60. A "change in ownership" means 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.
61. Except as otherwise provided in Section 62, change in
ownership, as defined in Section 60, includes, but is not limited to:
(a) The creation, renewal, sublease, assignment, or other transfer
of the right to produce or extract oil, gas, or other minerals
regardless of the period during which the right may be exercised. The
balance of the property, other than the mineral rights, shall not be
reappraised pursuant to this section.
(b) The creation, renewal, extension, or assignment of a taxable
possessory interest in tax exempt real property for any term. For
purposes of this subdivision:
(1) "Renewal" and "extension" do not include the granting of an
option to renew or extend an existing agreement pursuant to which the
term of possession of the existing agreement would, upon exercise of
the option, be lengthened, whether the option is granted in the
original agreement or subsequent thereto.
(2) Any "renewal" or "extension" of a possessory interest during
the reasonably anticipated term of possession used by the assessor to
value that interest does not cause a change in ownership until the
end of the reasonably anticipated term of possession used by the
assessor to value that interest. At the end of the reasonably
anticipated term of possession used by the assessor, a new base year
value, based on a new reasonably anticipated term of possession,
shall be established for the possessory interest.
(3) "Assignment" of a possessory interest means the transfer of
all rights held by a transferor in a possessory interest.
(c) (1) (A) The creation of a leasehold interest in taxable real
property for a term of 35 years or more (including renewal options).
(B) The termination of a leasehold interest in taxable real
property which had an original term of 35 years or more (including
renewal options).
(C) Any transfer of a leasehold interest having a remaining term
of 35 years or more (including renewal options).
(D) Any transfer of a lessor's interest in taxable real property
subject to a lease with a remaining term (including renewal options)
of less than 35 years.
(2) Only that portion of a property subject to that lease or
transfer shall be considered to have undergone a change in ownership.
(3) For the purpose of this subdivision, for 1979-80 and each year
thereafter, it shall be conclusively presumed that all homes
eligible for the homeowners' exemption, other than manufactured homes
located on rented or leased land and subject to taxation pursuant to
Part 13 (commencing with Section 5800) and floating homes subject to
taxation pursuant to Section 229, that are on leased land have a
renewal option of at least 35 years on the lease of that land,
whether or not in fact that renewal option exists in any contract or
agreement.
(d) (1) (A) A sublease of a taxable possessory interest in
tax-exempt real property for a term, including renewal options, that
exceeds half the length of the remaining term of the leasehold,
including renewal options.
(B) The termination of a sublease of a taxable possessory interest
in tax-exempt property with an original term, including renewal
options, that exceeds half the length of the remaining term of the
leasehold, including renewal options.
(C) Any transfer of a sublessee's interest with a remaining term,
including renewal options, that exceeds half of the remaining term of
the leasehold.
(2) Any transfer of a possessory interest in tax-exempt real
property subject to a sublease with a remaining term, including
renewal options, that does not exceed half the remaining term of the
leasehold, including renewal options.
(e) The creation, transfer, or termination of any joint tenancy
interest, except as provided in subdivision (f) of Section 62, and in
Section 63 and Section 65.
(f) The creation, transfer, or termination of any
tenancy-in-common interest, except as provided in subdivision (a) of
Section 62 and in Section 63.
(g) Any vesting of the right to possession or enjoyment of a
remainder or reversionary interest that occurs upon the termination
of a life estate or other similar precedent property interest, except
as provided in subdivision (d) of Section 62 and in Section 63.
(h) Any interests in real property that vest in persons other than
the trustor (or, pursuant to Section 63, his or her spouse) when a
revocable trust becomes irrevocable.
(i) The transfer of stock of a cooperative housing corporation,
vested with legal title to real property that conveys to the
transferee the exclusive right to occupancy and possession of that
property, or a portion thereof. A "cooperative housing corporation"
is a real estate development in which membership in the corporation,
by stock ownership, is coupled with the exclusive right to possess a
portion of the real property.
(j) The transfer of any interest in real property between a
corporation, partnership, or other legal entity and a shareholder,
partner, or any other person.
62. Change in ownership shall not include:
(a) (1) Any transfer between coowners that results in a change in
the method of holding title to the real property transferred without
changing the proportional interests of the coowners in that real
property, such as a partition of a tenancy in common.
(2) Any transfer between an individual or individuals and a legal
entity or between legal entities, such as a cotenancy to a
partnership, a partnership to a corporation, or a trust to a
cotenancy, that results solely in a change in the method of holding
title to the real property and in which proportional ownership
interests of the transferors and transferees, whether represented by
stock, partnership interest, or otherwise, in each and every piece of
real property transferred, remain the same after the transfer. The
provisions of this paragraph shall not apply to transfers also
excluded from change in ownership under the provisions of subdivision
(b) of Section 64.
(b) Any transfer for the purpose of perfecting title to the
property.
(c) (1) The creation, assignment, termination, or reconveyance of
a security interest; or (2) the substitution of a trustee under a
security instrument.
(d) Any transfer by the trustor, or by the trustor's spouse or
registered domestic partner, or by both, into a trust for so long as
(1) the transferor is the present beneficiary of the trust, or (2)
the trust is revocable; or any transfer by a trustee of such a trust
described in either clause (1) or (2) back to the trustor; or, any
creation or termination of a trust in which the trustor retains the
reversion and in which the interest of others does not exceed 12
years duration.
(e) Any transfer by an instrument whose terms reserve to the
transferor an estate for years or an estate for life. However, the
termination of such an estate for years or estate for life shall
constitute a change in ownership, except as provided in subdivision
(d) and in Section 63.
(f) The creation or transfer of a joint tenancy interest if the
transferor, after the creation or transfer, is one of the joint
tenants as provided in subdivision (b) of Section 65.
(g) Any transfer of a lessor's interest in taxable real property
subject to a lease with a remaining term (including renewal options)
of 35 years or more. For the purpose of this subdivision, for 1979-80
and each year thereafter, it shall be conclusively presumed that all
homes eligible for the homeowners' exemption, other than
manufactured homes located on rented or leased land and subject to
taxation pursuant to Part 13 (commencing with Section 5800) and
floating homes subject to taxation pursuant to Section 229, that are
on leased land have a renewal option of at least 35 years on the
lease of that land, whether or not in fact that renewal option exists
in any contract or agreement.
(h) Any purchase, redemption, or other transfer of the shares or
units of participation of a group trust, pooled fund, common trust
fund, or other collective investment fund established by a financial
institution.
(i) Any transfer of stock or membership certificate in a housing
cooperative that was financed under one mortgage, provided that
mortgage was insured under Section 213, 221(d)(3), 221(d)(4), or 236
of the National Housing Act, as amended, or that housing cooperative
was financed or assisted pursuant to Section 514, 515, or 516 of the
Housing Act of 1949 or Section 202 of the Housing Act of 1959, or the
housing cooperative was financed by a direct loan from the
California Housing Finance Agency, and provided that the regulatory
and occupancy agreements were approved by the governmental lender or
insurer, and provided that the transfer is to the housing cooperative
or to a person or family qualifying for purchase by reason of
limited income. Any subsequent transfer from the housing cooperative
to a person or family not eligible for state or federal assistance in
reduction of monthly carrying charges or interest reduction
assistance by reason of the income level of that person or family
shall constitute a change of ownership.
(j) Any transfer during the period March 1, 1975, to March 1,
1981, between coowners in any property that was held by them as
coowners for all or part of that period, and which was eligible for a
homeowner's exemption during the period of the coownership,
notwithstanding any other provision of this chapter. Any transferee
whose interest was revalued in contravention of the provisions of
this subdivision shall obtain a reversal of that revaluation with
respect to the 1980-81 assessment year and thereafter, upon
application to the county assessor of the county in which the
property is located filed on or before March 26, 1982. No refunds
shall be made under this subdivision for any assessment year prior to
the 1980-81 fiscal year.
(k) Any transfer of property or an interest therein between a
corporation sole, a religious corporation, a public benefit
corporation, and a holding corporation as defined in Section 23701h
holding title for the benefit of any of these corporations, or any
combination thereof (including any transfer from one entity to the
same type of entity), provided that both the transferee and
transferor are regulated by laws, rules, regulations, or canons of
the same religious denomination.
(l) Any transfer, that would otherwise be a transfer subject to
reappraisal under this chapter, between or among the same parties for
the purpose of correcting or reforming a deed to express the true
intentions of the parties, provided that the original relationship
between the grantor and grantee is not changed.
(m) Any intrafamily transfer of an eligible dwelling unit from a
parent or parents or legal guardian or guardians to a minor child or
children or between or among minor siblings as a result of a court
order or judicial decree due to the death of the parent or parents.
As used in this subdivision, "eligible dwelling unit" means the
dwelling unit that was the principal place of residence of the minor
child or children prior to the transfer and remains the principal
place of residence of the minor child or children after the transfer.
(n) Any transfer of an eligible dwelling unit, whether by will,
devise, or inheritance, from a parent or parents to a child or
children, or from a guardian or guardians to a ward or wards, if the
child, children, ward, or wards have been disabled, as provided in
subdivision (e) of Section 12304 of the Welfare and Institutions
Code, for at least five years preceding the transfer and if the
child, children, ward, or wards have adjusted gross income that, when
combined with the adjusted gross income of a spouse or spouses,
parent or parents, and child or children, does not exceed twenty
thousand dollars ($20,000) in the year in which the transfer occurs.
As used in this subdivision, "child" or "ward" includes a minor or an
adult. As used in this subdivision, "eligible dwelling unit" means
the dwelling unit that was the principal place of residence of the
child or children, or ward or wards for at least five years preceding
the transfer and remains the principal place of residence of the
child or children, or ward or wards after the transfer. Any
transferee whose property was reassessed in contravention of the
provisions of this subdivision for the 1984-85 assessment year shall
obtain a reversal of that reassessment upon application to the county
assessor of the county in which the property is located. Application
by the transferee shall be made to the assessor no later than 30
days after the later of either the transferee's receipt of notice of
reassessment pursuant to Section 75.31 or the end of the 1984-85
fiscal year.
(o) Any transfer of a possessory interest in tax-exempt real
property subject to a sublease with a remaining term, including
renewal options, that exceeds half the length of the remaining term
of the leasehold, including renewal options.
(p) (1) Commencing on January 1, 2000, any transfer between
registered domestic partners, as defined in Section 297 of the Family
Code, including, but not limited to:
(A) Transfers to a trustee for the beneficial use of a registered
domestic partner, or the surviving registered domestic partner of a
deceased transferor, or by a trustee of such a trust to the
registered domestic partner of the trustor.
(B) Transfers that take effect upon the death of a registered
domestic partner.
(C) Transfers to a registered domestic partner or former
registered domestic partner in connection with a property settlement
agreement or decree of dissolution of a registered domestic
partnership or legal separation.
(D) The creation, transfer, or termination, solely between
registered domestic partners, of any coowner's interest.
(E) The distribution of a legal entity's property to a registered
domestic partner or former registered domestic partner in exchange
for the interest of the registered domestic partner in the legal
entity in connection with a property settlement agreement or a decree
of dissolution of a registered domestic partnership or legal
separation.
(2) Any transferee whose property was reassessed in contravention
of the provisions of this subdivision for a transfer occurring
between January 1, 2000, and January 1, 2006, shall obtain a reversal
of that reassessment upon application to the county assessor of the
county in which the property is located. Application by the
transferee shall be made to the assessor no later than June 30, 2009.
A county may charge a fee for its costs related to the application
and reassessment reversal in an amount that does not exceed the
actual costs incurred. This paragraph shall be liberally construed to
provide the benefits of this subdivision and Article XIII A of the
California Constitution to registered domestic partners.
(A) After consultation with the California Assessors' Association,
the State Board of Equalization shall prescribe the form for
claiming the reassessment reversal described in paragraph (2). The
claim form shall be entitled "Claim for Reassessment Reversal for
Registered Domestic Partners." The claim shall state on its face that
a "certificate of registered domestic partnership" is available upon
request from the California Secretary of State.
(B) The information on the claim shall include a description of
the property, the parties to the transfer of interest in the
property, the date of the transfer of interest in the property, and a
statement that the transferee registered domestic partner and the
transferor registered domestic partner were, on the date of transfer,
in a registered domestic partnership as defined in Section 297 of
the Family Code.
(C) The claimant shall declare that the information provided on
the form is true, correct, and complete to the best of his or her
knowledge and belief.
(D) The claimant shall provide with the completed claim the
"Certificate of Registered Domestic Partnership," or photocopy
thereof, naming the transferee and transferor as registered domestic
partners and reflecting the creation of the registered domestic
partnership on a date prior to, or concurrent with, the date of the
transfer for which a reassessment reversal is requested.
(E) Any reassessment reversal granted pursuant to a claim shall
apply commencing with the lien date of the assessment year, as
defined in Section 118, in which the claim is filed. No refunds shall
be made under this paragraph for any prior assessment year.
(F) Under any reassessment reversal granted pursuant to that
claim, the adjusted full cash value of the subject real property in
the assessment year described in subparagraph (E) shall be the
adjusted base year value of the subject real property in the
assessment year in which the excluded purchase or transfer took
place, factored to the assessment year described in subparagraph (E)
for both of the following:
(i) Inflation as annually determined in accordance with paragraph
(1) of subdivision (a) of Section 51.
(ii) Any subsequent new construction occurring with respect to the
subject real property.
62.1. (a) Change in ownership shall not include the following:
(1) Any transfer, on or after January 1, 1985, of a mobilehome
park to a nonprofit corporation, stock cooperative corporation,
limited equity stock cooperative, or other entity formed by the
tenants of a mobilehome park, for the purpose of purchasing the
mobilehome park, provided that, with respect to any transfer of a
mobilehome park on or after January 1, 1989, subject to this
paragraph, the individual tenants who were renting at least 51
percent of the spaces in the mobilehome park prior to the transfer
participate in the transaction through the ownership of an aggregate
of at least 51 percent of the voting stock of, or other ownership or
membership interests in, the entity which acquires the park. If, on
or after January 1, 1998, a park is acquired by an entity that did
not attain an initial tenant participation level of at least 51
percent on the date of the transfer, the entity shall have up to one
year after the date of the transfer to attain a tenant participation
level of at least 51 percent. If an individual tenant notifies the
county assessor of the intention to comply with the conditions set
forth in the preceding sentence, the mobilehome park may not be
reappraised by the assessor during that period. However, if a tenant
participation level of at least 51 percent is not attained within the
one-year period, the county assessor shall thereafter levy escape
assessments for the mobilehome park transfer.
(2) Any transfer or transfers on or after January 1, 1985, of
rental spaces in a mobilehome park to the individual tenants of the
rental spaces, provided that (1) at least 51 percent of the rental
spaces are purchased by individual tenants renting their spaces prior
to purchase, and (2) the individual tenants of these spaces form,
within one year after the first purchase of a rental space by an
individual tenant, a resident organization as described in
subdivision (l) of Section 50781 of the Health and Safety Code, to
operate and maintain the park. If, on or after January 1, 1985, an
individual tenant or tenants notify the county assessor of the
intention to comply with the conditions set forth in the preceding
sentence, any mobilehome park rental space that is purchased by an
individual tenant in that mobilehome park during that period shall
not be reappraised by the assessor. However, if all of the conditions
set forth in the first sentence of this paragraph are not satisfied,
the county assessor shall thereafter levy escape assessments for the
spaces so transferred. This paragraph shall apply only to those
rental mobilehome parks that have been in operation for five years or
more.
(b) (1) If the transfer of a mobilehome park has been excluded
from a change in ownership pursuant to paragraph (1) of subdivision
(a) and the park has not been converted to condominium, stock
cooperative ownership, or limited equity cooperative ownership, any
transfer on or after January 1, 1989, of shares of the voting stock
of, or other ownership or membership interests in, the entity that
acquired the park in accordance with paragraph (1) of subdivision (a)
shall be a change in ownership of a pro rata portion of the real
property of the park unless the transfer is for the purpose of
converting the park to condominium, stock cooperative ownership, or
limited equity cooperative ownership or is excluded from change in
ownership by Section 62, 63, or 63.1.
(2) For the purposes of this subdivision, "pro rata portion of the
real property" means the total real property of the mobilehome park
multiplied by a fraction consisting of the number of shares of voting
stock, or other ownership or membership interests, transferred
divided by the total number of outstanding issued or unissued shares
of voting stock of, or other ownership or membership interests in,
the entity that acquired the park in accordance with paragraph (1) of
subdivision (a).
(3) Any pro rata portion or portions of real property that changed
ownership pursuant to this subdivision may be separately assessed as
provided in Section 2188.10.
(4) (A) Notwithstanding any other provision of law, after an
exclusion under subdivision (a), the assessor may not levy any escape
or supplemental assessment with respect to any change in ownership
of a pro rata portion of the real property of the mobilehome park
that occurred between January 1, 1989, and January 1, 2002, and for
which the assessor did not, prior to January 1, 2000, levy any
assessments. However, commencing with the January 1, 2002, lien date,
the assessor shall correct the base year value of the pro rata
portion of the real property of the park to properly reflect these
changes in ownership. A mobilehome park shall provide information
requested by the assessor that is necessary to correct the base year
value of the property for purposes of this paragraph.
(B) When an assessor corrects the base year value of the real
property of the park pursuant to subparagraph (A), the assessor shall
notify parks that residents may be eligible for property tax
assistance programs offered by either the Controller or the Franchise
Tax Board for senior citizens, or blind or disabled persons.
(C) Any outstanding taxes that were levied between January 1,
2000, and January 1, 2002, as a result of a pro rata change in
ownership as described in subparagraph (A) shall be canceled.
However, there shall be no refund of taxes, as so levied, that were
paid prior to January 1, 2002.
(5) A mobilehome park that does not utilize recorded deeds to
transfer ownership interest in the spaces or lots shall file, by
February 1 of each year, a report with the county assessor's office
containing all of the following information:
(A) The full name and mailing address of each owner, stockholder,
or holder of an ownership interest in the mobilehome park.
(B) The situs address, including space number, of each unit.
(C) The date that the ownership interest was acquired.
(D) If the unit is a manufactured home, the Department of Housing
and Community Development decal number or serial number, or both, and
whether the manufactured home is subject to the vehicle license fee
or the local property tax.
(6) Within 30 days of a change in ownership, the new resident
owner or other purchaser or transferee of a manufactured home within
a mobilehome park that does not utilize recorded deeds to transfer
ownership interest in the spaces or lots shall file a change in
ownership statement described in either Section 480 or 480.2.
(7) Failure to comply with the reporting requirement described in
paragraph (5) shall result in a penalty pursuant to Section 482.
