Laws, Regulations & Annotations
Property Taxes Law Guide – Revision 2013
Property Tax Annotations
660.0000 POSSESSORY INTEREST
660.0131 Lease. When taxable real property is purchased by a tax-exempt governmental entity, pre-existing leases become taxable as possessory interests if they satisfy the requirements of Property Tax Rule 21. Any renewal, extension, sublease, or assignment of such a possessory interest is a change in ownership, regardless of the term of possession remaining under the lease; whereas, transfers of leasehold interests in taxable real properties constitute changes in ownership depending on the terms of possession remaining, as provided in Revenue and Taxation Code section 61(c)(1) and (2). LTA 1/6/1983 (No. 83/03); C 8/9/1991.