Survey Topic — Change in Ownership

Description

Section 60 defines a “change in ownership” as a transfer of a present interest in real property, including the beneficial use thereof, the value of which is substantially equal to the value of the fee interest. For those transfers that are not specifically addressed by statutes, regulations, or court decisions, section 60 provides the fundamental criteria for determining whether a change in ownership has occurred.

Sections 61 through 69.6 and Rules 462.001 through 462.500 further clarify what is considered a change in ownership and what is excluded from the definition of a change in ownership for property tax purposes.

For purposes of valuation of real property due to a change in ownership, section 110(a) defines “full cash value” or “fair market value” as the amount of cash or its equivalent that property would bring if exposed for sale on the open market. Section 110(b) provides that when determining the full cash value to be appraised upon a purchase, the full cash value is the purchase price paid unless it is established by a preponderance of the evidence that the real property would not have transferred for that purchase price on the open market.

Section 110.1(a) defines “full cash value” of real property as the fair market value as determined pursuant to section 110 for either (1) the 1975 lien date, or (2) for property which is purchased or changes ownership after the 1975 lien date, the date on which the purchase or change in ownership occurred. Section 110.1(b) provides that the value determined under section 110.1(a) shall be known as the base year value for the real property.

For purposes of base year values as determined by section 110.1, section 50 provides that values determined for property which is purchased or changes ownership after the 1975 lien date shall be entered on the roll for the lien date next succeeding the date of the purchase or change in ownership.

For detailed information regarding changes in ownership, refer to Assessors' Handbook Section 401, Change in Ownership (AH 401). For further information regarding valuation due to a change in ownership, refer to Assessors' Handbook Section 501, Basic Appraisal (AH 501), and Assessors' Handbook Section 502, Advanced Appraisal (AH 502).