BILL NUMBER: SB 507 INTRODUCED
BILL TEXT
INTRODUCED BY Senator DeSaulnier
FEBRUARY 17, 2011
An act to amend Sections 480 and 482 of the Revenue and Taxation
Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 507, as introduced, DeSaulnier. Property taxation: change in
ownership statement.
Existing property tax law requires a transferee of real property
or a manufactured home that is locally assessed to file a change in
ownership statement with the county in which the property or
manufactured home is located, and authorizes the change in ownership
statement to be filed with the assessor through the United States
mail. If a county assessor makes a written request to a transferee to
file a change in ownership statement and the transferee fails to do
so within 45 days of that request, existing law imposes a penalty on
the transferee equal to the greater of either $100 or 10% of the
property taxes due on the property, but not to exceed $2,500 if the
failure was not willful.
This bill would require a change in ownership statement that is
filed with the assessor through the United States mail to be deemed
filed with the assessor on either the date of postmark affixed by the
United States Postal service, or on the date certified by a bona
fide private courier service, on the envelope containing the
statement. This bill would remove the $2,500 cap on the penalty for
nonwillful failures to file a change in ownership statement and would
instead provide a $5,000 cap on the penalty for failure to file a
change in ownership statement on property that is eligible for the
homeowners' property tax exemption or a $20,000 cap if the property
is not eligible for the homeowners' exemption. This bill would
extend, from 45 days to 90 days, the time period for filing a change
in ownership statement if requested to do so by the assessor. This
bill would also specify to which addresses the assessor may mail this
request or a notice of a penalty. This bill would also make
conforming changes to a related provision.
Existing law requires a corporation, partnership, limited
liability company, or other legal entity to file a change in
ownership statement within 45 days from the date of the change in
control or the change in ownership, or within 45 days from the date
of a written request by the State Board of Equalization. Existing law
requires a penalty to be imposed if the person or legal entity
required to file a change in ownership statement fails to do so
within 45 days from the date of a written request by the State Board
of Equalization.
This bill would require this penalty to be automatically
extinguished if the person or legal entity files a complete change in
ownership statement no later than 90 days after the date on which
the person or legal entity is notified of the penalty.
By changing the manner in which county officials process property
tax penalties, this bill would impose a state-mandate local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 480 of the Revenue and Taxation Code is amended
to read:
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
90 days from the date of a written
request is mailed 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) five thousand dollars ($5,000) if the
property is eligible for the homeowners' exemption or twenty thousand
do llars ($20,000) if the property is not eligible for
the homeowners' exemption if that failure to file was not
willful. The assessor is required to mail the request to file a
change in ownership statement to the transferee at the address
specified for mailing tax information on either the recorded
instrument, the document evidencing a transfer of an interest in real
property or manufactured home, or on the filed preliminary change in
ownership report, or, if an address is not specified for mailing tax
information, to any address reasonably known to the assessor
. 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) (1) The change in ownership statement may
be filed with the assessor through the United States mail, properly
addressed with the postage prepaid.
(2) A change in ownership statement that is filed with the
assessor, as authorized by paragraph (1), shall be deemed filed on
either the date of the postmark affixed by the United States Postal
Service containing the statement or on the date certified by a bona
fide private courier service on the envelope containing the
statement.
(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.
SEC. 2. Section 482 of the Revenue and Taxation Code is amended to
read:
482. (a) (1) If a person or legal entity
required to file a statement described in Section 480 fails to do so
within 45 90 days from the date
of a written request is mailed by the
assessor, a penalty of either: (1) (A)
one hundred dollars ($100), or (2) (B)
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) five
thousand dollars ($5,000) if the property is eligible for the
homeowners' exemption or twenty thousand dollars ($20,000) if the
property is not eligible for the homeowners' exemption 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.
(2) The assessor shall mail the written request specified in
paragraph (1) to the mailing address of the transferee as provided by
subdivision (f).
(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 earlier of (1) the date of the change in control or the
change in ownership of the corporation, partnership, limited
liability company, or other legal entity, or (2) 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 90 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 or 90-day period , as
applicable, 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 , and the written request to file
a statement specified in subdivision (a), 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 the address specified
for mailing tax information contained in the preliminary change in
ownership report. If the transferee has subsequently notified the
assessor of a change in address for mailing tax
information, the assessor shall mail the notice of any penalty, or
the written request to file a statement specified in subdivision (a),
to this address. If there is no address specified for mailing tax
information on either the recorded instrument, the document
evidencing a transfer of an interest in real property or manufactured
home, or on the filed preliminary change in ownership report, and
the transferee has not provided an address for purposes of mailing
tax information, the assessor shall mail the notice of any penalty,
or the written request to file a statement specified in subdivision
(a), to the transferee at any address reasonably known to the
assessor .
SEC. 3. If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.