(c) It is the intent of the Legislature that, in order to
facilitate affordable conversions of mobilehome parks to tenant
ownership, paragraph (1) of subdivision (a) apply to all bona fide
transfers of rental mobilehome parks to tenant ownership, including,
but not limited to, those parks converted to tenant ownership as a
nonprofit corporation made on or after January 1, 1985.
62.2. (a) (1) Subject to paragraph (2), change in ownership shall
not include any transfer on or after January 1, 1989, of a mobilehome
park to a nonprofit corporation, stock cooperative corporation,
tenant-in-common ownership group, or any other entity, including a
governmental entity, if, within 18 months after the transfer, the
mobilehome park is transferred by that corporation or other entity,
including a governmental entity, to a nonprofit corporation, stock
cooperative corporation, or other entity formed by the tenants of the
mobilehome park in a transaction that is excluded from change in
ownership by paragraph (1) of subdivision (a) of Section 62.1, or at
least 51 percent of the mobilehome park rental spaces are transferred
to the individual tenants of those spaces in a transaction excluded
from change in ownership by paragraph (2) subdivision (a) of Section
62.1.
(2) (A) Any mobilehome park that was initially transferred on or
after January 1, 1993, to a nonprofit corporation, stock cooperative
corporation, tenant-in-common ownership group, or any other entity,
including a governmental entity, that is subsequently transferred
within 36 months of that initial transfer as provided in paragraph
(1), shall qualify for the exclusion from change in ownership
pursuant to this subdivision. In applying the 36-month limit
specified in the preceding sentence to the subsequent transfer to an
individual tenant, as provided in paragraph (1), of a rental space in
a mobilehome park that was initially transferred on or after January
1, 1995, to a nonprofit corporation, stock cooperative corporation,
tenant-in-common ownership group, or any other entity, the execution
of a purchase contract and the opening of a bona fide purchase escrow
with a licensed escrow agent shall be deemed to transfer the rental
space in compliance with that 36-month limit, provided that both of
the following conditions are met:
(i) The escrow is opened prior to the expiration of the 36-month
time period.
(ii) The escrow closes on a date no later than six months after
the end of the 36-month time period.
(B) A mobilehome park located within a disaster area that was
initially transferred on or after October 1, 1991, and before October
31, 1991, to a nonprofit corporation, stock cooperative corporation,
or other entity, that is subsequently transferred within 76 months
of that initial transfer as provided in paragraph (1), shall qualify
for the exclusion from change in ownership pursuant to this
subdivision. For purposes of the preceding sentence, "mobilehome park
located within a disaster area" means a mobilehome park that is
located in the County of Los Angeles in an area for which both of the
following apply:
(i) The Governor, as a result of the January 17, 1994, Northridge
earthquake, has declared the area to be in a state of disaster and
certified the area's need for assistance.
(ii) The President of the United States has, pursuant to federal
law, determined the area to be in a state of major disaster.
The exclusion from change in ownership pursuant to this
subdivision of a mobilehome park located within a disaster area shall
be effective commencing with the 1995-96 fiscal year, and shall not
require any affected county to refund any amount of property tax
levied with respect to a mobilehome park for the period from October
1, 1991, to June 30, 1995, inclusive.
(b) With respect to any transfer of any mobilehome park on or
after January 1, 1989, subject to this section, the individual
tenants who are renting at least a majority of the spaces in the
mobilehome park prior to the transfer to the entity formed by the
tenants for the acquisition of the park shall participate in the
transaction through the ownership of an aggregate of at least a
majority of voting stock of, or other ownership or membership
interest in, that entity.
(c) This section shall not apply if any fees charged the
mobilehome park tenants in connection with either the first or second
transfer exceed 15 percent of the total consideration paid for the
mobilehome park in the first transfer, plus any accrued interest and
taxes.
(d) If the assessor is notified in writing at the time the
transferee files the change in ownership statement that the
transferee intends to qualify the transfer under this section, the
mobilehome park shall not be reappraised pending satisfaction of the
relevant conditions set forth in this section for exclusion from
change in ownership. If the transferee fails to satisfy those
conditions, the assessor shall reappraise the mobilehome park and
levy escape assessments or supplemental assessments, as appropriate.
For escape or supplemental assessments levied pursuant to the
preceding sentence with respect to a mobilehome park located within a
disaster area, both of the following conditions shall apply:
(1) The limitations period shall be that period specified in
either subdivision (b) of Section 532 or subdivision (d) of Section
75.11, as applicable.
(2) For purposes of applying the limitations periods specified in
paragraph (1), the expiration date of the 76-month period specified
in subdivision (a) shall be deemed to be the date upon which the
initial transfer of the mobilehome park was reported to the assessor.
62.11. Change in ownership does not include the recordation of a
certificate of sale pursuant to subdivision (a) of Section 729.040 of
the Code of Civil Procedure, relating to property sold subject to
the right of redemption, for the period in which the right of
redemption exists.
63. Notwithstanding any other provision in this chapter, a change
of ownership shall not include any interspousal transfer, including,
but not limited to:
(a) Transfers to a trustee for the beneficial use of a spouse, or
the surviving spouse of a deceased transferor, or by a trustee of
such a trust to the spouse of the trustor,
(b) Transfers which take effect upon the death of a spouse,
(c) Transfers to a spouse or former spouse in connection with a
property settlement agreement or decree of dissolution of a marriage
or legal separation, or
(d) The creation, transfer, or termination, solely between
spouses, of any coowner's interest.
(e) The distribution of a legal entity's property to a spouse or
former spouse in exchange for the interest of such spouse in the
legal entity in connection with a property settlement agreement or a
decree of dissolution of a marriage or legal separation.
63.1. (a) Notwithstanding any other provision of this chapter, a
change in ownership shall not include the following purchases or
transfers for which a claim is filed pursuant to this section:
(1) (A) The purchase or transfer of real property which is the
principal residence of an eligible transferor in the case of a
purchase or transfer between parents and their children.
(B) A purchase or transfer of a principal residence from a foster
child to the child's biological parent shall not be excluded under
subparagraph (A) if the transferor child received that principal
residence, or interest therein, from a foster parent through a
purchase or transfer that was excluded under subparagraph (A).
(2) The purchase or transfer of the first one million dollars
($1,000,000) of full cash value of all other real property of an
eligible transferor in the case of a purchase or transfer between
parents and their children.
(3) (A) Subject to subparagraph (B), the purchase or transfer of
real property described in paragraphs (1) and (2) of subdivision (a)
occurring on or after March 27, 1996, between grandparents and their
grandchild or grandchildren, if all of the parents of that grandchild
or those grandchildren, who qualify as the children of the
grandparents, are deceased as of the date of purchase or transfer.
Notwithstanding any other provision of law, for the lien date for the
2006-07 fiscal year and each fiscal year thereafter, in determining
whether "all of the parents of that grandchild or those
grandchildren, who qualify as the children of the grandparents, are
deceased as of the date of purchase or transfer," a son-in-law or
daughter-in-law of the grandparent that is a stepparent to the
grandchild need not be deceased on the date of the transfer.
(B) A purchase or transfer of a principal residence shall not be
excluded pursuant to subparagraph (A) if the transferee grandchild or
grandchildren also received a principal residence, or interest
therein, through another purchase or transfer that was excludable
pursuant to paragraph (1) of subdivision (a). The full cash value of
any real property, other than a principal residence, that was
transferred to the grandchild or grandchildren pursuant to a purchase
or transfer that was excludable pursuant to paragraph (2) of
subdivision (a) and the full cash value of a principal residence that
fails to qualify for exclusion as a result of the preceding sentence
shall be included in applying, for purposes of paragraph (2) of
subdivision (a), the one million dollar ($1,000,000) full cash value
limit specified in paragraph (2) of subdivision (a).
(b) (1) For purposes of paragraph (1) of subdivision (a),
"principal residence" means a dwelling that is eligible for a
homeowners' exemption or a disabled veterans' exemption as a result
of the transferor's ownership and occupation of the dwelling.
"Principal residence" includes only that portion of the land
underlying the residence that consists of an area of reasonable size
that is used as a site for the residence.
(2) For purposes of paragraph (2) of subdivision (a), the
one-million-dollar ($1,000,000) exclusion shall apply separately to
each eligible transferor with respect to all purchases by and
transfers to eligible transferees on and after November 6, 1986, of
real property, other than the principal residence, of that eligible
transferor. The exclusion shall not apply to any property in which
the eligible transferor's interest was received through a transfer,
or transfers, excluded from change in ownership by the provisions of
either subdivision (f) of Section 62 or subdivision (b) of Section
65, unless the transferor qualifies as an original transferor under
subdivision (b) of Section 65. In the case of any purchase or
transfer subject to this paragraph involving two or more eligible
transferors, the transferors may elect to combine their separate
one-million-dollar ($1,000,000) exclusions and, upon making that
election, the combined amount of their separate exclusions shall
apply to any property jointly sold or transferred by the electing
transferors, provided that in no case shall the amount of full cash
value of real property of any one eligible transferor excluded under
this election exceed the amount of the transferor's separate unused
exclusion on the date of the joint sale or transfer.
(c) As used in this section:
(1) "Purchase or transfer between parents and their children"
means either a transfer from a parent or parents to a child or
children of the parent or parents or a transfer from a child or
children to a parent or parents of the child or children. For
purposes of this section, the date of any transfer between parents
and their children under a will or intestate succession shall be the
date of the decedent's death, if the decedent died on or after
November 6, 1986.
(2) "Purchase or transfer of real property between grandparents
and their grandchild or grandchildren" means a purchase or transfer
on or after March 27, 1996, from a grandparent or grandparents to a
grandchild or grandchildren if all of the parents of that grandchild
or those grandchildren who qualify as the children of the
grandparents are deceased as of the date of the transfer. For
purposes of this section, the date of any transfer between
grandparents and their grandchildren under a will or by intestate
succession shall be the date of the decedent's death. Notwithstanding
any other provision of law, for the lien date for the 2006-07 fiscal
year and each fiscal year thereafter, in determining whether "all of
the parents of that grandchild or those grandchildren, who qualify
as the children of the grandparents, are deceased as of the date of
purchase or transfer," a son-in-law or daughter-in-law of the
grandparent that is a stepparent to the grandchild need not be
deceased on the date of the transfer.
(3) "Children" means any of the following:
(A) Any child born of the parent or parents, except a child, as
defined in subparagraph (D), who has been adopted by another person
or persons.
(B) Any stepchild of the parent or parents and the spouse of that
stepchild while the relationship of stepparent and stepchild exists.
For purposes of this paragraph, the relationship of stepparent and
stepchild shall be deemed to exist until the marriage on which the
relationship is based is terminated by divorce, or, if the
relationship is terminated by death, until the remarriage of the
surviving stepparent.
(C) Any son-in-law or daughter-in-law of the parent or parents.
For the purposes of this paragraph, the relationship of parent and
son-in-law or daughter-in-law shall be deemed to exist until the
marriage on which the relationship is based is terminated by divorce,
or, if the relationship is terminated by death, until the remarriage
of the surviving son-in-law or daughter-in-law.
(D) Any child adopted by the parent or parents pursuant to
statute, other than an individual adopted after reaching the age of
18 years.
(E) Any foster child of a state-licensed foster parent, if that
child was not, because of a legal barrier, adopted by the foster
parent or foster parents before the child aged out of the foster care
system. For purposes of this paragraph, the relationship between a
foster child and foster parent shall be deemed to exist until
terminated by death. However, for purposes of a transfer that occurs
on the date of death, the relationship shall be deemed to exist on
the date of death.
(4) "Grandchild" or "grandchildren" means any child or children of
the child or children of the grandparent or grandparents.
(5) "Full cash value" means full cash value, as defined in Section
2 of Article XIII A of the California Constitution and Section
110.1, with any adjustments authorized by those sections, and the
full value of any new construction in progress, determined as of the
date immediately prior to the date of a purchase by or transfer to an
eligible transferee of real property subject to this section.
(6) "Eligible transferor" means a grandparent, parent, or child of
an eligible transferee.
(7) "Eligible transferee" means a parent, child, or grandchild of
an eligible transferor.
(8) "Real property" means real property as defined in Section 104.
Real property does not include any interest in a legal entity.
(9) "Transfer" includes, and is not limited to, any transfer of
the present beneficial ownership of property from an eligible
transferor to an eligible transferee through the medium of an inter
vivos or testamentary trust.
(10) "Social security number" also includes a taxpayer
identification number issued by the Internal Revenue Service in the
case in which the taxpayer is a foreign national who cannot obtain a
social security number.
(d) (1) The exclusions provided for in subdivision (a) shall not
be allowed unless the eligible transferee, the transferee's legal
representative, the trustee of the transferee's trust, or the
executor or administrator of the transferee's estate files a claim
with the assessor for the exclusion sought and furnishes to the
assessor each of the following:
(A) A written certification by the transferee, the transferee's
legal representative, the trustee of the transferee's trust, or the
executor or administrator of the transferee's estate, signed and made
under penalty of perjury that the transferee is a parent, child, or
grandchild of the transferor and that the transferor is his or her
parent, child, or grandparent. In the case of a
grandparent-grandchild transfer, the written certification shall also
include a certification that all the parents of the grandchild or
grandchildren who qualify as children of the grandparents were
deceased as of the date of the purchase or transfer and that the
grandchild or grandchildren did or did not receive a principal
residence excludable under paragraph (1) of subdivision (a) from the
deceased parents, and that the grandchild or grandchildren did or did
not receive real property other than a principal residence
excludable under paragraph (2) of subdivision (a) from the deceased
parents. The claimant shall provide legal substantiation of any
matter certified pursuant to this subparagraph at the request of the
county assessor.
(B) A written certification by the transferor, the transferor's
legal representative, the trustee of the transferor's trust, or the
executor or administrator of the transferor's estate, signed and made
under penalty of perjury that the transferor is a grandparent,
parent, or child of the transferee and that the transferor is seeking
the exclusion under this section and will not file a claim to
transfer the base year value of the property under Section 69.5.
(C) A written certification shall also include either or both of
the following:
(i) If the purchase or transfer of real property includes the
purchase or transfer of residential real property, a certification
that the residential real property is or is not the transferor's
principal residence.
(ii) If the purchase or transfer of real property includes the
purchase or transfer of real property other than the transferor's
principal residence, a certification that other real property of the
transferor that is subject to this section has or has not been
previously sold or transferred to an eligible transferee, the total
amount of full cash value, as defined in subdivision (c), of any real
property subject to this section that has been previously sold or
transferred by that transferor to eligible transferees, the location
of that real property, the social security number of each eligible
transferor, and the names of the eligible transferees of that
property.
(D) If there are multiple transferees, the certification and
signature may be made by any one of the transferees, if both of the
following conditions are met:
(i) The transferee has actual knowledge that, and the
certification signed by the transferee states that, all of the
transferees are eligible transferees within the meaning of this
section.
(ii) The certification is signed by the transferee as a true
statement made under penalty of perjury.
(E) In the case of a transfer between a foster parent and foster
child, the claim filed with the assessor shall include a certified
copy of the court decision regarding the foster child status of the
individual and a certified statement from the appropriate county
agency stating that the foster child was not, because of a legal
barrier, adopted by the foster parent or foster parents. Upon a
request by the county assessor, the claimant also shall provide to
the assessor legal substantiation of any matter certified under this
subparagraph.
(2) If the full cash value of the real property purchased by or
transferred to the transferee exceeds the permissible exclusion of
the transferor or the combined permissible exclusion of the
transferors, in the case of a purchase or transfer from two or more
joint transferors, taking into account any previous purchases by or
transfers to an eligible transferee from the same transferor or
transferors, the transferee shall specify in his or her claim the
amount and the allocation of the exclusion he or she is seeking.
Within any appraisal unit, as determined in accordance with
subdivision (d) of Section 51 by the assessor of the county in which
the real property is located, the exclusion shall be applied only on
a pro rata basis, however, and shall not be applied to a selected
portion or portions of the appraisal unit.
(e) (1) The State Board of Equalization shall design the form for
claiming eligibility. Except as provided in paragraph (2), any claim
under this section shall be filed:
(A) For transfers of real property between parents and their
children occurring prior to September 30, 1990, within three years
after the date of the purchase or transfer of real property for which
the claim is filed.
(B) For transfers of real property between parents and their
children occurring on or after September 30, 1990, and for the
purchase or transfer of real property between grandparents and their
grandchildren occurring on or after March 27, 1996, within three
years after the date of the purchase or transfer of real property for
which the claim is filed, or prior to transfer of the real property
to a third party, whichever is earlier.
(C) Notwithstanding subparagraphs (A) and (B), a claim shall be
deemed to be timely filed if it is filed within six months after the
date of mailing of a notice of supplemental or escape assessment,
issued as a result of the purchase or transfer of real property for
which the claim is filed.
(2) In the case in which the real property subject to purchase or
transfer has not been transferred to a third party, a claim for
exclusion under this section that is filed subsequent to the
expiration of the filing periods set forth in paragraph (1) shall be
considered by the assessor, subject to all of the following
conditions:
(A) Any exclusion granted pursuant to that claim shall apply
commencing with the lien date of the assessment year in which the
claim is filed.
(B) Under any exclusion granted pursuant to that claim, the
adjusted full cash value of the subject real property in the
assessment year described in subparagraph (A) shall be the adjusted
base year value of the subject real property in the assessment year
in which the excluded purchase or transfer took place, factored to
the assessment year described in subparagraph (A) for both of the
following:
(i) Inflation as annually determined in accordance with paragraph
(1) of subdivision (a) of Section 51.
(ii) Any subsequent new construction occurring with respect to the
subject real property.
(3) (A) Unless otherwise expressly provided, the provisions of
this subdivision shall apply to any purchase or transfer of real
property that occurred on or after November 6, 1986.
(B) Paragraph (2) shall apply to purchases or transfers between
parents and their children that occurred on or after November 6,
1986, and to purchases or transfers between grandparents and their
grandchildren that occurred on or after March 27, 1996.
(4) For purposes of this subdivision, a transfer of real property
to a parent or child of the transferor shall not be considered a
transfer to a third party.
(f) The assessor may report quarterly to the State Board of
Equalization all purchases or transfers, other than purchases or
transfers involving a principal residence, for which a claim for
exclusion is made pursuant to subdivision (d). Each report shall
contain the assessor's parcel number for each parcel for which the
exclusion is claimed, the amount of each exclusion claimed, the
social security number of each eligible transferor, and any other
information the board may require in order to monitor the
one-million-dollar ($1,000,000) limitation in paragraph (2) of
subdivision (a). In recognition of the state and local interests
served by the action made optional in this subdivision, the
Legislature encourages the assessor to continue taking the action
formerly mandated by this subdivision.
