2005 California Revenue and Taxation Code Sections 480-487 Article 2.5. Change in Ownership Reporting

REVENUE AND TAXATION CODE
SECTION 480-487

480.  (a) Whenever there occurs any change in ownership of real
property or of a manufactured home that is subject to local property
taxation and is assessed by the county assessor, the transferee shall
file a signed change in ownership statement in the county where the
real property or manufactured home is located, as provided for in
subdivision (c).  In the case of a change in ownership where the
transferee is not locally assessed, no change in ownership statement
is required.
   (b) The personal representative shall file a change in ownership
statement with the county recorder or assessor in each county in
which the decedent owned real property at the time of death that is
subject to probate proceedings.  The statement shall be filed prior
to or at the time the inventory and appraisal is filed with the court
clerk.  In all other cases in which an interest in real property is
transferred by reason of death, including a transfer through the
medium of a trust, the change in ownership statement or statements
shall be filed by the trustee (if the property was held in trust) or
the transferee with the county recorder or assessor in each county in
which the decedent owned an interest in real property within 150
days after the date of death.
   (c) Except as provided in subdivision (d), the change in ownership
statement as required pursuant to subdivision (a) shall be declared
to be true under penalty of perjury and shall give that information
relative to the real property or manufactured home 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, the parties to
the transaction, the date of acquisition, the amount, if any, of the
consideration paid for the property, whether paid in money or
otherwise, and the terms of the transaction.  The change in ownership
statement shall not include any question that is not germane to the
assessment function.  The statement shall contain a notice informing
the transferee of the property tax relief available under Section
69.5.  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 transferee acquiring an interest in real
property or manufactured home subject to local property taxation, and
that is assessed by the county assessor, to file a change in
ownership statement with the county recorder or assessor.  The change
in ownership statement must be filed at the time of recording or, if
the transfer is not recorded, within 45 days of the date of the
change in ownership, except that where the change in ownership has
occurred by reason of death the statement shall be filed within 150
days after the date of death or, if the estate is probated, shall be
filed at the time the inventory and appraisal is filed.  The failure
to file a change in ownership statement within 45 days from the date
of a written request by the assessor results in a penalty of either:
(1) one hundred dollars ($100), or (2) 10 percent of the taxes
applicable to the new base year value reflecting the change in
ownership of the real property or manufactured home, whichever  is
greater, but not to exceed two thousand five hundred dollars ($2,500)
if that failure to file was not willful.  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."
   (d) The change in ownership statement may be attached to or
accompany the deed or other document evidencing a change in ownership
filed for recording, in which case the notice, declaration under
penalty of perjury, and any information contained in the deed or
other transfer document otherwise required by subdivision (c) may be
omitted.
   (e) If the document evidencing a change in ownership is recorded
in the county recorder's office, then the statement shall be filed
with the recorder at the time of recordation.  However, the
recordation of the deed or other document evidencing a change in
ownership shall not be denied or delayed because of the failure to
file a change of ownership statement, or filing of an incomplete
statement, in accordance with this subdivision.  If the document
evidencing a change in ownership is not recorded or is recorded
without the concurrent filing of a change in ownership statement,
then the statement shall be filed with the assessor no later than 45
days from the date the change in ownership occurs, except that where
the change in ownership has occurred by reason of death the statement
shall be filed within 150 days after the date of death or, if the
estate is probated, shall be filed at the time the inventory and
appraisal is filed.
   (f) Whenever a change in ownership statement is filed with the
county recorder's office, the recorder shall transmit, as soon as
possible, the original statement or a true copy thereof to the
assessor along with a copy of every recorded document as required by
Section 255.7.
   (g) The change in ownership statement may be filed with the
assessor through the United States mail, properly addressed with the
postage prepaid.
   (h) 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 those 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.
   (i) 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 the assistance be rendered by any person or entity
acting for or on behalf of parties to a transfer of real property.
480.1.  (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
such corporation, partnership, limited liability company, or other
legal entity with the board at its office in Sacramento.  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 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
45 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 45 days from 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 such person or entity as a result of such
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 such documents available to the board during normal
business hours.
480.2.  (a) Whenever there is a change in ownership of any
corporation, partnership, limited liability company, or other legal
entity, as defined in subdivision (d) of Section 64, a signed change
in ownership statement as provided in subdivision (b) shall be filed
by such corporation, partnership, limited liability company, or other
legal entity with the board at its office in Sacramento.  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 required pursuant to
subdivision (a) shall be declared to be true and under penalty of
perjury and shall give such information relative to the ownership
interest 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, the
date of the ownership interest acquisition, and a listing of the
"original coowners" of the corporation, partnership, limited
liability company, or other legal entity prior to the transaction.
