Change in Ownership Recommendation Examples

The published assessment practices survey report may include recommendations for improvement to the Assessor's procedures and practices. Below are examples of recommendations for the Change in Ownership survey topic.

Apply penalties for failure to file or file timely BOE-502-AH, Change of Ownership Statement (COS), as provided in section 482(a).

Section 482(a)(1) provides that if a person or legal entity required to file a statement described in section 480 fails to do so within 90 days from the date of a written request by the Assessor, a penalty of either: (A) one hundred dollars ($100), or (B) 10 percent of the taxes applicable to the new base year value reflecting the change in ownership of the real property, manufactured home, or floating 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 the failure to file was not willful, shall be added to the assessment made on the roll.

The information contained in a properly completed COS assists the Assessor in making an accurate assessment of a property. By not applying penalties when a property owner fails to file, or fails to file timely a requested COS, the Assessor is not in compliance with statute.

Reassess all properties owned by a legal entity undergoing a change in control or ownership.

Section 64(c)(1) provides that when a legal entity or any other person obtains control through direct or indirect ownership or control of more than 50 percent of the voting stock of any corporation, or obtains a majority ownership interest in any partnership, limited liability company, or other legal entity through the purchase or transfer of corporate stock, partnership, or limited liability company interest, the purchase or transfer of that stock or interest shall be a change in ownership of the real property owned by the legal entity in which the controlling interest was obtained.

By not reassessing properties owned by legal entities identified as having undergone a change in control or ownership, the Assessor may be enrolling incorrect assessments for those properties.