(g) This section shall apply to both voluntary transfers and
transfers resulting from a court order or judicial decree. Nothing in
this subdivision shall be construed as conflicting with paragraph
(1) of subdivision (c) or the general principle that transfers by
reason of death occur at the time of death.
(h) (1) Except as provided in paragraph (2), this section shall
apply to purchases and transfers of real property completed on or
after November 6, 1986, and shall not be effective for any change in
ownership, including a change in ownership arising on the date of a
decedent's death, that occurred prior to that date.
(2) This section shall apply to purchases or transfers of real
property between grandparents and their grandchildren occurring on or
after March 27, 1996, and, with respect to purchases or transfers of
real property between grandparents and their grandchildren, shall
not be effective for any change in ownership, including a change in
ownership arising on the date of a decedent's death, that occurred
prior to that date.
(i) A claim filed under this section is not a public document and
is not subject to public inspection, except that a claim shall be
available for inspection by the transferee and the transferor or
their respective spouse, the transferee's legal representative, the
transferor's legal representative, the trustee of the transferee's
trust, the trustee of the transferor's trust, and the executor or
administrator of the transferee's or transferor's estate.
(j) (1) If the assessor notifies the transferee in writing of
potential eligibility for exclusion from change in ownership under
this section, a certified claim for exclusion shall be filed with the
assessor within 45 days of the date of the notice of potential
eligibility. If a certified claim for exclusion is not filed within
45 days, the assessor may send a second notice of potential
eligibility for exclusion, notifying the transferee that a certified
claim for exclusion has not been received and that reassessment of
the property will commence unless a certified claim for exclusion is
filed within 60 days of the date of the second notice of potential
eligibility. The second notice of potential eligibility shall
indicate whether a certified claim for exclusion that is not filed
within 60 days will be subject to a processing fee as provided in
paragraph (2).
(2) If a certified claim for exclusion is not filed within 60 days
of the date of the second notice of potential eligibility and an
eligible transferee subsequently files a claim and qualifies for the
exclusion, the assessor may, upon authorization by a county board of
supervisors, require an eligible transferee to pay a one-time
processing fee, collected at the time the claim is submitted, and
reimbursed by the assessor if the claim is ineligible. The fee shall
be subject to the provisions of Chapter 12.5 (commencing with Section
54985) of Part 1 of Division 2 of Title 5 of the Government Code and
shall not exceed the amount of the actual and reasonable costs
incurred by the assessor for reassessment work done due to failure to
file the claim for exclusion or one hundred seventy-five dollars
($175), whichever is less.
(3) The failure to file a certified claim for exclusion within the
filing periods specified by this subdivision shall not be construed
to limit any exclusion from being granted pursuant to a claim filed
within the filing periods specified by subdivision (e).
64. (a) Except as provided in subdivision (i) of Section 61 and
subdivisions (c) and (d) of this section, the purchase or transfer of
ownership interests in legal entities, such as corporate stock or
partnership or limited liability company interests, shall not be
deemed to constitute a transfer of the real property of the legal
entity. This subdivision is applicable to the purchase or transfer of
ownership interests in a partnership without regard to whether it is
a continuing or a dissolved partnership.
(b) Any corporate reorganization, where all of the corporations
involved are members of an affiliated group, and that qualifies as a
reorganization under Section 368 of the United States Internal
Revenue Code and that is accepted as a nontaxable event by similar
California statutes, or any transfer of real property among members
of an affiliated group, or any reorganization of farm credit
institutions pursuant to the federal Farm Credit Act of 1971 (Public
Law 92-181), as amended, shall not be a change of ownership. The
taxpayer shall furnish proof, under penalty of perjury, to the
assessor that the transfer meets the requirements of this
subdivision.
For purposes of this subdivision, "affiliated group" means one or
more chains of corporations connected through stock ownership with a
common parent corporation if both of the following conditions are
met:
(1) One hundred percent of the voting stock, exclusive of any
share owned by directors, of each of the corporations, except the
parent corporation, is owned by one or more of the other
corporations.
(2) The common parent corporation owns, directly, 100 percent of
the voting stock, exclusive of any shares owned by directors, of at
least one of the other corporations.
(c) (1) When a corporation, partnership, limited liability
company, other 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, or
ownership interests in other legal entities, including any purchase
or transfer of 50 percent or less of the ownership interest through
which control or a majority ownership interest is obtained, the
purchase or transfer of that stock or other interest shall be a
change of ownership of the real property owned by the corporation,
partnership, limited liability company, or other legal entity in
which the controlling interest is obtained.
(2) On or after January 1, 1996, when an owner of a majority
ownership interest in any partnership obtains all of the remaining
ownership interests in that partnership or otherwise becomes the sole
partner, the purchase or transfer of the minority interests, subject
to the appropriate application of the step-transaction doctrine,
shall not be a change in ownership of the real property owned by the
partnership.
(d) If property is transferred on or after March 1, 1975, to a
legal entity in a transaction excluded from change in ownership by
paragraph (2) of subdivision (a) of Section 62, then the persons
holding ownership interests in that legal entity immediately after
the transfer shall be considered the "original coowners." Whenever
shares or other ownership interests representing cumulatively more
than 50 percent of the total interests in the entity are transferred
by any of the original coowners in one or more transactions, a change
in ownership of that real property owned by the legal entity shall
have occurred, and the property that was previously excluded from
change in ownership under the provisions of paragraph (2) of
subdivision (a) of Section 62 shall be reappraised.
The date of reappraisal shall be the date of the transfer of the
ownership interest representing individually or cumulatively more
than 50 percent of the interests in the entity.
A transfer of shares or other ownership interests that results in
a change in control of a corporation, partnership, limited liability
company, or any other legal entity is subject to reappraisal as
provided in subdivision (c) rather than this subdivision.
(e) To assist in the determination of whether a change of
ownership has occurred under subdivisions (c) and (d), the Franchise
Tax Board shall include a question in substantially the following
form on returns for partnerships, banks, and corporations (except
tax-exempt organizations):
If the corporation (or partnership or limited liability company)
owns real property in California, has cumulatively more than 50
percent of the voting stock (or more than 50 percent of total
interest in both partnership or limited liability company capital and
partnership or limited liability company profits) (1) been
transferred by the corporation (or partnership or limited liability
company) since March 1, 1975, or (2) been acquired by another legal
entity or person during the year (See instructions.)
If the entity answers "yes" to (1) or (2) in the above question,
then the Franchise Tax Board shall furnish the names and addresses of
that entity and of the stock or partnership or limited liability
company ownership interest transferees to the State Board of
Equalization.
65. (a) The creation, transfer, or termination of any joint tenancy
is a change in ownership except as provided in this section, Section
62, and Section 63. Upon a change in ownership of a joint tenancy
interest only the interest or portion which is thereby transferred
from one owner to another owner shall be reappraised.
(b) There shall be no change in ownership upon the creation or
transfer of a joint tenancy interest if the transferor or
transferors, after such creation or transfer, are among the joint
tenants. Upon the creation of a joint tenancy interest described in
this subdivision, the transferor or transferors shall be the
"original transferor or transferors" for purposes of determining the
property to be reappraised on subsequent transfers. The spouses of
original transferors shall also be considered original transferors
within the meaning of this section.
(c) Upon the termination of an interest in any joint tenancy
described in subdivision (b), the entire portion of the property held
by the original transferor or transferors prior to the creation of
the joint tenancy shall be reappraised unless it vests, in whole or
in part, in any remaining original transferor, in which case there
shall be no reappraisal. Upon the termination of the interest of the
last surviving original transferor, there shall be a reappraisal of
the interest then transferred and all other interests in the
properties held by all original transferors which were previously
excluded from reappraisal pursuant to this section.
(d) Upon the termination of an interest held by other than the
original transferor in any joint tenancy described in subdivision
(b), there shall be no reappraisal if the entire interest is
transferred either to an original transferor or to all remaining
joint tenants, provided that one of the remaining joint tenants is an
original transferor.
(e) For purposes of this section, for joint tenancies created on
or before March 1, 1975, it shall be rebuttably presumed that each
joint tenant holding an interest in property as of March 1, 1975,
shall be an "original transferor." This presumption is not applicable
to joint tenancies created after March 1, 1975.
65.1. (a) Except for a joint tenancy interest described in
subdivision (f) of Section 62, when an interest in a portion of real
property is purchased or changes ownership, only the interest or
portion transferred shall be reappraised. A purchase or change in
ownership of an interest with a market value of less than 5 percent
of the value of the total property shall not be reappraised if the
market value of the interest transferred is less than ten thousand
dollars ($10,000) provided, however, that transfers during any one
assessment year shall be cumulated for the purpose of determining the
percentage interests and value transferred.
(b) If a unit or lot within a cooperative housing corporation,
community apartment project, condominium, planned unit development,
shopping center, industrial park, or other residential, commercial,
or industrial land subdivision complex with common areas or
facilities is purchased or changes ownership, then only the unit or
lot transferred and the share in the common area reserved as an
appurtenance of such unit or lot shall be reappraised.
Notwithstanding any other provision of law, the increase in
property taxes resulting from such reappraisal shall be applied by
the owner of such property to the tenant-shareholder, lessee, or
occupant of such individual unit or lot only, and shall not be
prorated among all other units or lots of such property.
66. Change in ownership does not include any of the following:
(a) The creation, vesting, transfer, distribution, or termination
of a participant's or beneficiary's interest in an employee benefit
plan.
(b) Any contribution of real property to an employee benefit plan.
(c) Any acquisition by an employee benefit plan of the stock of
the employer corporation pursuant to which the employee benefit plan
obtains direct or indirect ownership or control of more than 50
percent of the voting stock of the employer corporation.
As used in this section, the terms "employer," "employee benefit
plan," "participant," and "beneficiary" shall be defined as they are
defined in the Employee Retirement Income Security Act of 1974.
67. "Purchased" or "purchase" means a change in ownership for
consideration.
68. For purposes of Section 2 of Article XIII A of the
Constitution, the term "change in ownership" shall not include the
acquisition of real property as a replacement for comparable property
if the person acquiring the real property has been displaced from
property in this state by eminent domain proceedings, by acquisition
by a public entity, or by governmental action which has resulted in a
judgment of inverse condemnation.
The adjusted base year value of the property acquired shall be the
lower of the fair market value of the property acquired or the value
which is the sum of the following:
(a) The adjusted base year value of the property from which the
person was displaced.
(b) The amount, if any, by which the full cash value of the
property acquired exceeds 120 percent of the amount received by the
person for the property from which the person was displaced.
The provisions of this section shall apply to eminent domain
proceedings, acquisitions, or judgments of inverse condemnation after
March 1, 1975, and shall affect only those assessments of that
property which occur after June 8, 1982.
Persons acquiring replacement property between March 1, 1975, and
January 1, 1983, shall request assessment under this section with the
assessor on or before January 1, 1987. Persons acquiring replacement
property on and after January 1, 1983, shall request assessment
within four years of the date the property was acquired by eminent
domain or purchase or the date the judgment of inverse condemnation
becomes final.
Any change in the adjusted base year value of the replacement
property acquired, resulting from the application of the provisions
of this section, shall be deemed to be effective on the first day of
the month following the month in which the property is acquired. The
change in value shall be treated as a change in ownership for the
purpose of placing supplemental assessments on the supplemental roll
pursuant to Chapter 3.5 (commencing with Section 75). The assessor
shall, however, appraise the replacement property acquired in
accordance with the provisions of this section rather than the
provisions of Section 75.10. The provisions of Chapter 3.5 shall be
liberally construed in order to provide the benefits of this section
and Section 2 of Article XIII A of the California Constitution to
affected property owners at the earliest possible date.
69. (a) Notwithstanding any other law, pursuant to Section 2 of
Article XIII A of the Constitution, the base year value of property
that is substantially damaged or destroyed by a disaster, as declared
by the Governor, may be transferred to comparable property within
the same county, which is acquired or newly constructed within five
years after the disaster, including in the case of the Northridge
earthquake, as a replacement for the substantially damaged or
destroyed property. At the time the base year value of the
substantially damaged or destroyed property is transferred to the
replacement property, the substantially damaged or destroyed property
shall be reassessed at its full cash value; however, the
substantially damaged or destroyed property shall retain its base
year value notwithstanding the transfer authorized by this section.
If the owner or owners of substantially damaged or destroyed property
receive property tax relief under this section, that property shall
not be eligible for property tax relief under subdivision (c) of
Section 70 in the event of its reconstruction.
(b) The replacement base year value of the replacement property
acquired shall be determined in accordance with this section.
The assessor shall use the following proced
60. A "change in ownership" means 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.
61. Except as otherwise provided in Section 62, change in
ownership, as defined in Section 60, includes, but is not limited to:
(a) The creation, renewal, sublease, assignment, or other transfer
of the right to produce or extract oil, gas, or other minerals
regardless of the period during which the right may be exercised. The
balance of the property, other than the mineral rights, shall not be
reappraised pursuant to this section.
(b) The creation, renewal, extension, or assignment of a taxable
possessory interest in tax exempt real property for any term. For
purposes of this subdivision:
(1) "Renewal" and "extension" do not include the granting of an
option to renew or extend an existing agreement pursuant to which the
term of possession of the existing agreement would, upon exercise of
the option, be lengthened, whether the option is granted in the
original agreement or subsequent thereto.
(2) Any "renewal" or "extension" of a possessory interest during
the reasonably anticipated term of possession used by the assessor to
value that interest does not cause a change in ownership until the
end of the reasonably anticipated term of possession used by the
assessor to value that interest. At the end of the reasonably
anticipated term of possession used by the assessor, a new base year
value, based on a new reasonably anticipated term of possession,
shall be established for the possessory interest.
(3) "Assignment" of a possessory interest means the transfer of
all rights held by a transferor in a possessory interest.
(c) (1) (A) The creation of a leasehold interest in taxable real
property for a term of 35 years or more (including renewal options).
(B) The termination of a leasehold interest in taxable real
property which had an original term of 35 years or more (including
renewal options).
(C) Any transfer of a leasehold interest having a remaining term
of 35 years or more (including renewal options).
(D) Any transfer of a lessor's interest in taxable real property
subject to a lease with a remaining term (including renewal options)
of less than 35 years.
(2) Only that portion of a property subject to that lease or
transfer shall be considered to have undergone a change in ownership.
(3) For the purpose of this subdivision, for 1979-80 and each year
thereafter, it shall be conclusively presumed that all homes
eligible for the homeowners' exemption, other than manufactured homes
located on rented or leased land and subject to taxation pursuant to
Part 13 (commencing with Section 5800) and floating homes subject to
taxation pursuant to Section 229, that are on leased land have a
renewal option of at least 35 years on the lease of that land,
whether or not in fact that renewal option exists in any contract or
agreement.
(d) (1) (A) A sublease of a taxable possessory interest in
tax-exempt real property for a term, including renewal options, that
exceeds half the length of the remaining term of the leasehold,
including renewal options.
(B) The termination of a sublease of a taxable possessory interest
in tax-exempt property with an original term, including renewal
options, that exceeds half the length of the remaining term of the
leasehold, including renewal options.
(C) Any transfer of a sublessee's interest with a remaining term,
including renewal options, that exceeds half of the remaining term of
the leasehold.
(2) Any transfer of a possessory interest in tax-exempt real
property subject to a sublease with a remaining term, including
renewal options, that does not exceed half the remaining term of the
leasehold, including renewal options.
(e) The creation, transfer, or termination of any joint tenancy
interest, except as provided in subdivision (f) of Section 62, and in
Section 63 and Section 65.
(f) The creation, transfer, or termination of any
tenancy-in-common interest, except as provided in subdivision (a) of
Section 62 and in Section 63.
(g) Any vesting of the right to possession or enjoyment of a
remainder or reversionary interest that occurs upon the termination
of a life estate or other similar precedent property interest, except
as provided in subdivision (d) of Section 62 and in Section 63.
(h) Any interests in real property that vest in persons other than
the trustor (or, pursuant to Section 63, his or her spouse) when a
revocable trust becomes irrevocable.
(i) The transfer of stock of a cooperative housing corporation,
vested with legal title to real property that conveys to the
transferee the exclusive right to occupancy and possession of that
property, or a portion thereof. A "cooperative housing corporation"
is a real estate development in which membership in the corporation,
by stock ownership, is coupled with the exclusive right to possess a
portion of the real property.
(j) The transfer of any interest in real property between a
corporation, partnership, or other legal entity and a shareholder,
partner, or any other person.
62. Change in ownership shall not include:
(a) (1) Any transfer between coowners that results in a change in
the method of holding title to the real property transferred without
changing the proportional interests of the coowners in that real
property, such as a partition of a tenancy in common.
(2) Any transfer between an individual or individuals and a legal
entity or between legal entities, such as a cotenancy to a
partnership, a partnership to a corporation, or a trust to a
cotenancy, that results solely in a change in the method of holding
title to the real property and in which proportional ownership
interests of the transferors and transferees, whether represented by
stock, partnership interest, or otherwise, in each and every piece of
real property transferred, remain the same after the transfer. The
provisions of this paragraph shall not apply to transfers also
excluded from change in ownership under the provisions of subdivision
(b) of Section 64.
(b) Any transfer for the purpose of perfecting title to the
property.
(c) (1) The creation, assignment, termination, or reconveyance of
a security interest; or (2) the substitution of a trustee under a
security instrument.
(d) Any transfer by the trustor, or by the trustor's spouse or
registered domestic partner, or by both, into a trust for so long as
(1) the transferor is the present beneficiary of the trust, or (2)
the trust is revocable; or any transfer by a trustee of such a trust
described in either clause (1) or (2) back to the trustor; or, any
creation or termination of a trust in which the trustor retains the
reversion and in which the interest of others does not exceed 12
years duration.
(e) Any transfer by an instrument whose terms reserve to the
transferor an estate for years or an estate for life. However, the
termination of such an estate for years or estate for life shall
constitute a change in ownership, except as provided in subdivision
(d) and in Section 63.
(f) The creation or transfer of a joint tenancy interest if the
transferor, after the creation or transfer, is one of the joint
tenants as provided in subdivision (b) of Section 65.
(g) Any transfer of a lessor's interest in taxable real property
subject to a lease with a remaining term (including renewal options)
of 35 years or more. For the purpose of this subdivision, for 1979-80
and each year thereafter, it shall be conclusively presumed that all
homes eligible for the homeowners' exemption, other than
manufactured homes located on rented or leased land and subject to
taxation pursuant to Part 13 (commencing with Section 5800) and
floating homes subject to taxation pursuant to Section 229, that are
on leased land have a renewal option of at least 35 years on the
lease of that land, whether or not in fact that renewal option exists
in any contract or agreement.