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 corporation, partnership, limited liability
company, or other legal entity owning  real property in California
subject to local property taxation and transferring shares or other
ownership interest in such legal entity which constitute a change in
ownership pursuant to subdivision (d) of Section 64 of the Revenue
and Taxation Code 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
45 days from the date that shares or other ownership interests
representing cumulatively more than 50 percent of the total control
or ownership interests in the entity are transferred by any of the
original coowners in one or more transactions.  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 ownership of the
legal entity has occurred.  The failure to file a change in ownership
statement within 45 days from the date of a written request by the
Board of Equalization results in a penalty of 10 percent of the taxes
applicable to the new base year value reflecting the change in
ownership 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 real property if no change in ownership
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 such person or entity as a result of such
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 ownership as defined
in subdivision (d) of Section 64 has occurred.  The corporation,
partnership, limited liability company, or legal entity shall upon
request, make such documents available to the board during normal
business hours.
480.3.  (a) Each county assessor and recorder shall make available,
without charge and upon request, a form entitled "Preliminary Change
of Ownership Report," which transferees of real property shall
complete and may file with the recorder concurrent with the
recordation of any document effecting a change in ownership.  The
form shall be signed by the transferee or an officer of the
transferee and shall not be signed by an agent acting for a
transferee.
   (b) If a document evidencing a change in ownership is presented to
the recorder for recordation without the concurrent filing of a
preliminary change in ownership report, the recorder may charge an
additional recording fee of twenty dollars ($20).
   (c) Noncompliance with this section by the transferee shall not
delay or preclude the recordation of documents if the additional fee
specified in subdivision (b) is tendered.
   (d) The authority to obtain information pursuant to this section
is in addition to, and not in lieu of, any existing authority the
assessor has under this article.
   (e) In cases where the county tax collector files purchaser's
deeds with respect to a sale for defaulted taxes, the information
given to the assessor pursuant to Sections 3716 and 3811 shall be
deemed to constitute compliance with this section.
   (f) The filing of a preliminary change of ownership report or the
payment of an additional recording fee shall not be required of any
intermediate transferee of property, or of any trustee issuing a
trustee's deed to the mortgagee or beneficiary of a mortgage or deed
of trust, or his or her assignees, pursuant to the exercise of a
power of sale contained in a deed of trust or mortgage pursuant to
Chapter 2 (commencing with Section 2920) of Title 14 of Part 4 of
Division 3 of the Civil Code.  For purposes of this subdivision,
"intermediate transferee" means any transferee who is acting as both
a transferee and the transferor of the same property as part of a
series of simultaneous transfers which affect that property and who
records the transfer documents and any other recorded documents
related to the transfer in consecutive order at one time.
   (g) Except as prescribed in subdivisions (e) and (f), this section
shall apply to changes of ownership occurring on or after July 1,
1985.
480.4.  (a) The preliminary change of ownership report referred to
in Section 480.3 shall be in substantially the following form:
   (b) The State Board of Equalization may revise the preliminary
change of ownership report, as necessary, for the purpose of
maintaining statewide uniformity in the contents of the report.
   (c) This section shall become operative on July 1, 1991.
480.5.  (a) Every owner of tax-exempt real property shall report to
the local assessor the creation, renewal, sublease, or assignment of
any lease, sublease, license, use permit, or other document which
conveys the right to use that real property within 60 days of the
transaction.  The report shall include all of the following:
   (1) The name and address of the owner.
   (2) The names and addresses of all other parties to the
transaction, including an identification of each party and of his or
her possessory interest.
   (3) The type of transaction, whether creation, renewal, sublease,
or assignment.
   (4) A description of the property.
   (5) The date of the transaction.
   (6) The terms of the transaction, including all of the following:
   (A) The consideration for the possessory interest, whether paid in
money or otherwise.
   (B) The term of the possessory interest, including any renewal or
extension options.
   (C) If a sublease, the original term, the remaining term, and the
consideration paid for the master lease.
   (D) If an assignment, the original term, the remaining term, and
the consideration paid for the underlying lease.
   (b) This section shall be applicable only in those counties in
which the board of supervisors, by ordinance or resolution,
specifically elects to have this section applicable in the county.
480.6.  (a) Notwithstanding any other provision of law, a holder of
a possessory interest in real property that is owned by a state or
local governmental entity is not required to file a preliminary
change in ownership report or change in ownership statement with
respect to any renewal of that possessory interest.  Instead, every
state or local governmental entity that is the fee owner of real
property in which one or more taxable possessory interests have been
created shall either file any preliminary change in ownership report
or change in ownership statement otherwise required to be filed with
respect to any renewal of a possessory interest, or annually file
with the county assessor, no later than the 15th day of the first
month following the month in which the lien date occurs, a real
property usage report.  The report shall include all of the following
information:
   (1) The name and address of the fee owner of the real property.
