Laws, Regulations & Annotations
Property Taxes Law Guide – Revision 2017
Property Tax Annotations
220.0000 CHANGE IN OWNERSHIP
220.0600 Rescission. A lease with a term of 35 years or more is treated as a transfer of the beneficial interest in the real property for change in ownership purposes. The rescission of a 35-year lease relates back to its formation and dissolves the lease and the resulting transfer as though it had never been made. For assessment purposes, a rescission has the result of returning the parties to a transaction to their original positions prior to the reappraisal of the property taking effect, so that the property reverts to its previous base year value with appropriate inflation factor adjustments. However, a rescission can only be applied prospectively; no refund of taxes is available to the parties for the period of time during which the transfer is treated as a change in ownership. C 12/11/2003.