(h) Any purchase, redemption, or other transfer of the shares or
units of participation of a group trust, pooled fund, common trust
fund, or other collective investment fund established by a financial
institution.
(i) Any transfer of stock or membership certificate in a housing
cooperative that was financed under one mortgage, provided that
mortgage was insured under Section 213, 221(d)(3), 221(d)(4), or 236
of the National Housing Act, as amended, or that housing cooperative
was financed or assisted pursuant to Section 514, 515, or 516 of the
Housing Act of 1949 or Section 202 of the Housing Act of 1959, or the
housing cooperative was financed by a direct loan from the
California Housing Finance Agency, and provided that the regulatory
and occupancy agreements were approved by the governmental lender or
insurer, and provided that the transfer is to the housing cooperative
or to a person or family qualifying for purchase by reason of
limited income. Any subsequent transfer from the housing cooperative
to a person or family not eligible for state or federal assistance in
reduction of monthly carrying charges or interest reduction
assistance by reason of the income level of that person or family
shall constitute a change of ownership.
(j) Any transfer during the period March 1, 1975, to March 1,
1981, between coowners in any property that was held by them as
coowners for all or part of that period, and which was eligible for a
homeowner's exemption during the period of the coownership,
notwithstanding any other provision of this chapter. Any transferee
whose interest was revalued in contravention of the provisions of
this subdivision shall obtain a reversal of that revaluation with
respect to the 1980-81 assessment year and thereafter, upon
application to the county assessor of the county in which the
property is located filed on or before March 26, 1982. No refunds
shall be made under this subdivision for any assessment year prior to
the 1980-81 fiscal year.
(k) Any transfer of property or an interest therein between a
corporation sole, a religious corporation, a public benefit
corporation, and a holding corporation as defined in Section 23701h
holding title for the benefit of any of these corporations, or any
combination thereof (including any transfer from one entity to the
same type of entity), provided that both the transferee and
transferor are regulated by laws, rules, regulations, or canons of
the same religious denomination.
(l) Any transfer, that would otherwise be a transfer subject to
reappraisal under this chapter, between or among the same parties for
the purpose of correcting or reforming a deed to express the true
intentions of the parties, provided that the original relationship
between the grantor and grantee is not changed.
(m) Any intrafamily transfer of an eligible dwelling unit from a
parent or parents or legal guardian or guardians to a minor child or
children or between or among minor siblings as a result of a court
order or judicial decree due to the death of the parent or parents.
As used in this subdivision, "eligible dwelling unit" means the
dwelling unit that was the principal place of residence of the minor
child or children prior to the transfer and remains the principal
place of residence of the minor child or children after the transfer.
(n) Any transfer of an eligible dwelling unit, whether by will,
devise, or inheritance, from a parent or parents to a child or
children, or from a guardian or guardians to a ward or wards, if the
child, children, ward, or wards have been disabled, as provided in
subdivision (e) of Section 12304 of the Welfare and Institutions
Code, for at least five years preceding the transfer and if the
child, children, ward, or wards have adjusted gross income that, when
combined with the adjusted gross income of a spouse or spouses,
parent or parents, and child or children, does not exceed twenty
thousand dollars ($20,000) in the year in which the transfer occurs.
As used in this subdivision, "child" or "ward" includes a minor or an
adult. As used in this subdivision, "eligible dwelling unit" means
the dwelling unit that was the principal place of residence of the
child or children, or ward or wards for at least five years preceding
the transfer and remains the principal place of residence of the
child or children, or ward or wards after the transfer. Any
transferee whose property was reassessed in contravention of the
provisions of this subdivision for the 1984-85 assessment year shall
obtain a reversal of that reassessment upon application to the county
assessor of the county in which the property is located. Application
by the transferee shall be made to the assessor no later than 30
days after the later of either the transferee's receipt of notice of
reassessment pursuant to Section 75.31 or the end of the 1984-85
fiscal year.
(o) Any transfer of a possessory interest in tax-exempt real
property subject to a sublease with a remaining term, including
renewal options, that exceeds half the length of the remaining term
of the leasehold, including renewal options.
(p) (1) Commencing on January 1, 2000, any transfer between
registered domestic partners, as defined in Section 297 of the Family
Code, including, but not limited to:
(A) Transfers to a trustee for the beneficial use of a registered
domestic partner, or the surviving registered domestic partner of a
deceased transferor, or by a trustee of such a trust to the
registered domestic partner of the trustor.
(B) Transfers that take effect upon the death of a registered
domestic partner.
(C) Transfers to a registered domestic partner or former
registered domestic partner in connection with a property settlement
agreement or decree of dissolution of a registered domestic
partnership or legal separation.
(D) The creation, transfer, or termination, solely between
registered domestic partners, of any coowner's interest.
(E) The distribution of a legal entity's property to a registered
domestic partner or former registered domestic partner in exchange
for the interest of the registered domestic partner in the legal
entity in connection with a property settlement agreement or a decree
of dissolution of a registered domestic partnership or legal
separation.
(2) Any transferee whose property was reassessed in contravention
of the provisions of this subdivision for a transfer occurring
between January 1, 2000, and January 1, 2006, shall obtain a reversal
of that reassessment upon application to the county assessor of the
county in which the property is located. Application by the
transferee shall be made to the assessor no later than June 30, 2009.
A county may charge a fee for its costs related to the application
and reassessment reversal in an amount that does not exceed the
actual costs incurred. This paragraph shall be liberally construed to
provide the benefits of this subdivision and Article XIII A of the
California Constitution to registered domestic partners.
(A) After consultation with the California Assessors' Association,
the State Board of Equalization shall prescribe the form for
claiming the reassessment reversal described in paragraph (2). The
claim form shall be entitled "Claim for Reassessment Reversal for
Registered Domestic Partners." The claim shall state on its face that
a "certificate of registered domestic partnership" is available upon
request from the California Secretary of State.
(B) The information on the claim shall include a description of
the property, the parties to the transfer of interest in the
property, the date of the transfer of interest in the property, and a
statement that the transferee registered domestic partner and the
transferor registered domestic partner were, on the date of transfer,
in a registered domestic partnership as defined in Section 297 of
the Family Code.
(C) The claimant shall declare that the information provided on
the form is true, correct, and complete to the best of his or her
knowledge and belief.
(D) The claimant shall provide with the completed claim the
"Certificate of Registered Domestic Partnership," or photocopy
thereof, naming the transferee and transferor as registered domestic
partners and reflecting the creation of the registered domestic
partnership on a date prior to, or concurrent with, the date of the
transfer for which a reassessment reversal is requested.
(E) Any reassessment reversal granted pursuant to a claim shall
apply commencing with the lien date of the assessment year, as
defined in Section 118, in which the claim is filed. No refunds shall
be made under this paragraph for any prior assessment year.
(F) Under any reassessment reversal granted pursuant to that
claim, the adjusted full cash value of the subject real property in
the assessment year described in subparagraph (E) shall be the
adjusted base year value of the subject real property in the
assessment year in which the excluded purchase or transfer took
place, factored to the assessment year described in subparagraph (E)
for both of the following:
(i) Inflation as annually determined in accordance with paragraph
(1) of subdivision (a) of Section 51.
(ii) Any subsequent new construction occurring with respect to the
subject real property.
62.1. (a) Change in ownership shall not include the following:
(1) Any transfer, on or after January 1, 1985, of a mobilehome
park to a nonprofit corporation, stock cooperative corporation,
limited equity stock cooperative, or other entity formed by the
tenants of a mobilehome park, for the purpose of purchasing the
mobilehome park, provided that, with respect to any transfer of a
mobilehome park on or after January 1, 1989, subject to this
paragraph, the individual tenants who were renting at least 51
percent of the spaces in the mobilehome park prior to the transfer
participate in the transaction through the ownership of an aggregate
of at least 51 percent of the voting stock of, or other ownership or
membership interests in, the entity which acquires the park. If, on
or after January 1, 1998, a park is acquired by an entity that did
not attain an initial tenant participation level of at least 51
percent on the date of the transfer, the entity shall have up to one
year after the date of the transfer to attain a tenant participation
level of at least 51 percent. If an individual tenant notifies the
county assessor of the intention to comply with the conditions set
forth in the preceding sentence, the mobilehome park may not be
reappraised by the assessor during that period. However, if a tenant
participation level of at least 51 percent is not attained within the
one-year period, the county assessor shall thereafter levy escape
assessments for the mobilehome park transfer.
(2) Any transfer or transfers on or after January 1, 1985, of
rental spaces in a mobilehome park to the individual tenants of the
rental spaces, provided that (1) at least 51 percent of the rental
spaces are purchased by individual tenants renting their spaces prior
to purchase, and (2) the individual tenants of these spaces form,
within one year after the first purchase of a rental space by an
individual tenant, a resident organization as described in
subdivision (l) of Section 50781 of the Health and Safety Code, to
operate and maintain the park. If, on or after January 1, 1985, an
individual tenant or tenants notify the county assessor of the
intention to comply with the conditions set forth in the preceding
sentence, any mobilehome park rental space that is purchased by an
individual tenant in that mobilehome park during that period shall
not be reappraised by the assessor. However, if all of the conditions
set forth in the first sentence of this paragraph are not satisfied,
the county assessor shall thereafter levy escape assessments for the
spaces so transferred. This paragraph shall apply only to those
rental mobilehome parks that have been in operation for five years or
more.
(b) (1) If the transfer of a mobilehome park has been excluded
from a change in ownership pursuant to paragraph (1) of subdivision
(a) and the park has not been converted to condominium, stock
cooperative ownership, or limited equity cooperative ownership, any
transfer on or after January 1, 1989, of shares of the voting stock
of, or other ownership or membership interests in, the entity that
acquired the park in accordance with paragraph (1) of subdivision (a)
shall be a change in ownership of a pro rata portion of the real
property of the park unless the transfer is for the purpose of
converting the park to condominium, stock cooperative ownership, or
limited equity cooperative ownership or is excluded from change in
ownership by Section 62, 63, or 63.1.
(2) For the purposes of this subdivision, "pro rata portion of the
real property" means the total real property of the mobilehome park
multiplied by a fraction consisting of the number of shares of voting
stock, or other ownership or membership interests, transferred
divided by the total number of outstanding issued or unissued shares
of voting stock of, or other ownership or membership interests in,
the entity that acquired the park in accordance with paragraph (1) of
subdivision (a).
(3) Any pro rata portion or portions of real property that changed
ownership pursuant to this subdivision may be separately assessed as
provided in Section 2188.10.
(4) (A) Notwithstanding any other provision of law, after an
exclusion under subdivision (a), the assessor may not levy any escape
or supplemental assessment with respect to any change in ownership
of a pro rata portion of the real property of the mobilehome park
that occurred between January 1, 1989, and January 1, 2002, and for
which the assessor did not, prior to January 1, 2000, levy any
assessments. However, commencing with the January 1, 2002, lien date,
the assessor shall correct the base year value of the pro rata
portion of the real property of the park to properly reflect these
changes in ownership. A mobilehome park shall provide information
requested by the assessor that is necessary to correct the base year
value of the property for purposes of this paragraph.
(B) When an assessor corrects the base year value of the real
property of the park pursuant to subparagraph (A), the assessor shall
notify parks that residents may be eligible for property tax
assistance programs offered by either the Controller or the Franchise
Tax Board for senior citizens, or blind or disabled persons.
(C) Any outstanding taxes that were levied between January 1,
2000, and January 1, 2002, as a result of a pro rata change in
ownership as described in subparagraph (A) shall be canceled.
However, there shall be no refund of taxes, as so levied, that were
paid prior to January 1, 2002.
(5) A mobilehome park that does not utilize recorded deeds to
transfer ownership interest in the spaces or lots shall file, by
February 1 of each year, a report with the county assessor's office
containing all of the following information:
(A) The full name and mailing address of each owner, stockholder,
or holder of an ownership interest in the mobilehome park.
(B) The situs address, including space number, of each unit.
(C) The date that the ownership interest was acquired.
(D) If the unit is a manufactured home, the Department of Housing
and Community Development decal number or serial number, or both, and
whether the manufactured home is subject to the vehicle license fee
or the local property tax.
(6) Within 30 days of a change in ownership, the new resident
owner or other purchaser or transferee of a manufactured home within
a mobilehome park that does not utilize recorded deeds to transfer
ownership interest in the spaces or lots shall file a change in
ownership statement described in either Section 480 or 480.2.
(7) Failure to comply with the reporting requirement described in
paragraph (5) shall result in a penalty pursuant to Section 482.
(c) It is the intent of the Legislature that, in order to
facilitate affordable conversions of mobilehome parks to tenant
ownership, paragraph (1) of subdivision (a) apply to all bona fide
transfers of rental mobilehome parks to tenant ownership, including,
but not limited to, those parks converted to tenant ownership as a
nonprofit corporation made on or after January 1, 1985.
62.2. (a) (1) Subject to paragraph (2), change in ownership shall
not include any transfer on or after January 1, 1989, of a mobilehome
park to a nonprofit corporation, stock cooperative corporation,
tenant-in-common ownership group, or any other entity, including a
governmental entity, if, within 18 months after the transfer, the
mobilehome park is transferred by that corporation or other entity,
including a governmental entity, to a nonprofit corporation, stock
cooperative corporation, or other entity formed by the tenants of the
mobilehome park in a transaction that is excluded from change in
ownership by paragraph (1) of subdivision (a) of Section 62.1, or at
least 51 percent of the mobilehome park rental spaces are transferred
to the individual tenants of those spaces in a transaction excluded
from change in ownership by paragraph (2) subdivision (a) of Section
62.1.
(2) (A) Any mobilehome park that was initially transferred on or
after January 1, 1993, to a nonprofit corporation, stock cooperative
corporation, tenant-in-common ownership group, or any other entity,
including a governmental entity, that is subsequently transferred
within 36 months of that initial transfer as provided in paragraph
(1), shall qualify for the exclusion from change in ownership
pursuant to this subdivision. In applying the 36-month limit
specified in the preceding sentence to the subsequent transfer to an
individual tenant, as provided in paragraph (1), of a rental space in
a mobilehome park that was initially transferred on or after January
1, 1995, to a nonprofit corporation, stock cooperative corporation,
tenant-in-common ownership group, or any other entity, the execution
of a purchase contract and the opening of a bona fide purchase escrow
with a licensed escrow agent shall be deemed to transfer the rental
space in compliance with that 36-month limit, provided that both of
the following conditions are met:
(i) The escrow is opened prior to the expiration of the 36-month
time period.
(ii) The escrow closes on a date no later than six months after
the end of the 36-month time period.
(B) A mobilehome park located within a disaster area that was
initially transferred on or after October 1, 1991, and before October
31, 1991, to a nonprofit corporation, stock cooperative corporation,
or other entity, that is subsequently transferred within 76 months
of that initial transfer as provided in paragraph (1), shall qualify
for the exclusion from change in ownership pursuant to this
subdivision. For purposes of the preceding sentence, "mobilehome park
located within a disaster area" means a mobilehome park that is
located in the County of Los Angeles in an area for which both of the
following apply:
(i) The Governor, as a result of the January 17, 1994, Northridge
earthquake, has declared the area to be in a state of disaster and
certified the area's need for assistance.
(ii) The President of the United States has, pursuant to federal
law, determined the area to be in a state of major disaster.
The exclusion from change in ownership pursuant to this
subdivision of a mobilehome park located within a disaster area shall
be effective commencing with the 1995-96 fiscal year, and shall not
require any affected county to refund any amount of property tax
levied with respect to a mobilehome park for the period from October
1, 1991, to June 30, 1995, inclusive.
(b) With respect to any transfer of any mobilehome park on or
after January 1, 1989, subject to this section, the individual
tenants who are renting at least a majority of the spaces in the
mobilehome park prior to the transfer to the entity formed by the
tenants for the acquisition of the park shall participate in the
transaction through the ownership of an aggregate of at least a
majority of voting stock of, or other ownership or membership
interest in, that entity.
(c) This section shall not apply if any fees charged the
mobilehome park tenants in connection with either the first or second
transfer exceed 15 percent of the total consideration paid for the
mobilehome park in the first transfer, plus any accrued interest and
taxes.
(d) If the assessor is notified in writing at the time the
transferee files the change in ownership statement that the
transferee intends to qualify the transfer under this section, the
mobilehome park shall not be reappraised pending satisfaction of the
relevant conditions set forth in this section for exclusion from
change in ownership. If the transferee fails to satisfy those
conditions, the assessor shall reappraise the mobilehome park and
levy escape assessments or supplemental assessments, as appropriate.
For escape or supplemental assessments levied pursuant to the
preceding sentence with respect to a mobilehome park located within a
disaster area, both of the following conditions shall apply:
(1) The limitations period shall be that period specified in
either subdivision (b) of Section 532 or subdivision (d) of Section
75.11, as applicable.
(2) For purposes of applying the limitations periods specified in
paragraph (1), the expiration date of the 76-month period specified
in subdivision (a) shall be deemed to be the date upon which the
initial transfer of the mobilehome park was reported to the assessor.
62.11. Change in ownership does not include the recordation of a
certificate of sale pursuant to subdivision (a) of Section 729.040 of
the Code of Civil Procedure, relating to property sold subject to
the right of redemption, for the period in which the right of
redemption exists.
63. Notwithstanding any other provision in this chapter, a change
of ownership shall not include any interspousal transfer, including,
but not limited to:
(a) Transfers to a trustee for the beneficial use of a spouse, or
the surviving spouse of a deceased transferor, or by a trustee of
such a trust to the spouse of the trustor,
(b) Transfers which take effect upon the death of a spouse,
(c) Transfers to a spouse or former spouse in connection with a
property settlement agreement or decree of dissolution of a marriage
or legal separation, or
(d) The creation, transfer, or termination, solely between
spouses, of any coowner's interest.
(e) The distribution of a legal entity's property to a spouse or
former spouse in exchange for the interest of such spouse in the
legal entity in connection with a property settlement agreement or a
decree of dissolution of a marriage or legal separation.
63.1. (a) Notwithstanding any other provision of this chapter, a
change in ownership shall not include the following purchases or
transfers for which a claim is filed pursuant to this section:
(1) (A) The purchase or transfer of real property which is the
principal residence of an eligible transferor in the case of a
purchase or transfer between parents and their children.
(B) A purchase or transfer of a principal residence from a foster
child to the child's biological parent shall not be excluded under
subparagraph (A) if the transferor child received that principal
residence, or interest therein, from a foster parent through a
purchase or transfer that was excluded under subparagraph (A).
(2) The purchase or transfer of the first one million dollars
($1,000,000) of full cash value of all other real property of an
eligible transferor in the case of a purchase or transfer between
parents and their children.