   (2) The name and address of each holder of a possessory interest
in the real property.
   (3) The types of transactions in which the holders of the
possessory interests acquired those interests, whether creations,
renewals, subleases, or assignments.
   (4) The description of the subject real property.
   (5) The date of each transaction in which a holder of a possessory
interest in the real property acquired that interest.
   (6) The terms of each transaction described in paragraph (5),
including all the following:
   (A) The consideration given for the possessory interest, whether
paid in money or otherwise.
   (B) The terms of the possessory interest, including any renewal or
extension option.
   (C) For any subleases, the original term and remaining term of the
sublease, and the consideration paid for the master lease.
   (D) For any assignments, the original term and remaining term of
the assignment, and the consideration paid for the underlying lease.
   (b) The failure of a state or local governmental entity to comply
with this filing requirement shall not give rise to any interest or
penalties assessed against the holder of the possessory interest.
480.7.  (a) On or after January 1, 1996, in addition to any filing
required to be made pursuant to Section 441, 480, 480.1, or 480.2,
any domestic life insurance company that has established a separate
account pursuant to Section 10506 of the Insurance Code, or any
foreign life insurance company that has established a separate
account pursuant to the corresponding insurance laws of its state of
domicile, shall file with the assessor a signed statement of transfer
as described in subdivision (b) with respect to any transfer of real
property, located within the county, to or from that separate
account.
   (b) The statement of transfer required to be filed by subdivision
(a) shall comply with all of the following conditions:
   (1) The statement of transfer shall be subscribed under penalty of
perjury.
   (2) The statement of transfer shall identify all of the following:
   (A) The separate account to which or from which the real property
was transferred.
   (B) The parties to the transfer.
   (C) The date of transfer and the amount, if any, of consideration
given with respect to the transfer, whether paid in the form of money
or otherwise.
   (D) The name and address of a contact person for any questions
with respect to the separate account.
   (E) Any other information with respect to the transfer as
prescribed by the State Board of Equalization, after consultation
with the California Assessor's Association.
   (3) The statement of transfer shall not be required to include any
information that is not relevant to the assessment function.
   (4) The statement of transfer shall be signed by either an officer
of the filing life insurance company, or by an employee or agent of
that insurance company who has been designated in writing by the
company's board of directors to sign the statement of transfer on the
company's behalf.
   (5) The statement of transfer shall be filed with the assessor
either in person or through the United States mail, properly
addressed with the postage prepaid.
   (c) Any life insurance company required by subdivision (a) to file
a statement of transfer that fails to file that statement within 45
days from the date of the subject transfer of real property shall be
subject to a penalty of one thousand dollars ($1,000), in addition to
any other penalty prescribed by law.
481.  All information requested by the assessor or the board
pursuant to this  article or furnished in the change in ownership
statement shall be held secret by the assessor and the board.  All
information furnished in either the preliminary change in ownership
statement or the change in ownership statement shall be held secret
by those authorized by law to receive or have access to this
information.  These statements are not public documents and are not
open to inspection, except as provided in Section 408.
482.  (a) If a person or legal entity required to file a statement
described in Section 480 fails to do so within 45 days from the date
of a written request by the assessor, a penalty of either:  (1) one
hundred dollars ($100), or (2) 10 percent of the taxes applicable to
the new base year value reflecting the change in ownership of the
real property or manufactured home, whichever is greater, but not to
exceed two thousand five hundred dollars ($2,500) if the failure to
file was not willful, shall, except as otherwise provided in this
section, be added to the assessment made on the roll.  The penalty
shall apply for failure to file a complete change in ownership
statement notwithstanding the fact that the assessor determines that
no change in ownership has occurred as defined in Chapter 2
(commencing with Section 60) of Part 0.5.  The penalty may also be
applied if after a request the transferee files an incomplete
statement and does not supply the missing information upon a second
request.
   (b) If a person or legal entity required to file a statement
described in Section 480.1 or 480.2 fails to do so within 45 days
from the date of a written request by the State Board of
Equalization, a penalty of 10 percent of the taxes applicable to the
new base year value reflecting the change in control or change in
ownership of the real property owned by the corporation, partnership,
or legal entity, or 10 percent of the current year's taxes on that
property if no change in control or change in ownership occurred,
shall be added to the assessment made on the roll.  The penalty shall
apply for failure to file a complete statement notwithstanding the
fact that the board determines that no change in control or change in
ownership has occurred as defined in subdivision (c) or (d) of
Section 64.  The penalty may also be applied if after a request the
person or legal entity files an incomplete statement and does not
supply the missing information upon a second request.  That penalty
shall be in lieu of the penalty provisions of subdivision (a).
