Laws, Regulations & Annotations
Property Taxes Law Guide – Revision 2013
Property Tax Annotations
220.0000 CHANGE IN OWNERSHIP
220.0454 Original Co-owners. Where a legal entity transfers to a withdrawing owner that portion of real property representing the withdrawing owner's proportionate share of entity ownership, in redemption of its ownership interest, the withdrawing owner becomes a tenant in common with the legal entity. The transfer to the withdrawing owner is excluded from change in ownership under Revenue and Taxation Code section 62(a)(2) and Property Tax Rule 462.180(b)(2). As a result of the withdrawal, each remaining owner's interest in the legal entity would accordingly increase, but such increases would be excluded from change in ownership under Rule 462.180(d)(4). The remaining legal entity owners become original co-owners. If a remaining owner of the legal entity obtains a majority ownership interest as a result of the withdrawal, the obtaining of control would not result in a change in ownership of the portion of real property still owned by the legal entity, because the section 62(a)(2) exclusion takes precedence over the change in control provision of section 64(c)(1). C 1/13/2009.