(3) (A) Subject to subparagraph (B), the purchase or transfer of
real property described in paragraphs (1) and (2) of subdivision (a)
occurring on or after March 27, 1996, between grandparents and their
grandchild or grandchildren, if all of the parents of that grandchild
or those grandchildren, who qualify as the children of the
grandparents, are deceased as of the date of purchase or transfer.
Notwithstanding any other provision of law, for the lien date for the
2006-07 fiscal year and each fiscal year thereafter, in determining
whether "all of the parents of that grandchild or those
grandchildren, who qualify as the children of the grandparents, are
deceased as of the date of purchase or transfer," a son-in-law or
daughter-in-law of the grandparent that is a stepparent to the
grandchild need not be deceased on the date of the transfer.
(B) A purchase or transfer of a principal residence shall not be
excluded pursuant to subparagraph (A) if the transferee grandchild or
grandchildren also received a principal residence, or interest
therein, through another purchase or transfer that was excludable
pursuant to paragraph (1) of subdivision (a). The full cash value of
any real property, other than a principal residence, that was
transferred to the grandchild or grandchildren pursuant to a purchase
or transfer that was excludable pursuant to paragraph (2) of
subdivision (a) and the full cash value of a principal residence that
fails to qualify for exclusion as a result of the preceding sentence
shall be included in applying, for purposes of paragraph (2) of
subdivision (a), the one million dollar ($1,000,000) full cash value
limit specified in paragraph (2) of subdivision (a).
(b) (1) For purposes of paragraph (1) of subdivision (a),
"principal residence" means a dwelling that is eligible for a
homeowners' exemption or a disabled veterans' exemption as a result
of the transferor's ownership and occupation of the dwelling.
"Principal residence" includes only that portion of the land
underlying the residence that consists of an area of reasonable size
that is used as a site for the residence.
(2) For purposes of paragraph (2) of subdivision (a), the
one-million-dollar ($1,000,000) exclusion shall apply separately to
each eligible transferor with respect to all purchases by and
transfers to eligible transferees on and after November 6, 1986, of
real property, other than the principal residence, of that eligible
transferor. The exclusion shall not apply to any property in which
the eligible transferor's interest was received through a transfer,
or transfers, excluded from change in ownership by the provisions of
either subdivision (f) of Section 62 or subdivision (b) of Section
65, unless the transferor qualifies as an original transferor under
subdivision (b) of Section 65. In the case of any purchase or
transfer subject to this paragraph involving two or more eligible
transferors, the transferors may elect to combine their separate
one-million-dollar ($1,000,000) exclusions and, upon making that
election, the combined amount of their separate exclusions shall
apply to any property jointly sold or transferred by the electing
transferors, provided that in no case shall the amount of full cash
value of real property of any one eligible transferor excluded under
this election exceed the amount of the transferor's separate unused
exclusion on the date of the joint sale or transfer.
(c) As used in this section:
(1) "Purchase or transfer between parents and their children"
means either a transfer from a parent or parents to a child or
children of the parent or parents or a transfer from a child or
children to a parent or parents of the child or children. For
purposes of this section, the date of any transfer between parents
and their children under a will or intestate succession shall be the
date of the decedent's death, if the decedent died on or after
November 6, 1986.
(2) "Purchase or transfer of real property between grandparents
and their grandchild or grandchildren" means a purchase or transfer
on or after March 27, 1996, from a grandparent or grandparents to a
grandchild or grandchildren if all of the parents of that grandchild
or those grandchildren who qualify as the children of the
grandparents are deceased as of the date of the transfer. For
purposes of this section, the date of any transfer between
grandparents and their grandchildren under a will or by intestate
succession shall be the date of the decedent's death. Notwithstanding
any other provision of law, for the lien date for the 2006-07 fiscal
year and each fiscal year thereafter, in determining whether "all of
the parents of that grandchild or those grandchildren, who qualify
as the children of the grandparents, are deceased as of the date of
purchase or transfer," a son-in-law or daughter-in-law of the
grandparent that is a stepparent to the grandchild need not be
deceased on the date of the transfer.
(3) "Children" means any of the following:
(A) Any child born of the parent or parents, except a child, as
defined in subparagraph (D), who has been adopted by another person
or persons.
(B) Any stepchild of the parent or parents and the spouse of that
stepchild while the relationship of stepparent and stepchild exists.
For purposes of this paragraph, the relationship of stepparent and
stepchild shall be deemed to exist until the marriage on which the
relationship is based is terminated by divorce, or, if the
relationship is terminated by death, until the remarriage of the
surviving stepparent.
(C) Any son-in-law or daughter-in-law of the parent or parents.
For the purposes of this paragraph, the relationship of parent and
son-in-law or daughter-in-law shall be deemed to exist until the
marriage on which the relationship is based is terminated by divorce,
or, if the relationship is terminated by death, until the remarriage
of the surviving son-in-law or daughter-in-law.
(D) Any child adopted by the parent or parents pursuant to
statute, other than an individual adopted after reaching the age of
18 years.
(E) Any foster child of a state-licensed foster parent, if that
child was not, because of a legal barrier, adopted by the foster
parent or foster parents before the child aged out of the foster care
system. For purposes of this paragraph, the relationship between a
foster child and foster parent shall be deemed to exist until
terminated by death. However, for purposes of a transfer that occurs
on the date of death, the relationship shall be deemed to exist on
the date of death.
(4) "Grandchild" or "grandchildren" means any child or children of
the child or children of the grandparent or grandparents.
(5) "Full cash value" means full cash value, as defined in Section
2 of Article XIII A of the California Constitution and Section
110.1, with any adjustments authorized by those sections, and the
full value of any new construction in progress, determined as of the
date immediately prior to the date of a purchase by or transfer to an
eligible transferee of real property subject to this section.
(6) "Eligible transferor" means a grandparent, parent, or child of
an eligible transferee.
(7) "Eligible transferee" means a parent, child, or grandchild of
an eligible transferor.
(8) "Real property" means real property as defined in Section 104.
Real property does not include any interest in a legal entity.
(9) "Transfer" includes, and is not limited to, any transfer of
the present beneficial ownership of property from an eligible
transferor to an eligible transferee through the medium of an inter
vivos or testamentary trust.
(10) "Social security number" also includes a taxpayer
identification number issued by the Internal Revenue Service in the
case in which the taxpayer is a foreign national who cannot obtain a
social security number.
(d) (1) The exclusions provided for in subdivision (a) shall not
be allowed unless the eligible transferee, the transferee's legal
representative, the trustee of the transferee's trust, or the
executor or administrator of the transferee's estate files a claim
with the assessor for the exclusion sought and furnishes to the
assessor each of the following:
(A) A written certification by the transferee, the transferee's
legal representative, the trustee of the transferee's trust, or the
executor or administrator of the transferee's estate, signed and made
under penalty of perjury that the transferee is a parent, child, or
grandchild of the transferor and that the transferor is his or her
parent, child, or grandparent. In the case of a
grandparent-grandchild transfer, the written certification shall also
include a certification that all the parents of the grandchild or
grandchildren who qualify as children of the grandparents were
deceased as of the date of the purchase or transfer and that the
grandchild or grandchildren did or did not receive a principal
residence excludable under paragraph (1) of subdivision (a) from the
deceased parents, and that the grandchild or grandchildren did or did
not receive real property other than a principal residence
excludable under paragraph (2) of subdivision (a) from the deceased
parents. The claimant shall provide legal substantiation of any
matter certified pursuant to this subparagraph at the request of the
county assessor.
(B) A written certification by the transferor, the transferor's
legal representative, the trustee of the transferor's trust, or the
executor or administrator of the transferor's estate, signed and made
under penalty of perjury that the transferor is a grandparent,
parent, or child of the transferee and that the transferor is seeking
the exclusion under this section and will not file a claim to
transfer the base year value of the property under Section 69.5.
(C) A written certification shall also include either or both of
the following:
(i) If the purchase or transfer of real property includes the
purchase or transfer of residential real property, a certification
that the residential real property is or is not the transferor's
principal residence.
(ii) If the purchase or transfer of real property includes the
purchase or transfer of real property other than the transferor's
principal residence, a certification that other real property of the
transferor that is subject to this section has or has not been
previously sold or transferred to an eligible transferee, the total
amount of full cash value, as defined in subdivision (c), of any real
property subject to this section that has been previously sold or
transferred by that transferor to eligible transferees, the location
of that real property, the social security number of each eligible
transferor, and the names of the eligible transferees of that
property.
(D) If there are multiple transferees, the certification and
signature may be made by any one of the transferees, if both of the
following conditions are met:
(i) The transferee has actual knowledge that, and the
certification signed by the transferee states that, all of the
transferees are eligible transferees within the meaning of this
section.
(ii) The certification is signed by the transferee as a true
statement made under penalty of perjury.
(E) In the case of a transfer between a foster parent and foster
child, the claim filed with the assessor shall include a certified
copy of the court decision regarding the foster child status of the
individual and a certified statement from the appropriate county
agency stating that the foster child was not, because of a legal
barrier, adopted by the foster parent or foster parents. Upon a
request by the county assessor, the claimant also shall provide to
the assessor legal substantiation of any matter certified under this
subparagraph.
(2) If the full cash value of the real property purchased by or
transferred to the transferee exceeds the permissible exclusion of
the transferor or the combined permissible exclusion of the
transferors, in the case of a purchase or transfer from two or more
joint transferors, taking into account any previous purchases by or
transfers to an eligible transferee from the same transferor or
transferors, the transferee shall specify in his or her claim the
amount and the allocation of the exclusion he or she is seeking.
Within any appraisal unit, as determined in accordance with
subdivision (d) of Section 51 by the assessor of the county in which
the real property is located, the exclusion shall be applied only on
a pro rata basis, however, and shall not be applied to a selected
portion or portions of the appraisal unit.
(e) (1) The State Board of Equalization shall design the form for
claiming eligibility. Except as provided in paragraph (2), any claim
under this section shall be filed:
(A) For transfers of real property between parents and their
children occurring prior to September 30, 1990, within three years
after the date of the purchase or transfer of real property for which
the claim is filed.
(B) For transfers of real property between parents and their
children occurring on or after September 30, 1990, and for the
purchase or transfer of real property between grandparents and their
grandchildren occurring on or after March 27, 1996, within three
years after the date of the purchase or transfer of real property for
which the claim is filed, or prior to transfer of the real property
to a third party, whichever is earlier.
(C) Notwithstanding subparagraphs (A) and (B), a claim shall be
deemed to be timely filed if it is filed within six months after the
date of mailing of a notice of supplemental or escape assessment,
issued as a result of the purchase or transfer of real property for
which the claim is filed.
(2) In the case in which the real property subject to purchase or
transfer has not been transferred to a third party, a claim for
exclusion under this section that is filed subsequent to the
expiration of the filing periods set forth in paragraph (1) shall be
considered by the assessor, subject to all of the following
conditions:
(A) Any exclusion granted pursuant to that claim shall apply
commencing with the lien date of the assessment year in which the
claim is filed.
(B) Under any exclusion granted pursuant to that claim, the
adjusted full cash value of the subject real property in the
assessment year described in subparagraph (A) shall be the adjusted
base year value of the subject real property in the assessment year
in which the excluded purchase or transfer took place, factored to
the assessment year described in subparagraph (A) for both of the
following:
(i) Inflation as annually determined in accordance with paragraph
(1) of subdivision (a) of Section 51.
(ii) Any subsequent new construction occurring with respect to the
subject real property.
(3) (A) Unless otherwise expressly provided, the provisions of
this subdivision shall apply to any purchase or transfer of real
property that occurred on or after November 6, 1986.
(B) Paragraph (2) shall apply to purchases or transfers between
parents and their children that occurred on or after November 6,
1986, and to purchases or transfers between grandparents and their
grandchildren that occurred on or after March 27, 1996.
(4) For purposes of this subdivision, a transfer of real property
to a parent or child of the transferor shall not be considered a
transfer to a third party.
(f) The assessor may report quarterly to the State Board of
Equalization all purchases or transfers, other than purchases or
transfers involving a principal residence, for which a claim for
exclusion is made pursuant to subdivision (d). Each report shall
contain the assessor's parcel number for each parcel for which the
exclusion is claimed, the amount of each exclusion claimed, the
social security number of each eligible transferor, and any other
information the board may require in order to monitor the
one-million-dollar ($1,000,000) limitation in paragraph (2) of
subdivision (a). In recognition of the state and local interests
served by the action made optional in this subdivision, the
Legislature encourages the assessor to continue taking the action
formerly mandated by this subdivision.
(g) This section shall apply to both voluntary transfers and
transfers resulting from a court order or judicial decree. Nothing in
this subdivision shall be construed as conflicting with paragraph
(1) of subdivision (c) or the general principle that transfers by
reason of death occur at the time of death.
(h) (1) Except as provided in paragraph (2), this section shall
apply to purchases and transfers of real property completed on or
after November 6, 1986, and shall not be effective for any change in
ownership, including a change in ownership arising on the date of a
decedent's death, that occurred prior to that date.
(2) This section shall apply to purchases or transfers of real
property between grandparents and their grandchildren occurring on or
after March 27, 1996, and, with respect to purchases or transfers of
real property between grandparents and their grandchildren, shall
not be effective for any change in ownership, including a change in
ownership arising on the date of a decedent's death, that occurred
prior to that date.
(i) A claim filed under this section is not a public document and
is not subject to public inspection, except that a claim shall be
available for inspection by the transferee and the transferor or
their respective spouse, the transferee's legal representative, the
transferor's legal representative, the trustee of the transferee's
trust, the trustee of the transferor's trust, and the executor or
administrator of the transferee's or transferor's estate.
(j) (1) If the assessor notifies the transferee in writing of
potential eligibility for exclusion from change in ownership under
this section, a certified claim for exclusion shall be filed with the
assessor within 45 days of the date of the notice of potential
eligibility. If a certified claim for exclusion is not filed within
45 days, the assessor may send a second notice of potential
eligibility for exclusion, notifying the transferee that a certified
claim for exclusion has not been received and that reassessment of
the property will commence unless a certified claim for exclusion is
filed within 60 days of the date of the second notice of potential
eligibility. The second notice of potential eligibility shall
indicate whether a certified claim for exclusion that is not filed
within 60 days will be subject to a processing fee as provided in
paragraph (2).
(2) If a certified claim for exclusion is not filed within 60 days
of the date of the second notice of potential eligibility and an
eligible transferee subsequently files a claim and qualifies for the
exclusion, the assessor may, upon authorization by a county board of
supervisors, require an eligible transferee to pay a one-time
processing fee, collected at the time the claim is submitted, and
reimbursed by the assessor if the claim is ineligible. The fee shall
be subject to the provisions of Chapter 12.5 (commencing with Section
54985) of Part 1 of Division 2 of Title 5 of the Government Code and
shall not exceed the amount of the actual and reasonable costs
incurred by the assessor for reassessment work done due to failure to
file the claim for exclusion or one hundred seventy-five dollars
($175), whichever is less.
(3) The failure to file a certified claim for exclusion within the
filing periods specified by this subdivision shall not be construed
to limit any exclusion from being granted pursuant to a claim filed
within the filing periods specified by subdivision (e).
64. (a) Except as provided in subdivision (i) of Section 61 and
subdivisions (c) and (d) of this section, the purchase or transfer of
ownership interests in legal entities, such as corporate stock or
partnership or limited liability company interests, shall not be
deemed to constitute a transfer of the real property of the legal
entity. This subdivision is applicable to the purchase or transfer of
ownership interests in a partnership without regard to whether it is
a continuing or a dissolved partnership.
(b) Any corporate reorganization, where all of the corporations
involved are members of an affiliated group, and that qualifies as a
reorganization under Section 368 of the United States Internal
Revenue Code and that is accepted as a nontaxable event by similar
California statutes, or any transfer of real property among members
of an affiliated group, or any reorganization of farm credit
institutions pursuant to the federal Farm Credit Act of 1971 (Public
Law 92-181), as amended, shall not be a change of ownership. The
taxpayer shall furnish proof, under penalty of perjury, to the
assessor that the transfer meets the requirements of this
subdivision.
For purposes of this subdivision, "affiliated group" means one or
more chains of corporations connected through stock ownership with a
common parent corporation if both of the following conditions are
met:
(1) One hundred percent of the voting stock, exclusive of any
share owned by directors, of each of the corporations, except the
parent corporation, is owned by one or more of the other
corporations.
(2) The common parent corporation owns, directly, 100 percent of
the voting stock, exclusive of any shares owned by directors, of at
least one of the other corporations.
(c) (1) When a corporation, partnership, limited liability
company, other 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, or
ownership interests in other legal entities, including any purchase
or transfer of 50 percent or less of the ownership interest through
which control or a majority ownership interest is obtained, the
purchase or transfer of that stock or other interest shall be a
change of ownership of the real property owned by the corporation,
partnership, limited liability company, or other legal entity in
which the controlling interest is obtained.
(2) On or after January 1, 1996, when an owner of a majority
ownership interest in any partnership obtains all of the remaining
ownership interests in that partnership or otherwise becomes the sole
partner, the purchase or transfer of the minority interests, subject
to the appropriate application of the step-transaction doctrine,
shall not be a change in ownership of the real property owned by the
partnership.
(d) If property is transferred on or after March 1, 1975, to a
legal entity in a transaction excluded from change in ownership by
paragraph (2) of subdivision (a) of Section 62, then the persons
holding ownership interests in that legal entity immediately after
the transfer shall be considered the "original coowners." Whenever
shares or other ownership interests representing cumulatively more
than 50 percent of the total interests in the entity are transferred
by any of the original coowners in one or more transactions, a change
in ownership of that real property owned by the legal entity shall
have occurred, and the property that was previously excluded from
change in ownership under the provisions of paragraph (2) of
subdivision (a) of Section 62 shall be reappraised.
The date of reappraisal shall be the date of the transfer of the
ownership interest representing individually or cumulatively more
than 50 percent of the interests in the entity.
A transfer of shares or other ownership interests that results in
a change in control of a corporation, partnership, limited liability
company, or any other legal entity is subject to reappraisal as
provided in subdivision (c) rather than this subdivision.
(e) To assist in the determination of whether a change of
ownership has occurred under subdivisions (c) and (d), the Franchise
Tax Board shall include a question in substantially the following
form on returns for partnerships, banks, and corporations (except
tax-exempt organizations):
If the corporation (or partnership or limited liability company)
owns real property in California, has cumulatively more than 50
percent of the voting stock (or more than 50 percent of total
interest in both partnership or limited liability company capital and
partnership or limited liability company profits) (1) been
transferred by the corporation (or partnership or limited liability
company) since March 1, 1975, or (2) been acquired by another legal
entity or person during the year (See instructions.)
