Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2013
 

Property Tax Annotations


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C

220.0000 CHANGE IN OWNERSHIP

Annotation 220.0451.010

220.0451.010 Original Co-owner Transfers. Four persons equally owned real property as individuals. In 1990, they transferred the real property to a partnership in a transaction that was excluded from change in ownership under Revenue and Taxation Code section 62(a)(2). As a result of the excluded transaction, those four persons became original co-owners. In 2004, partner A transferred his 25 percent partnership interest to the partnership, resulting in the remaining partners each owning a 33.33 percent interest. In 2006, partner B transferred his 33.33 partnership interest to the two remaining partners.

The transfer of A's 25 percent interest in the partnership was not excluded from change in ownership and therefore should be counted and cumulated for purposes of Revenue and Taxation Code section 64(d). Once an original co-owner interest has been transferred, it ceases to be an original co-owner interest. Thus, only 25 percent of B's 33.33 percent interest were original co-owner interests. As a result, no change in ownership occurred in 2006 because only 50 percent of original co-owner interests had cumulatively been transferred. C 7/21/2009.