California Legislature—2015–16 Regular Session

Assembly Bill No. 657

Introduced by Assembly Member Achadjian

February 24, 2015

An act to amend Section 480 of the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

AB 657, as introduced, Achadjian. Property taxation: change in ownership reporting.

Existing property tax law requires, when there is a 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, a change in ownership statement to be filed in the county where the real property or manufactured home is located, as provided. Existing law, in the case of probate, requires the personal representative to 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. Existing law requires that statement to be filed before or at the time the inventory and appraisal is filed with the court clerk.

This bill instead, in the case of probate, would require the statement to be filed within 150 days after the date of death.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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 begin delete prior
to or at the time the inventory and appraisal is filed with the court
clerk end delete begin insert within 150 days after the date of death end insert . 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 90 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 begin delete death or, if the estate is
probated, shall be filed at the time the inventory and appraisal is
filed end delete begin insert death end insert . The failure to file a change in ownership statement
within 90 days from the date 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
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 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 90
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 begin delete death
or, if the estate is probated, shall be filed at the time the inventory
and appraisal is filed end delete begin insert death end insert .

(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.