If the entity answers "yes" to (1) or (2) in the above question,
then the Franchise Tax Board shall furnish the names and addresses of
that entity and of the stock or partnership or limited liability
company ownership interest transferees to the State Board of
Equalization.
65. (a) The creation, transfer, or termination of any joint tenancy
is a change in ownership except as provided in this section, Section
62, and Section 63. Upon a change in ownership of a joint tenancy
interest only the interest or portion which is thereby transferred
from one owner to another owner shall be reappraised.
(b) There shall be no change in ownership upon the creation or
transfer of a joint tenancy interest if the transferor or
transferors, after such creation or transfer, are among the joint
tenants. Upon the creation of a joint tenancy interest described in
this subdivision, the transferor or transferors shall be the
"original transferor or transferors" for purposes of determining the
property to be reappraised on subsequent transfers. The spouses of
original transferors shall also be considered original transferors
within the meaning of this section.
(c) Upon the termination of an interest in any joint tenancy
described in subdivision (b), the entire portion of the property held
by the original transferor or transferors prior to the creation of
the joint tenancy shall be reappraised unless it vests, in whole or
in part, in any remaining original transferor, in which case there
shall be no reappraisal. Upon the termination of the interest of the
last surviving original transferor, there shall be a reappraisal of
the interest then transferred and all other interests in the
properties held by all original transferors which were previously
excluded from reappraisal pursuant to this section.
(d) Upon the termination of an interest held by other than the
original transferor in any joint tenancy described in subdivision
(b), there shall be no reappraisal if the entire interest is
transferred either to an original transferor or to all remaining
joint tenants, provided that one of the remaining joint tenants is an
original transferor.
(e) For purposes of this section, for joint tenancies created on
or before March 1, 1975, it shall be rebuttably presumed that each
joint tenant holding an interest in property as of March 1, 1975,
shall be an "original transferor." This presumption is not applicable
to joint tenancies created after March 1, 1975.
65.1. (a) Except for a joint tenancy interest described in
subdivision (f) of Section 62, when an interest in a portion of real
property is purchased or changes ownership, only the interest or
portion transferred shall be reappraised. A purchase or change in
ownership of an interest with a market value of less than 5 percent
of the value of the total property shall not be reappraised if the
market value of the interest transferred is less than ten thousand
dollars ($10,000) provided, however, that transfers during any one
assessment year shall be cumulated for the purpose of determining the
percentage interests and value transferred.
(b) If a unit or lot within a cooperative housing corporation,
community apartment project, condominium, planned unit development,
shopping center, industrial park, or other residential, commercial,
or industrial land subdivision complex with common areas or
facilities is purchased or changes ownership, then only the unit or
lot transferred and the share in the common area reserved as an
appurtenance of such unit or lot shall be reappraised.
Notwithstanding any other provision of law, the increase in
property taxes resulting from such reappraisal shall be applied by
the owner of such property to the tenant-shareholder, lessee, or
occupant of such individual unit or lot only, and shall not be
prorated among all other units or lots of such property.
66. Change in ownership does not include any of the following:
(a) The creation, vesting, transfer, distribution, or termination
of a participant's or beneficiary's interest in an employee benefit
plan.
(b) Any contribution of real property to an employee benefit plan.
(c) Any acquisition by an employee benefit plan of the stock of
the employer corporation pursuant to which the employee benefit plan
obtains direct or indirect ownership or control of more than 50
percent of the voting stock of the employer corporation.
As used in this section, the terms "employer," "employee benefit
plan," "participant," and "beneficiary" shall be defined as they are
defined in the Employee Retirement Income Security Act of 1974.
67. "Purchased" or "purchase" means a change in ownership for
consideration.
68. For purposes of Section 2 of Article XIII A of the
Constitution, the term "change in ownership" shall not include the
acquisition of real property as a replacement for comparable property
if the person acquiring the real property has been displaced from
property in this state by eminent domain proceedings, by acquisition
by a public entity, or by governmental action which has resulted in a
judgment of inverse condemnation.
The adjusted base year value of the property acquired shall be the
lower of the fair market value of the property acquired or the value
which is the sum of the following:
(a) The adjusted base year value of the property from which the
person was displaced.
(b) The amount, if any, by which the full cash value of the
property acquired exceeds 120 percent of the amount received by the
person for the property from which the person was displaced.
The provisions of this section shall apply to eminent domain
proceedings, acquisitions, or judgments of inverse condemnation after
March 1, 1975, and shall affect only those assessments of that
property which occur after June 8, 1982.
Persons acquiring replacement property between March 1, 1975, and
January 1, 1983, shall request assessment under this section with the
assessor on or before January 1, 1987. Persons acquiring replacement
property on and after January 1, 1983, shall request assessment
within four years of the date the property was acquired by eminent
domain or purchase or the date the judgment of inverse condemnation
becomes final.
Any change in the adjusted base year value of the replacement
property acquired, resulting from the application of the provisions
of this section, shall be deemed to be effective on the first day of
the month following the month in which the property is acquired. The
change in value shall be treated as a change in ownership for the
purpose of placing supplemental assessments on the supplemental roll
pursuant to Chapter 3.5 (commencing with Section 75). The assessor
shall, however, appraise the replacement property acquired in
accordance with the provisions of this section rather than the
provisions of Section 75.10. The provisions of Chapter 3.5 shall be
liberally construed in order to provide the benefits of this section
and Section 2 of Article XIII A of the California Constitution to
affected property owners at the earliest possible date.
69. (a) Notwithstanding any other law, pursuant to Section 2 of
Article XIII A of the Constitution, the base year value of property
that is substantially damaged or destroyed by a disaster, as declared
by the Governor, may be transferred to comparable property within
the same county, which is acquired or newly constructed within five
years after the disaster, including in the case of the Northridge
earthquake, as a replacement for the substantially damaged or
destroyed property. At the time the base year value of the
substantially damaged or destroyed property is transferred to the
replacement property, the substantially damaged or destroyed property
shall be reassessed at its full cash value; however, the
substantially damaged or destroyed property shall retain its base
year value notwithstanding the transfer authorized by this section.
If the owner or owners of substantially damaged or destroyed property
receive property tax relief under this section, that property shall
not be eligible for property tax relief under subdivision (c) of
Section 70 in the event of its reconstruction.
(b) The replacement base year value of the replacement property
acquired shall be determined in accordance with this section.
The assessor shall use the following proced
60. A "change in ownership" means 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.
61. Except as otherwise provided in Section 62, change in
ownership, as defined in Section 60, includes, but is not limited to:
(a) The creation, renewal, sublease, assignment, or other transfer
of the right to produce or extract oil, gas, or other minerals
regardless of the period during which the right may be exercised. The
balance of the property, other than the mineral rights, shall not be
reappraised pursuant to this section.
(b) The creation, renewal, extension, or assignment of a taxable
possessory interest in tax exempt real property for any term. For
purposes of this subdivision:
(1) "Renewal" and "extension" do not include the granting of an
option to renew or extend an existing agreement pursuant to which the
term of possession of the existing agreement would, upon exercise of
the option, be lengthened, whether the option is granted in the
original agreement or subsequent thereto.
(2) Any "renewal" or "extension" of a possessory interest during
the reasonably anticipated term of possession used by the assessor to
value that interest does not cause a change in ownership until the
end of the reasonably anticipated term of possession used by the
assessor to value that interest. At the end of the reasonably
anticipated term of possession used by the assessor, a new base year
value, based on a new reasonably anticipated term of possession,
shall be established for the possessory interest.
(3) "Assignment" of a possessory interest means the transfer of
all rights held by a transferor in a possessory interest.
(c) (1) (A) The creation of a leasehold interest in taxable real
property for a term of 35 years or more (including renewal options).
(B) The termination of a leasehold interest in taxable real
property which had an original term of 35 years or more (including
renewal options).
(C) Any transfer of a leasehold interest having a remaining term
of 35 years or more (including renewal options).
(D) Any transfer of a lessor's interest in taxable real property
subject to a lease with a remaining term (including renewal options)
of less than 35 years.
(2) Only that portion of a property subject to that lease or
transfer shall be considered to have undergone a change in ownership.
(3) For the purpose of this subdivision, for 1979-80 and each year
thereafter, it shall be conclusively presumed that all homes
eligible for the homeowners' exemption, other than manufactured homes
located on rented or leased land and subject to taxation pursuant to
Part 13 (commencing with Section 5800) and floating homes subject to
taxation pursuant to Section 229, that are on leased land have a
renewal option of at least 35 years on the lease of that land,
whether or not in fact that renewal option exists in any contract or
agreement.
(d) (1) (A) A sublease of a taxable possessory interest in
tax-exempt real property for a term, including renewal options, that
exceeds half the length of the remaining term of the leasehold,
including renewal options.
(B) The termination of a sublease of a taxable possessory interest
in tax-exempt property with an original term, including renewal
options, that exceeds half the length of the remaining term of the
leasehold, including renewal options.
(C) Any transfer of a sublessee's interest with a remaining term,
including renewal options, that exceeds half of the remaining term of
the leasehold.
(2) Any transfer of a possessory interest in tax-exempt real
property subject to a sublease with a remaining term, including
renewal options, that does not exceed half the remaining term of the
leasehold, including renewal options.
(e) The creation, transfer, or termination of any joint tenancy
interest, except as provided in subdivision (f) of Section 62, and in
Section 63 and Section 65.
(f) The creation, transfer, or termination of any
tenancy-in-common interest, except as provided in subdivision (a) of
Section 62 and in Section 63.
(g) Any vesting of the right to possession or enjoyment of a
remainder or reversionary interest that occurs upon the termination
of a life estate or other similar precedent property interest, except
as provided in subdivision (d) of Section 62 and in Section 63.
(h) Any interests in real property that vest in persons other than
the trustor (or, pursuant to Section 63, his or her spouse) when a
revocable trust becomes irrevocable.
(i) The transfer of stock of a cooperative housing corporation,
vested with legal title to real property that conveys to the
transferee the exclusive right to occupancy and possession of that
property, or a portion thereof. A "cooperative housing corporation"
is a real estate development in which membership in the corporation,
by stock ownership, is coupled with the exclusive right to possess a
portion of the real property.
(j) The transfer of any interest in real property between a
corporation, partnership, or other legal entity and a shareholder,
partner, or any other person.
62. Change in ownership shall not include:
(a) (1) Any transfer between coowners that results in a change in
the method of holding title to the real property transferred without
changing the proportional interests of the coowners in that real
property, such as a partition of a tenancy in common.
(2) Any transfer between an individual or individuals and a legal
entity or between legal entities, such as a cotenancy to a
partnership, a partnership to a corporation, or a trust to a
cotenancy, that results solely in a change in the method of holding
title to the real property and in which proportional ownership
interests of the transferors and transferees, whether represented by
stock, partnership interest, or otherwise, in each and every piece of
real property transferred, remain the same after the transfer. The
provisions of this paragraph shall not apply to transfers also
excluded from change in ownership under the provisions of subdivision
(b) of Section 64.
(b) Any transfer for the purpose of perfecting title to the
property.
(c) (1) The creation, assignment, termination, or reconveyance of
a security interest; or (2) the substitution of a trustee under a
security instrument.
(d) Any transfer by the trustor, or by the trustor's spouse or
registered domestic partner, or by both, into a trust for so long as
(1) the transferor is the present beneficiary of the trust, or (2)
the trust is revocable; or any transfer by a trustee of such a trust
described in either clause (1) or (2) back to the trustor; or, any
creation or termination of a trust in which the trustor retains the
reversion and in which the interest of others does not exceed 12
years duration.
(e) Any transfer by an instrument whose terms reserve to the
transferor an estate for years or an estate for life. However, the
termination of such an estate for years or estate for life shall
constitute a change in ownership, except as provided in subdivision
(d) and in Section 63.
(f) The creation or transfer of a joint tenancy interest if the
transferor, after the creation or transfer, is one of the joint
tenants as provided in subdivision (b) of Section 65.
(g) Any transfer of a lessor's interest in taxable real property
subject to a lease with a remaining term (including renewal options)
of 35 years or more. For the purpose of this subdivision, for 1979-80
and each year thereafter, it shall be conclusively presumed that all
homes eligible for the homeowners' exemption, other than
manufactured homes located on rented or leased land and subject to
taxation pursuant to Part 13 (commencing with Section 5800) and
floating homes subject to taxation pursuant to Section 229, that are
on leased land have a renewal option of at least 35 years on the
lease of that land, whether or not in fact that renewal option exists
in any contract or agreement.
(h) Any purchase, redemption, or other transfer of the shares or
units of participation of a group trust, pooled fund, common trust
fund, or other collective investment fund established by a financial
institution.
(i) Any transfer of stock or membership certificate in a housing
cooperative that was financed under one mortgage, provided that
mortgage was insured under Section 213, 221(d)(3), 221(d)(4), or 236
of the National Housing Act, as amended, or that housing cooperative
was financed or assisted pursuant to Section 514, 515, or 516 of the
Housing Act of 1949 or Section 202 of the Housing Act of 1959, or the
housing cooperative was financed by a direct loan from the
California Housing Finance Agency, and provided that the regulatory
and occupancy agreements were approved by the governmental lender or
insurer, and provided that the transfer is to the housing cooperative
or to a person or family qualifying for purchase by reason of
limited income. Any subsequent transfer from the housing cooperative
to a person or family not eligible for state or federal assistance in
reduction of monthly carrying charges or interest reduction
assistance by reason of the income level of that person or family
shall constitute a change of ownership.
(j) Any transfer during the period March 1, 1975, to March 1,
1981, between coowners in any property that was held by them as
coowners for all or part of that period, and which was eligible for a
homeowner's exemption during the period of the coownership,
notwithstanding any other provision of this chapter. Any transferee
whose interest was revalued in contravention of the provisions of
this subdivision shall obtain a reversal of that revaluation with
respect to the 1980-81 assessment year and thereafter, upon
application to the county assessor of the county in which the
property is located filed on or before March 26, 1982. No refunds
shall be made under this subdivision for any assessment year prior to
the 1980-81 fiscal year.
(k) Any transfer of property or an interest therein between a
corporation sole, a religious corporation, a public benefit
corporation, and a holding corporation as defined in Section 23701h
holding title for the benefit of any of these corporations, or any
combination thereof (including any transfer from one entity to the
same type of entity), provided that both the transferee and
transferor are regulated by laws, rules, regulations, or canons of
the same religious denomination.
(l) Any transfer, that would otherwise be a transfer subject to
reappraisal under this chapter, between or among the same parties for
the purpose of correcting or reforming a deed to express the true
intentions of the parties, provided that the original relationship
between the grantor and grantee is not changed.
(m) Any intrafamily transfer of an eligible dwelling unit from a
parent or parents or legal guardian or guardians to a minor child or
children or between or among minor siblings as a result of a court
order or judicial decree due to the death of the parent or parents.
As used in this subdivision, "eligible dwelling unit" means the
dwelling unit that was the principal place of residence of the minor
child or children prior to the transfer and remains the principal
place of residence of the minor child or children after the transfer.
(n) Any transfer of an eligible dwelling unit, whether by will,
devise, or inheritance, from a parent or parents to a child or
children, or from a guardian or guardians to a ward or wards, if the
child, children, ward, or wards have been disabled, as provided in
subdivision (e) of Section 12304 of the Welfare and Institutions
Code, for at least five years preceding the transfer and if the
child, children, ward, or wards have adjusted gross income that, when
combined with the adjusted gross income of a spouse or spouses,
parent or parents, and child or children, does not exceed twenty
thousand dollars ($20,000) in the year in which the transfer occurs.
As used in this subdivision, "child" or "ward" includes a minor or an
adult. As used in this subdivision, "eligible dwelling unit" means
the dwelling unit that was the principal place of residence of the
child or children, or ward or wards for at least five years preceding
the transfer and remains the principal place of residence of the
child or children, or ward or wards after the transfer. Any
transferee whose property was reassessed in contravention of the
provisions of this subdivision for the 1984-85 assessment year shall
obtain a reversal of that reassessment upon application to the county
assessor of the county in which the property is located. Application
by the transferee shall be made to the assessor no later than 30
days after the later of either the transferee's receipt of notice of
reassessment pursuant to Section 75.31 or the end of the 1984-85
fiscal year.
(o) Any transfer of a possessory interest in tax-exempt real
property subject to a sublease with a remaining term, including
renewal options, that exceeds half the length of the remaining term
of the leasehold, including renewal options.
(p) (1) Commencing on January 1, 2000, any transfer between
registered domestic partners, as defined in Section 297 of the Family
Code, including, but not limited to:
(A) Transfers to a trustee for the beneficial use of a registered
domestic partner, or the surviving registered domestic partner of a
deceased transferor, or by a trustee of such a trust to the
registered domestic partner of the trustor.
(B) Transfers that take effect upon the death of a registered
domestic partner.
(C) Transfers to a registered domestic partner or former
registered domestic partner in connection with a property settlement
agreement or decree of dissolution of a registered domestic
partnership or legal separation.
(D) The creation, transfer, or termination, solely between
registered domestic partners, of any coowner's interest.
(E) The distribution of a legal entity's property to a registered
domestic partner or former registered domestic partner in exchange
for the interest of the registered domestic partner in the legal
entity in connection with a property settlement agreement or a decree
of dissolution of a registered domestic partnership or legal
separation.
(2) Any transferee whose property was reassessed in contravention
of the provisions of this subdivision for a transfer occurring
between January 1, 2000, and January 1, 2006, shall obtain a reversal
of that reassessment upon application to the county assessor of the
county in which the property is located. Application by the
transferee shall be made to the assessor no later than June 30, 2009.
A county may charge a fee for its costs related to the application
and reassessment reversal in an amount that does not exceed the
actual costs incurred. This paragraph shall be liberally construed to
provide the benefits of this subdivision and Article XIII A of the
California Constitution to registered domestic partners.
(A) After consultation with the California Assessors' Association,
the State Board of Equalization shall prescribe the form for
claiming the reassessment reversal described in paragraph (2). The
claim form shall be entitled "Claim for Reassessment Reversal for
Registered Domestic Partners." The claim shall state on its face that
a "certificate of registered domestic partnership" is available upon
request from the California Secretary of State.
(B) The information on the claim shall include a description of
the property, the parties to the transfer of interest in the
property, the date of the transfer of interest in the property, and a
statement that the transferee registered domestic partner and the
transferor registered domestic partner were, on the date of transfer,
in a registered domestic partnership as defined in Section 297 of
the Family Code.
(C) The claimant shall declare that the information provided on
the form is true, correct, and complete to the best of his or her
knowledge and belief.
