINCIPAL RESIDENCE
200.0095 Purchase. Mr. and Mrs. J sold their large parcel and house to Z Construction Company. Z Construction subdivided this parcel and another parcel into five lots. Mr. and Mrs. J contracted to purchase one of these lots and to have Z Construction construct a house for them on that lot. The transfer of real property from Mr. and Mrs. J to Z Construction was a change in ownership under Revenue and Taxation Code section 60, since Mr. and Mrs. J had no ownership interest in Z Construction and there was no applicable exclusion. Similarly, the transfer of the subdivided lot from Z Construction to Mr. and Mrs. J was a change in ownership.
The fact that the subdivided lot was formerly a part of the large parcel owned by Mr. and Mrs. J did not make Z Construction a "holding company" pursuant to Property Tax Rule 462.200. There was nothing in the two parcel maps, the two settlement statements, and the two contracts pertaining to the transfers that indicates that anything less than the full fee interests transferred. Thus, each of the transfers qualified as a "sale" and a "purchase" for purposes of Revenue and Taxation Code section 69.5, and that exclusion was available if all the other requirements of section 69.5 were met. C 6/5/2001.