Home Publications Guides, Manuals, and Reference Materials County Tax Collectors' Reference Manual (2012) Chapter 1000 Secured Collections 1050-1052 General Overview: Change of Ownership Statements

1050-1052 General Overview: Change of Ownership Statements

1050. FILING OF OWNERSHIP STATEMENT
Whenever there is any change of ownership of real property or of a manufactured home subject to local property taxation, the buyer is required to file a signed change-in-ownership statement, under penalty of perjury, in the county where the real property or home is located. In the case of a change in ownership where the transferee is not locally assessed, no change-in-ownership statement is required (Rev. & Tax. Code §480(a)).

In the event of the death of an assessee, the personal representative shall file a change-in- ownership statement with the county recorder or the assessor in each county in which the decedent owned, at the time of death, real property that is subject to probate proceedings. The statement shall be filed prior to or at the time the inventory and appraisal are filed with the court clerk. In all other cases in which an interest in real property is transferred by reason of death, including a transfer through the medium of a trust, the change in ownership statement or statements shall be filed by the trustee (if the property was held in trust) or the transferee with the county recorder or the assessor in each county in which the decedent owned an interest in real property, within 150 days after the date of death (Rev. & Tax. Code §480(b)).

1051. PENALTY FOR FAILURE TO FILE
Generally, the change-in-ownership statement must be filed at the time of recording or, if the transfer is not recorded, within 45 days of the date of the change in ownership. However when the change in ownership has occurred by reason of death, the statement shall be filed within 150 days after the date of death or, if the estate is probated, at the time the inventory and appraisal are filed.

If any person fails to file a change-in-ownership statement within 45 days from the date so requested by the assessor, a penalty attaches. The penalty is the greater of $100 or 10 percent of the taxes applicable to the new base-year value of the real property or manufactured home. The penalty cannot exceed $2,500 unless the failure to file the notice is willful (Rev. & Tax. Code §482).

1052. ENROLLMENT OF PENALTY ASSESSMENT
The penalty is added to the roll in the same manner as a special assessment. For purposes of collection, delinquent penalties, and enforcement, a penalty is treated the same as all other taxes on the roll on which it is entered. After January 1, the penalty may be added to the current roll only with approval of the tax collector. This procedure is typically employed to provide maximum security for its enforcement.

If a property transferred is only a portion of a parcel on the roll for the fiscal year in which the assessor's 45-day notice expires, the taxes on the parcel must be prorated. This enables computation of the penalty on the taxes applicable only to the property transferred. The proration is accomplished like a separate valuation for payment of taxes on a portion of a current assessment parcel without, however, an application from the taxpayer. In these cases, the penalty may be entered on the current unsecured roll, in the name of the transferee, or on the current or subsequent year's secured roll as a lien against the portion transferred.

When a property has been transferred or encumbered by a lien prior to enrollment of a penalty for failure to respond to the assessor's 45-day notice, such penalty must be entered on the delinquent unsecured roll. The assessee is the transferee whose failure to file the change-in-ownership statement resulted in imposition of the penalty.

After entry of the penalty on the delinquent unsecured roll, a certificate of lien may be filed immediately, pursuant to provisions of Revenue and Taxation Code section 2191.3.

Notice of any penalty added to the roll must be mailed by the assessor to the assessee. The address used is that contained in the recorded instrument or document showing a change of ownership (Rev. & Tax. Code §482).

NOTE: Only when there has been a written request by the assessor does the penalty attach for failure to file within 45 days after such request.