(D) The claimant shall provide with the completed claim the
"Certificate of Registered Domestic Partnership," or photocopy
thereof, naming the transferee and transferor as registered domestic
partners and reflecting the creation of the registered domestic
partnership on a date prior to, or concurrent with, the date of the
transfer for which a reassessment reversal is requested.
(E) Any reassessment reversal granted pursuant to a claim shall
apply commencing with the lien date of the assessment year, as
defined in Section 118, in which the claim is filed. No refunds shall
be made under this paragraph for any prior assessment year.
(F) Under any reassessment reversal granted pursuant to that
claim, the adjusted full cash value of the subject real property in
the assessment year described in subparagraph (E) shall be the
adjusted base year value of the subject real property in the
assessment year in which the excluded purchase or transfer took
place, factored to the assessment year described in subparagraph (E)
for both of the following:
(i) Inflation as annually determined in accordance with paragraph
(1) of subdivision (a) of Section 51.
(ii) Any subsequent new construction occurring with respect to the
subject real property.
62.1. (a) Change in ownership shall not include the following:
(1) Any transfer, on or after January 1, 1985, of a mobilehome
park to a nonprofit corporation, stock cooperative corporation,
limited equity stock cooperative, or other entity formed by the
tenants of a mobilehome park, for the purpose of purchasing the
mobilehome park, provided that, with respect to any transfer of a
mobilehome park on or after January 1, 1989, subject to this
paragraph, the individual tenants who were renting at least 51
percent of the spaces in the mobilehome park prior to the transfer
participate in the transaction through the ownership of an aggregate
of at least 51 percent of the voting stock of, or other ownership or
membership interests in, the entity which acquires the park. If, on
or after January 1, 1998, a park is acquired by an entity that did
not attain an initial tenant participation level of at least 51
percent on the date of the transfer, the entity shall have up to one
year after the date of the transfer to attain a tenant participation
level of at least 51 percent. If an individual tenant notifies the
county assessor of the intention to comply with the conditions set
forth in the preceding sentence, the mobilehome park may not be
reappraised by the assessor during that period. However, if a tenant
participation level of at least 51 percent is not attained within the
one-year period, the county assessor shall thereafter levy escape
assessments for the mobilehome park transfer.
(2) Any transfer or transfers on or after January 1, 1985, of
rental spaces in a mobilehome park to the individual tenants of the
rental spaces, provided that (1) at least 51 percent of the rental
spaces are purchased by individual tenants renting their spaces prior
to purchase, and (2) the individual tenants of these spaces form,
within one year after the first purchase of a rental space by an
individual tenant, a resident organization as described in
subdivision (l) of Section 50781 of the Health and Safety Code, to
operate and maintain the park. If, on or after January 1, 1985, an
individual tenant or tenants notify the county assessor of the
intention to comply with the conditions set forth in the preceding
sentence, any mobilehome park rental space that is purchased by an
individual tenant in that mobilehome park during that period shall
not be reappraised by the assessor. However, if all of the conditions
set forth in the first sentence of this paragraph are not satisfied,
the county assessor shall thereafter levy escape assessments for the
spaces so transferred. This paragraph shall apply only to those
rental mobilehome parks that have been in operation for five years or
more.
(b) (1) If the transfer of a mobilehome park has been excluded
from a change in ownership pursuant to paragraph (1) of subdivision
(a) and the park has not been converted to condominium, stock
cooperative ownership, or limited equity cooperative ownership, any
transfer on or after January 1, 1989, of shares of the voting stock
of, or other ownership or membership interests in, the entity that
acquired the park in accordance with paragraph (1) of subdivision (a)
shall be a change in ownership of a pro rata portion of the real
property of the park unless the transfer is for the purpose of
converting the park to condominium, stock cooperative ownership, or
limited equity cooperative ownership or is excluded from change in
ownership by Section 62, 63, or 63.1.
(2) For the purposes of this subdivision, "pro rata portion of the
real property" means the total real property of the mobilehome park
multiplied by a fraction consisting of the number of shares of voting
stock, or other ownership or membership interests, transferred
divided by the total number of outstanding issued or unissued shares
of voting stock of, or other ownership or membership interests in,
the entity that acquired the park in accordance with paragraph (1) of
subdivision (a).
(3) Any pro rata portion or portions of real property that changed
ownership pursuant to this subdivision may be separately assessed as
provided in Section 2188.10.
(4) (A) Notwithstanding any other provision of law, after an
exclusion under subdivision (a), the assessor may not levy any escape
or supplemental assessment with respect to any change in ownership
of a pro rata portion of the real property of the mobilehome park
that occurred between January 1, 1989, and January 1, 2002, and for
which the assessor did not, prior to January 1, 2000, levy any
assessments. However, commencing with the January 1, 2002, lien date,
the assessor shall correct the base year value of the pro rata
portion of the real property of the park to properly reflect these
changes in ownership. A mobilehome park shall provide information
requested by the assessor that is necessary to correct the base year
value of the property for purposes of this paragraph.
(B) When an assessor corrects the base year value of the real
property of the park pursuant to subparagraph (A), the assessor shall
notify parks that residents may be eligible for property tax
assistance programs offered by either the Controller or the Franchise
Tax Board for senior citizens, or blind or disabled persons.
(C) Any outstanding taxes that were levied between January 1,
2000, and January 1, 2002, as a result of a pro rata change in
ownership as described in subparagraph (A) shall be canceled.
However, there shall be no refund of taxes, as so levied, that were
paid prior to January 1, 2002.
(5) A mobilehome park that does not utilize recorded deeds to
transfer ownership interest in the spaces or lots shall file, by
February 1 of each year, a report with the county assessor's office
containing all of the following information:
(A) The full name and mailing address of each owner, stockholder,
or holder of an ownership interest in the mobilehome park.
(B) The situs address, including space number, of each unit.
(C) The date that the ownership interest was acquired.
(D) If the unit is a manufactured home, the Department of Housing
and Community Development decal number or serial number, or both, and
whether the manufactured home is subject to the vehicle license fee
or the local property tax.
(6) Within 30 days of a change in ownership, the new resident
owner or other purchaser or transferee of a manufactured home within
a mobilehome park that does not utilize recorded deeds to transfer
ownership interest in the spaces or lots shall file a change in
ownership statement described in either Section 480 or 480.2.
(7) Failure to comply with the reporting requirement described in
paragraph (5) shall result in a penalty pursuant to Section 482.
(c) It is the intent of the Legislature that, in order to
facilitate affordable conversions of mobilehome parks to tenant
ownership, paragraph (1) of subdivision (a) apply to all bona fide
transfers of rental mobilehome parks to tenant ownership, including,
but not limited to, those parks converted to tenant ownership as a
nonprofit corporation made on or after January 1, 1985.
62.2. (a) (1) Subject to paragraph (2), change in ownership shall
not include any transfer on or after January 1, 1989, of a mobilehome
park to a nonprofit corporation, stock cooperative corporation,
tenant-in-common ownership group, or any other entity, including a
governmental entity, if, within 18 months after the transfer, the
mobilehome park is transferred by that corporation or other entity,
including a governmental entity, to a nonprofit corporation, stock
cooperative corporation, or other entity formed by the tenants of the
mobilehome park in a transaction that is excluded from change in
ownership by paragraph (1) of subdivision (a) of Section 62.1, or at
least 51 percent of the mobilehome park rental spaces are transferred
to the individual tenants of those spaces in a transaction excluded
from change in ownership by paragraph (2) subdivision (a) of Section
62.1.
(2) (A) Any mobilehome park that was initially transferred on or
after January 1, 1993, to a nonprofit corporation, stock cooperative
corporation, tenant-in-common ownership group, or any other entity,
including a governmental entity, that is subsequently transferred
within 36 months of that initial transfer as provided in paragraph
(1), shall qualify for the exclusion from change in ownership
pursuant to this subdivision. In applying the 36-month limit
specified in the preceding sentence to the subsequent transfer to an
individual tenant, as provided in paragraph (1), of a rental space in
a mobilehome park that was initially transferred on or after January
1, 1995, to a nonprofit corporation, stock cooperative corporation,
tenant-in-common ownership group, or any other entity, the execution
of a purchase contract and the opening of a bona fide purchase escrow
with a licensed escrow agent shall be deemed to transfer the rental
space in compliance with that 36-month limit, provided that both of
the following conditions are met:
(i) The escrow is opened prior to the expiration of the 36-month
time period.
(ii) The escrow closes on a date no later than six months after
the end of the 36-month time period.
(B) A mobilehome park located within a disaster area that was
initially transferred on or after October 1, 1991, and before October
31, 1991, to a nonprofit corporation, stock cooperative corporation,
or other entity, that is subsequently transferred within 76 months
of that initial transfer as provided in paragraph (1), shall qualify
for the exclusion from change in ownership pursuant to this
subdivision. For purposes of the preceding sentence, "mobilehome park
located within a disaster area" means a mobilehome park that is
located in the County of Los Angeles in an area for which both of the
following apply:
(i) The Governor, as a result of the January 17, 1994, Northridge
earthquake, has declared the area to be in a state of disaster and
certified the area's need for assistance.
(ii) The President of the United States has, pursuant to federal
law, determined the area to be in a state of major disaster.
The exclusion from change in ownership pursuant to this
subdivision of a mobilehome park located within a disaster area shall
be effective commencing with the 1995-96 fiscal year, and shall not
require any affected county to refund any amount of property tax
levied with respect to a mobilehome park for the period from October
1, 1991, to June 30, 1995, inclusive.
(b) With respect to any transfer of any mobilehome park on or
after January 1, 1989, subject to this section, the individual
tenants who are renting at least a majority of the spaces in the
mobilehome park prior to the transfer to the entity formed by the
tenants for the acquisition of the park shall participate in the
transaction through the ownership of an aggregate of at least a
majority of voting stock of, or other ownership or membership
interest in, that entity.
(c) This section shall not apply if any fees charged the
mobilehome park tenants in connection with either the first or second
transfer exceed 15 percent of the total consideration paid for the
mobilehome park in the first transfer, plus any accrued interest and
taxes.
(d) If the assessor is notified in writing at the time the
transferee files the change in ownership statement that the
transferee intends to qualify the transfer under this section, the
mobilehome park shall not be reappraised pending satisfaction of the
relevant conditions set forth in this section for exclusion from
change in ownership. If the transferee fails to satisfy those
conditions, the assessor shall reappraise the mobilehome park and
levy escape assessments or supplemental assessments, as appropriate.
For escape or supplemental assessments levied pursuant to the
preceding sentence with respect to a mobilehome park located within a
disaster area, both of the following conditions shall apply:
(1) The limitations period shall be that period specified in
either subdivision (b) of Section 532 or subdivision (d) of Section
75.11, as applicable.
(2) For purposes of applying the limitations periods specified in
paragraph (1), the expiration date of the 76-month period specified
in subdivision (a) shall be deemed to be the date upon which the
initial transfer of the mobilehome park was reported to the assessor.
62.11. Change in ownership does not include the recordation of a
certificate of sale pursuant to subdivision (a) of Section 729.040 of
the Code of Civil Procedure, relating to property sold subject to
the right of redemption, for the period in which the right of
redemption exists.
63. Notwithstanding any other provision in this chapter, a change
of ownership shall not include any interspousal transfer, including,
but not limited to:
(a) Transfers to a trustee for the beneficial use of a spouse, or
the surviving spouse of a deceased transferor, or by a trustee of
such a trust to the spouse of the trustor,
(b) Transfers which take effect upon the death of a spouse,
(c) Transfers to a spouse or former spouse in connection with a
property settlement agreement or decree of dissolution of a marriage
or legal separation, or
(d) The creation, transfer, or termination, solely between
spouses, of any coowner's interest.
(e) The distribution of a legal entity's property to a spouse or
former spouse in exchange for the interest of such spouse in the
legal entity in connection with a property settlement agreement or a
decree of dissolution of a marriage or legal separation.
63.1. (a) Notwithstanding any other provision of this chapter, a
change in ownership shall not include the following purchases or
transfers for which a claim is filed pursuant to this section:
(1) (A) The purchase or transfer of real property which is the
principal residence of an eligible transferor in the case of a
purchase or transfer between parents and their children.
(B) A purchase or transfer of a principal residence from a foster
child to the child's biological parent shall not be excluded under
subparagraph (A) if the transferor child received that principal
residence, or interest therein, from a foster parent through a
purchase or transfer that was excluded under subparagraph (A).
(2) The purchase or transfer of the first one million dollars
($1,000,000) of full cash value of all other real property of an
eligible transferor in the case of a purchase or transfer between
parents and their children.
(3) (A) Subject to subparagraph (B), the purchase or transfer of
real property described in paragraphs (1) and (2) of subdivision (a)
occurring on or after March 27, 1996, between grandparents and their
grandchild or grandchildren, if all of the parents of that grandchild
or those grandchildren, who qualify as the children of the
grandparents, are deceased as of the date of purchase or transfer.
Notwithstanding any other provision of law, for the lien date for the
2006-07 fiscal year and each fiscal year thereafter, in determining
whether "all of the parents of that grandchild or those
grandchildren, who qualify as the children of the grandparents, are
deceased as of the date of purchase or transfer," a son-in-law or
daughter-in-law of the grandparent that is a stepparent to the
grandchild need not be deceased on the date of the transfer.
(B) A purchase or transfer of a principal residence shall not be
excluded pursuant to subparagraph (A) if the transferee grandchild or
grandchildren also received a principal residence, or interest
therein, through another purchase or transfer that was excludable
pursuant to paragraph (1) of subdivision (a). The full cash value of
any real property, other than a principal residence, that was
transferred to the grandchild or grandchildren pursuant to a purchase
or transfer that was excludable pursuant to paragraph (2) of
subdivision (a) and the full cash value of a principal residence that
fails to qualify for exclusion as a result of the preceding sentence
shall be included in applying, for purposes of paragraph (2) of
subdivision (a), the one million dollar ($1,000,000) full cash value
limit specified in paragraph (2) of subdivision (a).
(b) (1) For purposes of paragraph (1) of subdivision (a),
"principal residence" means a dwelling that is eligible for a
homeowners' exemption or a disabled veterans' exemption as a result
of the transferor's ownership and occupation of the dwelling.
"Principal residence" includes only that portion of the land
underlying the residence that consists of an area of reasonable size
that is used as a site for the residence.
(2) For purposes of paragraph (2) of subdivision (a), the
one-million-dollar ($1,000,000) exclusion shall apply separately to
each eligible transferor with respect to all purchases by and
transfers to eligible transferees on and after November 6, 1986, of
real property, other than the principal residence, of that eligible
transferor. The exclusion shall not apply to any property in which
the eligible transferor's interest was received through a transfer,
or transfers, excluded from change in ownership by the provisions of
either subdivision (f) of Section 62 or subdivision (b) of Section
65, unless the transferor qualifies as an original transferor under
subdivision (b) of Section 65. In the case of any purchase or
transfer subject to this paragraph involving two or more eligible
transferors, the transferors may elect to combine their separate
one-million-dollar ($1,000,000) exclusions and, upon making that
election, the combined amount of their separate exclusions shall
apply to any property jointly sold or transferred by the electing
transferors, provided that in no case shall the amount of full cash
value of real property of any one eligible transferor excluded under
this election exceed the amount of the transferor's separate unused
exclusion on the date of the joint sale or transfer.
(c) As used in this section:
(1) "Purchase or transfer between parents and their children"
means either a transfer from a parent or parents to a child or
children of the parent or parents or a transfer from a child or
children to a parent or parents of the child or children. For
purposes of this section, the date of any transfer between parents
and their children under a will or intestate succession shall be the
date of the decedent's death, if the decedent died on or after
November 6, 1986.
(2) "Purchase or transfer of real property between grandparents
and their grandchild or grandchildren" means a purchase or transfer
on or after March 27, 1996, from a grandparent or grandparents to a
grandchild or grandchildren if all of the parents of that grandchild
or those grandchildren who qualify as the children of the
grandparents are deceased as of the date of the transfer. For
purposes of this section, the date of any transfer between
grandparents and their grandchildren under a will or by intestate
succession shall be the date of the decedent's death. Notwithstanding
any other provision of law, for the lien date for the 2006-07 fiscal
year and each fiscal year thereafter, in determining whether "all of
the parents of that grandchild or those grandchildren, who qualify
as the children of the grandparents, are deceased as of the date of
purchase or transfer," a son-in-law or daughter-in-law of the
grandparent that is a stepparent to the grandchild need not be
deceased on the date of the transfer.
(3) "Children" means any of the following:
(A) Any child born of the parent or parents, except a child, as
defined in subparagraph (D), who has been adopted by another person
or persons.
(B) Any stepchild of the parent or parents and the spouse of that
stepchild while the relationship of stepparent and stepchild exists.
For purposes of this paragraph, the relationship of stepparent and
stepchild shall be deemed to exist until the marriage on which the
relationship is based is terminated by divorce, or, if the
relationship is terminated by death, until the remarriage of the
surviving stepparent.
(C) Any son-in-law or daughter-in-law of the parent or parents.
For the purposes of this paragraph, the relationship of parent and
son-in-law or daughter-in-law shall be deemed to exist until the
marriage on which the relationship is based is terminated by divorce,
or, if the relationship is terminated by death, until the remarriage
of the surviving son-in-law or daughter-in-law.
(D) Any child adopted by the parent or parents pursuant to
statute, other than an individual adopted after reaching the age of
18 years.
(E) Any foster child of a state-licensed foster parent, if that
child was not, because of a legal barrier, adopted by the foster
parent or foster parents before the child aged out of the foster care
system. For purposes of this paragraph, the relationship between a
foster child and foster parent shall be deemed to exist until
terminated by death. However, for purposes of a transfer that occurs
on the date of death, the relationship shall be deemed to exist on
the date of death.
(4) "Grandchild" or "grandchildren" means any child or children of
the child or children of the grandparent or grandparents.
(5) "Full cash value" means full cash value, as defined in Section
2 of Article XIII A of the California Constitution and Section
110.1, with any adjustments authorized by those sections, and the
full value of any new construction in progress, determined as of the
date immediately prior to the date of a purchase by or transfer to an
eligible transferee of real property subject to this section.
(6) "Eligible transferor" means a grandparent, parent, or child of
an eligible transferee.
(7) "Eligible transferee" means a parent, child, or grandchild of
an eligible transferor.
(8) "Real property" means real property as defined in Section 104.
Real property does not include any interest in a legal entity.
(9) "Transfer" includes, and is not limited to, any transfer of
the present beneficial ownership of property from an eligible
transferor to an eligible transferee through the medium of an inter
vivos or testamentary trust.
(10) "Social security number" also includes a taxpayer
identification number issued by the Internal Revenue Service in the
case in which the taxpayer is a foreign national who cannot obtain a
social security number.
