Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2013
 

Revenue and Taxation Code

Property Taxation

Part 2. Assessment

Chapter 3. Assessment Generally

Article 2.5. Change in Ownership Reporting*

Section 480.1

480.1. Change in ownership statement; change in control of entity. (a) Whenever there is a change in control of any corporation, partnership, limited liability company, or other legal entity, as defined in subdivision (c) of Section 64, a signed change in ownership statement as provided for in subdivision (b), shall be filed by the person or legal entity acquiring ownership control of the corporation, partnership, limited liability company, or other legal entity with the board at its office in Sacramento within 90 days from the date of the change in control of the corporation, partnership, limited liability company, or other legal entity. The statement shall list all counties in which the corporation, partnership, limited liability company, or legal entity owns real property.

(b) The change in ownership statement as required pursuant to subdivision (a), shall be declared to be true under penalty of perjury and shall give such information relative to the ownership control acquisition transaction as the board shall prescribe after consultation with the California Assessors' Association. The information shall include, but not be limited to, a description of the property owned by the corporation, partnership, limited liability company, or other legal entity, the parties to the transaction, and the date of the ownership control acquisition. The change in ownership statement shall not include any question which is not germane to the assessment function. The statement shall contain a notice that is printed, with the title in at least 12-point boldface type and the body in at least 8-point boldface type, in the following form:

"Important Notice"

"The law requires any person or legal entity acquiring ownership control in any corporation, partnership, limited liability company, or other legal entity owning real property in California subject to local property taxation to complete and file a change in ownership statement with the State Board of Equalization at its office in Sacramento. The change in ownership statement must be filed within 90 days from the date of the change in control of a corporation, partnership, limited liability company, or other legal entity. The law further requires that a change in ownership statement be completed and filed whenever a written request is made therefor by the State Board of Equalization, regardless of whether a change in control of the legal entity has occurred. The failure to file a change in ownership statement within 90 days from the earlier of the date of the change in control of the corporation, partnership, limited liability company, or other legal entity, or the date of a written request by the State Board of Equalization, results in a penalty of 10 percent of the taxes applicable to the new base year value reflecting the change in control of the real property owned by the corporation, partnership, limited liability company, or legal entity (or 10 percent of the current year's taxes on that property if no change in control occurred). This penalty will be added to the assessment roll and shall be collected like any other delinquent property taxes, and be subject to the same penalties for nonpayment."

(c) In the case of a corporation, the change in ownership statement shall be signed either by an officer of the corporation or an employee or agent who has been designated in writing by the board of directors to sign such statements on behalf of the corporation. In the case of a partnership, limited liability company, or other legal entity, the statement shall be signed by an officer, partner, manager, or an employee or agent who has been designated in writing by the partnership, limited liability company, or legal entity.

(d) No person or entity acting for or on behalf of the parties to a transfer of real property shall incur liability for the consequences of assistance rendered to the transferee in preparation of any change in ownership statement, and no action may be brought or maintained against any person or entity as a result of that assistance.

Nothing in this section shall create a duty, either directly or by implication, that such assistance be rendered by any person or entity acting for or on behalf of parties to a transfer of real property.

(e) The board or assessors may inspect any and all records and documents of a corporation, partnership, limited liability company, or legal entity to ascertain whether a change in control as defined in subdivision (c) of Section 64 has occurred. The corporation, partnership, limited liability company, or legal entity shall upon request, make those documents available to the board during normal business hours.

History.—Added by Stats. 1981, Ch. 1141, in effect October 2, 1981, operative January 1, 1982. Stats. 1984, Ch. 678, in effect January 1, 1985, added "complete and" after "taxation to" in the first sentence, added the third sentence, and deleted "either: (1) one hundred dollars ($100), or (2)" after "penalty of" and deleted ", whichever is greater" after "occurred)" in the fourth sentence of the notice in subdivision (b). Stats. 1994, Ch. 1200, in effect September 30, 1994, added all references to limited liability company throughout text, and added "manager," after "partner," in the second sentence of subdivision (c). Stats. 2009, Ch. 622 (SB 816), in effect January 1, 2010, substituted "the" for "such" after "ownership control of" and added "within 45 days from the date of the change in control of the corporation, partnership, limited liability company, or other legal entity" after "in Sacramento" in the first sentence of subdivision (a); added "the earlier of the date of the change in control of the corporation, partnership, limited liability company, or other legal entity, or" after "45 days from" in the fourth sentence of the second paragraph of subdivision (b); deleted "such" after "against any" and substituted "that" for "such" after "result of" in the first sentence of the first paragraph of subdivision (d); and substituted "those" for "such" after "request, make" in the second sentence of subdivision (e). Stats. 2011, Ch. 708 (SB 507), in effect January 1, 2012, substituted "90" for "45" after "Sacramento within" in the first sentence of subdivision (a); added "in" after "the title" in the fourth sentence of the first paragraph and substituted "90" for "45" "filed within" in the first sentence and substituted "90" for "45" after "statement within" and added a comma after "Equalization" in the fourth sentence of the second paragraph of subdivision (b).

* Article 2.5 was added by Stats. 1979, Ch. 242, in effect July 10, 1979.

Note.—Section 44 of Stats. 1979, Ch. 242, provided no payment by state to local governments because of this act.