However, the penalty added by this subdivision shall be automatically
extinguished if the person or legal entity files a complete
statement described in Section 480.1 or 480.2 no later than 60 days
after the date on which the person or legal entity is notified of the
penalty.
   (c) The penalty for failure to file a timely statement pursuant to
Sections 480, 480.1, and 480.2 for any one transfer may be imposed
only one time, even though the assessor may initiate a request as
often as he or she deems necessary.
   (d) The penalty shall be added to the roll in the same manner as a
special assessment and treated, collected, and subject to the same
penalties for the delinquency as all other taxes on the roll in which
it is entered.
   (1) When the transfer to be reported under this section is of a
portion of a property or parcel appearing on the roll during the
fiscal year in which the 45-day period expires, the current year's
taxes shall be prorated so the penalty will be computed on the
proportion of property which has transferred.
   (2) Any penalty added to the roll pursuant to this section between
January 1 and June 30 may be entered either on the unsecured roll or
the roll being prepared.  After January 1, the penalty may be added
to the current roll only with the approval of the tax collector.
   (3) If the property is transferred or conveyed to a bona fide
purchaser for value or becomes subject to a lien of a bona fide
encumbrancer for value after the transfer of ownership resulting in
the imposition of the penalty and before the enrollment of the
penalty, the penalty shall be entered on the unsecured roll in the
name of the transferee whose failure to file the change in ownership
statement resulted in the imposition of the penalty.
   (e) When a penalty imposed pursuant to this section is entered on
the unsecured roll, the tax collector may immediately file a
certificate authorized by Section 2191.3.
   (f) Notice of any penalty added to either the secured or unsecured
roll pursuant to this section shall be mailed by the assessor to the
transferee at his or her address contained in any recorded
instrument or document evidencing a transfer of an interest in real
property or manufactured home or at any address reasonably known to
the assessor.
482.1.  If there is a failure to file a change in ownership
statement within the time required by subdivision (b) of Section 480,
the successor in interest to the decedent's property shall be
subject to the applicable penalty provided in Section 482.
483.  (a) If the assessee establishes to the satisfaction of the
county board of supervisors that the failure to file the change in
ownership statement within the time required by subdivision (a) of
Section 482 was due to reasonable cause and not due to willful
neglect, and has filed the statement with the assessor, the board of
supervisors may order the penalty abated, provided the assessee has
filed with the board of supervisors written application for abatement
of the penalty no later than 60 days after the date on which the
assessee was notified of the penalty.
   If the penalty is abated it shall be canceled or refunded in the
same manner as an amount of tax erroneously charged or collected.
   (b) The provisions of subdivision (a) shall not apply in any
county in which the board of supervisors adopts a resolution to that
effect.  In that county the penalty provided for in subdivision (a)
of Section 482 shall be abated if the assessee files the change of
ownership statement with the assessor no later than 60 days after the
date on which the assessee was notified of the penalty.
   If the penalty is abated it shall be canceled or refunded in the
same manner as an amount of tax erroneously charged or collected.
   (c) If a person or legal entity establishes to the satisfaction of
the board that the failure to file the change in ownership statement
within the time required by subdivision (b) of Section 482 was due
to reasonable cause and not due to willful neglect, and has filed the
statement with the board, the board may  recommend to the county
board of supervisors that the penalty be abated, provided the person
or legal entity has filed with the  board written application  for
abatement of the penalty no later than 60 days after the date on
which the person or legal entity was notified of the penalty.
   If the penalty is abated by the board of supervisors, it shall be
canceled or refunded in the same manner as an amount of tax
erroneously charged or collected.
484.  With the exception of the penalty provision of Section 463,
the provisions of Article 2 (commencing with Section 441) shall be
available to the assessor for the purposes of securing change in
ownership information required for assessment purposes.
485.  If, after written request by the assessor, any person fails to
comply with any provision of law for furnishing information required
by Section 480, the assessor, based upon information in his
possession, shall estimate the value of the property and, based upon
this estimate, promptly assess the property.
487.  Any life insurance company that completes a real property
transaction for which approval was obtained from the Insurance
Commissioner pursuant to Section 10506 of the Insurance Code shall,
upon completing that transaction, file with the assessor of the
county in which the real property is located a certified copy of the
application that the insurance company filed with the Insurance
Commissioner with respect to the transaction.


Disclaimer: These codes may not be the most recent version. California may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.