(d) (1) The exclusions provided for in subdivision (a) shall not
be allowed unless the eligible transferee, the transferee's legal
representative, the trustee of the transferee's trust, or the
executor or administrator of the transferee's estate files a claim
with the assessor for the exclusion sought and furnishes to the
assessor each of the following:
(A) A written certification by the transferee, the transferee's
legal representative, the trustee of the transferee's trust, or the
executor or administrator of the transferee's estate, signed and made
under penalty of perjury that the transferee is a parent, child, or
grandchild of the transferor and that the transferor is his or her
parent, child, or grandparent. In the case of a
grandparent-grandchild transfer, the written certification shall also
include a certification that all the parents of the grandchild or
grandchildren who qualify as children of the grandparents were
deceased as of the date of the purchase or transfer and that the
grandchild or grandchildren did or did not receive a principal
residence excludable under paragraph (1) of subdivision (a) from the
deceased parents, and that the grandchild or grandchildren did or did
not receive real property other than a principal residence
excludable under paragraph (2) of subdivision (a) from the deceased
parents. The claimant shall provide legal substantiation of any
matter certified pursuant to this subparagraph at the request of the
county assessor.
(B) A written certification by the transferor, the transferor's
legal representative, the trustee of the transferor's trust, or the
executor or administrator of the transferor's estate, signed and made
under penalty of perjury that the transferor is a grandparent,
parent, or child of the transferee and that the transferor is seeking
the exclusion under this section and will not file a claim to
transfer the base year value of the property under Section 69.5.
(C) A written certification shall also include either or both of
the following:
(i) If the purchase or transfer of real property includes the
purchase or transfer of residential real property, a certification
that the residential real property is or is not the transferor's
principal residence.
(ii) If the purchase or transfer of real property includes the
purchase or transfer of real property other than the transferor's
principal residence, a certification that other real property of the
transferor that is subject to this section has or has not been
previously sold or transferred to an eligible transferee, the total
amount of full cash value, as defined in subdivision (c), of any real
property subject to this section that has been previously sold or
transferred by that transferor to eligible transferees, the location
of that real property, the social security number of each eligible
transferor, and the names of the eligible transferees of that
property.
(D) If there are multiple transferees, the certification and
signature may be made by any one of the transferees, if both of the
following conditions are met:
(i) The transferee has actual knowledge that, and the
certification signed by the transferee states that, all of the
transferees are eligible transferees within the meaning of this
section.
(ii) The certification is signed by the transferee as a true
statement made under penalty of perjury.
(E) In the case of a transfer between a foster parent and foster
child, the claim filed with the assessor shall include a certified
copy of the court decision regarding the foster child status of the
individual and a certified statement from the appropriate county
agency stating that the foster child was not, because of a legal
barrier, adopted by the foster parent or foster parents. Upon a
request by the county assessor, the claimant also shall provide to
the assessor legal substantiation of any matter certified under this
subparagraph.
(2) If the full cash value of the real property purchased by or
transferred to the transferee exceeds the permissible exclusion of
the transferor or the combined permissible exclusion of the
transferors, in the case of a purchase or transfer from two or more
joint transferors, taking into account any previous purchases by or
transfers to an eligible transferee from the same transferor or
transferors, the transferee shall specify in his or her claim the
amount and the allocation of the exclusion he or she is seeking.
Within any appraisal unit, as determined in accordance with
subdivision (d) of Section 51 by the assessor of the county in which
the real property is located, the exclusion shall be applied only on
a pro rata basis, however, and shall not be applied to a selected
portion or portions of the appraisal unit.
(e) (1) The State Board of Equalization shall design the form for
claiming eligibility. Except as provided in paragraph (2), any claim
under this section shall be filed:
(A) For transfers of real property between parents and their
children occurring prior to September 30, 1990, within three years
after the date of the purchase or transfer of real property for which
the claim is filed.
(B) For transfers of real property between parents and their
children occurring on or after September 30, 1990, and for the
purchase or transfer of real property between grandparents and their
grandchildren occurring on or after March 27, 1996, within three
years after the date of the purchase or transfer of real property for
which the claim is filed, or prior to transfer of the real property
to a third party, whichever is earlier.
(C) Notwithstanding subparagraphs (A) and (B), a claim shall be
deemed to be timely filed if it is filed within six months after the
date of mailing of a notice of supplemental or escape assessment,
issued as a result of the purchase or transfer of real property for
which the claim is filed.
(2) In the case in which the real property subject to purchase or
transfer has not been transferred to a third party, a claim for
exclusion under this section that is filed subsequent to the
expiration of the filing periods set forth in paragraph (1) shall be
considered by the assessor, subject to all of the following
conditions:
(A) Any exclusion granted pursuant to that claim shall apply
commencing with the lien date of the assessment year in which the
claim is filed.
(B) Under any exclusion granted pursuant to that claim, the
adjusted full cash value of the subject real property in the
assessment year described in subparagraph (A) shall be the adjusted
base year value of the subject real property in the assessment year
in which the excluded purchase or transfer took place, factored to
the assessment year described in subparagraph (A) for both of the
following:
(i) Inflation as annually determined in accordance with paragraph
(1) of subdivision (a) of Section 51.
(ii) Any subsequent new construction occurring with respect to the
subject real property.
(3) (A) Unless otherwise expressly provided, the provisions of
this subdivision shall apply to any purchase or transfer of real
property that occurred on or after November 6, 1986.
(B) Paragraph (2) shall apply to purchases or transfers between
parents and their children that occurred on or after November 6,
1986, and to purchases or transfers between grandparents and their
grandchildren that occurred on or after March 27, 1996.
(4) For purposes of this subdivision, a transfer of real property
to a parent or child of the transferor shall not be considered a
transfer to a third party.
(f) The assessor may report quarterly to the State Board of
Equalization all purchases or transfers, other than purchases or
transfers involving a principal residence, for which a claim for
exclusion is made pursuant to subdivision (d). Each report shall
contain the assessor's parcel number for each parcel for which the
exclusion is claimed, the amount of each exclusion claimed, the
social security number of each eligible transferor, and any other
information the board may require in order to monitor the
one-million-dollar ($1,000,000) limitation in paragraph (2) of
subdivision (a). In recognition of the state and local interests
served by the action made optional in this subdivision, the
Legislature encourages the assessor to continue taking the action
formerly mandated by this subdivision.
(g) This section shall apply to both voluntary transfers and
transfers resulting from a court order or judicial decree. Nothing in
this subdivision shall be construed as conflicting with paragraph
(1) of subdivision (c) or the general principle that transfers by
reason of death occur at the time of death.
(h) (1) Except as provided in paragraph (2), this section shall
apply to purchases and transfers of real property completed on or
after November 6, 1986, and shall not be effective for any change in
ownership, including a change in ownership arising on the date of a
decedent's death, that occurred prior to that date.
(2) This section shall apply to purchases or transfers of real
property between grandparents and their grandchildren occurring on or
after March 27, 1996, and, with respect to purchases or transfers of
real property between grandparents and their grandchildren, shall
not be effective for any change in ownership, including a change in
ownership arising on the date of a decedent's death, that occurred
prior to that date.
(i) A claim filed under this section is not a public document and
is not subject to public inspection, except that a claim shall be
available for inspection by the transferee and the transferor or
their respective spouse, the transferee's legal representative, the
transferor's legal representative, the trustee of the transferee's
trust, the trustee of the transferor's trust, and the executor or
administrator of the transferee's or transferor's estate.
(j) (1) If the assessor notifies the transferee in writing of
potential eligibility for exclusion from change in ownership under
this section, a certified claim for exclusion shall be filed with the
assessor within 45 days of the date of the notice of potential
eligibility. If a certified claim for exclusion is not filed within
45 days, the assessor may send a second notice of potential
eligibility for exclusion, notifying the transferee that a certified
claim for exclusion has not been received and that reassessment of
the property will commence unless a certified claim for exclusion is
filed within 60 days of the date of the second notice of potential
eligibility. The second notice of potential eligibility shall
indicate whether a certified claim for exclusion that is not filed
within 60 days will be subject to a processing fee as provided in
paragraph (2).
(2) If a certified claim for exclusion is not filed within 60 days
of the date of the second notice of potential eligibility and an
eligible transferee subsequently files a claim and qualifies for the
exclusion, the assessor may, upon authorization by a county board of
supervisors, require an eligible transferee to pay a one-time
processing fee, collected at the time the claim is submitted, and
reimbursed by the assessor if the claim is ineligible. The fee shall
be subject to the provisions of Chapter 12.5 (commencing with Section
54985) of Part 1 of Division 2 of Title 5 of the Government Code and
shall not exceed the amount of the actual and reasonable costs
incurred by the assessor for reassessment work done due to failure to
file the claim for exclusion or one hundred seventy-five dollars
($175), whichever is less.
(3) The failure to file a certified claim for exclusion within the
filing periods specified by this subdivision shall not be construed
to limit any exclusion from being granted pursuant to a claim filed
within the filing periods specified by subdivision (e).
64. (a) Except as provided in subdivision (i) of Section 61 and
subdivisions (c) and (d) of this section, the purchase or transfer of
ownership interests in legal entities, such as corporate stock or
partnership or limited liability company interests, shall not be
deemed to constitute a transfer of the real property of the legal
entity. This subdivision is applicable to the purchase or transfer of
ownership interests in a partnership without regard to whether it is
a continuing or a dissolved partnership.
(b) Any corporate reorganization, where all of the corporations
involved are members of an affiliated group, and that qualifies as a
reorganization under Section 368 of the United States Internal
Revenue Code and that is accepted as a nontaxable event by similar
California statutes, or any transfer of real property among members
of an affiliated group, or any reorganization of farm credit
institutions pursuant to the federal Farm Credit Act of 1971 (Public
Law 92-181), as amended, shall not be a change of ownership. The
taxpayer shall furnish proof, under penalty of perjury, to the
assessor that the transfer meets the requirements of this
subdivision.
For purposes of this subdivision, "affiliated group" means one or
more chains of corporations connected through stock ownership with a
common parent corporation if both of the following conditions are
met:
(1) One hundred percent of the voting stock, exclusive of any
share owned by directors, of each of the corporations, except the
parent corporation, is owned by one or more of the other
corporations.
(2) The common parent corporation owns, directly, 100 percent of
the voting stock, exclusive of any shares owned by directors, of at
least one of the other corporations.
(c) (1) When a corporation, partnership, limited liability
company, other 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, or
ownership interests in other legal entities, including any purchase
or transfer of 50 percent or less of the ownership interest through
which control or a majority ownership interest is obtained, the
purchase or transfer of that stock or other interest shall be a
change of ownership of the real property owned by the corporation,
partnership, limited liability company, or other legal entity in
which the controlling interest is obtained.
(2) On or after January 1, 1996, when an owner of a majority
ownership interest in any partnership obtains all of the remaining
ownership interests in that partnership or otherwise becomes the sole
partner, the purchase or transfer of the minority interests, subject
to the appropriate application of the step-transaction doctrine,
shall not be a change in ownership of the real property owned by the
partnership.
(d) If property is transferred on or after March 1, 1975, to a
legal entity in a transaction excluded from change in ownership by
paragraph (2) of subdivision (a) of Section 62, then the persons
holding ownership interests in that legal entity immediately after
the transfer shall be considered the "original coowners." Whenever
shares or other ownership interests representing cumulatively more
than 50 percent of the total interests in the entity are transferred
by any of the original coowners in one or more transactions, a change
in ownership of that real property owned by the legal entity shall
have occurred, and the property that was previously excluded from
change in ownership under the provisions of paragraph (2) of
subdivision (a) of Section 62 shall be reappraised.
The date of reappraisal shall be the date of the transfer of the
ownership interest representing individually or cumulatively more
than 50 percent of the interests in the entity.
A transfer of shares or other ownership interests that results in
a change in control of a corporation, partnership, limited liability
company, or any other legal entity is subject to reappraisal as
provided in subdivision (c) rather than this subdivision.
(e) To assist in the determination of whether a change of
ownership has occurred under subdivisions (c) and (d), the Franchise
Tax Board shall include a question in substantially the following
form on returns for partnerships, banks, and corporations (except
tax-exempt organizations):
If the corporation (or partnership or limited liability company)
owns real property in California, has cumulatively more than 50
percent of the voting stock (or more than 50 percent of total
interest in both partnership or limited liability company capital and
partnership or limited liability company profits) (1) been
transferred by the corporation (or partnership or limited liability
company) since March 1, 1975, or (2) been acquired by another legal
entity or person during the year (See instructions.)
If the entity answers "yes" to (1) or (2) in the above question,
then the Franchise Tax Board shall furnish the names and addresses of
that entity and of the stock or partnership or limited liability
company ownership interest transferees to the State Board of
Equalization.
65. (a) The creation, transfer, or termination of any joint tenancy
is a change in ownership except as provided in this section, Section
62, and Section 63. Upon a change in ownership of a joint tenancy
interest only the interest or portion which is thereby transferred
from one owner to another owner shall be reappraised.
(b) There shall be no change in ownership upon the creation or
transfer of a joint tenancy interest if the transferor or
transferors, after such creation or transfer, are among the joint
tenants. Upon the creation of a joint tenancy interest described in
this subdivision, the transferor or transferors shall be the
"original transferor or transferors" for purposes of determining the
property to be reappraised on subsequent transfers. The spouses of
original transferors shall also be considered original transferors
within the meaning of this section.
(c) Upon the termination of an interest in any joint tenancy
described in subdivision (b), the entire portion of the property held
by the original transferor or transferors prior to the creation of
the joint tenancy shall be reappraised unless it vests, in whole or
in part, in any remaining original transferor, in which case there
shall be no reappraisal. Upon the termination of the interest of the
last surviving original transferor, there shall be a reappraisal of
the interest then transferred and all other interests in the
properties held by all original transferors which were previously
excluded from reappraisal pursuant to this section.
(d) Upon the termination of an interest held by other than the
original transferor in any joint tenancy described in subdivision
(b), there shall be no reappraisal if the entire interest is
transferred either to an original transferor or to all remaining
joint tenants, provided that one of the remaining joint tenants is an
original transferor.
(e) For purposes of this section, for joint tenancies created on
or before March 1, 1975, it shall be rebuttably presumed that each
joint tenant holding an interest in property as of March 1, 1975,
shall be an "original transferor." This presumption is not applicable
to joint tenancies created after March 1, 1975.
65.1. (a) Except for a joint tenancy interest described in
subdivision (f) of Section 62, when an interest in a portion of real
property is purchased or changes ownership, only the interest or
portion transferred shall be reappraised. A purchase or change in
ownership of an interest with a market value of less than 5 percent
of the value of the total property shall not be reappraised if the
market value of the interest transferred is less than ten thousand
dollars ($10,000) provided, however, that transfers during any one
assessment year shall be cumulated for the purpose of determining the
percentage interests and value transferred.
(b) If a unit or lot within a cooperative housing corporation,
community apartment project, condominium, planned unit development,
shopping center, industrial park, or other residential, commercial,
or industrial land subdivision complex with common areas or
facilities is purchased or changes ownership, then only the unit or
lot transferred and the share in the common area reserved as an
appurtenance of such unit or lot shall be reappraised.
Notwithstanding any other provision of law, the increase in
property taxes resulting from such reappraisal shall be applied by
the owner of such property to the tenant-shareholder, lessee, or
occupant of such individual unit or lot only, and shall not be
prorated among all other units or lots of such property.
66. Change in ownership does not include any of the following:
(a) The creation, vesting, transfer, distribution, or termination
of a participant's or beneficiary's interest in an employee benefit
plan.
(b) Any contribution of real property to an employee benefit plan.
(c) Any acquisition by an employee benefit plan of the stock of
the employer corporation pursuant to which the employee benefit plan
obtains direct or indirect ownership or control of more than 50
percent of the voting stock of the employer corporation.
As used in this section, the terms "employer," "employee benefit
plan," "participant," and "beneficiary" shall be defined as they are
defined in the Employee Retirement Income Security Act of 1974.
67. "Purchased" or "purchase" means a change in ownership for
consideration.
68. For purposes of Section 2 of Article XIII A of the
Constitution, the term "change in ownership" shall not include the
acquisition of real property as a replacement for comparable property
if the person acquiring the real property has been displaced from
property in this state by eminent domain proceedings, by acquisition
by a public entity, or by governmental action which has resulted in a
judgment of inverse condemnation.
The adjusted base year value of the property acquired shall be the
lower of the fair market value of the property acquired or the value
which is the sum of the following:
(a) The adjusted base year value of the property from which the
person was displaced.
(b) The amount, if any, by which the full cash value of the
property acquired exceeds 120 percent of the amount received by the
person for the property from which the person was displaced.
The provisions of this section shall apply to eminent domain
proceedings, acquisitions, or judgments of inverse condemnation after
March 1, 1975, and shall affect only those assessments of that
property which occur after June 8, 1982.
Persons acquiring replacement property between March 1, 1975, and
January 1, 1983, shall request assessment under this section with the
assessor on or before January 1, 1987. Persons acquiring replacement
property on and after January 1, 1983, shall request assessment
within four years of the date the property was acquired by eminent
domain or purchase or the date the judgment of inverse condemnation
becomes final.
Any change in the adjusted base year value of the replacement
property acquired, resulting from the application of the provisions
of this section, shall be deemed to be effective on the first day of
the month following the month in which the property is acquired. The
change in value shall be treated as a change in ownership for the
purpose of placing supplemental assessments on the supplemental roll
pursuant to Chapter 3.5 (commencing with Section 75). The assessor
shall, however, appraise the replacement property acquired in
accordance with the provisions of this section rather than the
provisions of Section 75.10. The provisions of Chapter 3.5 shall be
liberally construed in order to provide the benefits of this section
and Section 2 of Article XIII A of the California Constitution to
affected property owners at the earliest possible date.
69. (a) Notwithstanding any other law, pursuant to Section 2 of
Article XIII A of the Constitution, the base year value of property
that is substantially damaged or destroyed by a disaster, as declared
by the Governor, may be transferred to comparable property within
the same county, which is acquired or newly constructed within five
years after the disaster, including in the case of the Northridge
earthquake, as a replacement for the substantially damaged or
destroyed property. At the time the base year value of the
substantially damaged or destroyed property is transferred to the
replacement property, the substantially damaged or destroyed property
shall be reassessed at its full cash value; however, the
substantially damaged or destroyed property shall retain its base
year value notwithstanding the transfer authorized by this section.
If the owner or owners of substantially damaged or destroyed property
receive property tax relief under this section, that property shall
not be eligible for property tax relief under subdivision (c) of
Section 70 in the event of its reconstruction.
(b) The replacement base year value of the replacement property
acquired shall be determined in accordance with this section.
The assessor shall use the following proced
