Fill - Free fillable August 11, 2010 STATE BOARD OF EQUALIZATION (California) PDF form

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

PROPERTY AND SPECIAL TAXES DEPARTMENT

450 N STREET, SACRAMENTO, CALIFORNIA

PO BOX 942879, SACRAMENTO, CALIFORNIA 94279-0064

916 445-4982

 FAX 916 323-8765

www.boe.ca.gov

BETTY T. YEE

First District, San Francisco

MICHELLE STEEL

Third District, Rolling Hills Estates

JEROME E. HORTON

Fourth District, Los Angeles

JOHN CHIANG

State Controller

_______

BARBARA ALBY

Acting Member

Second District, Sacramento

_______

RAMON J. HIRSIG

Executive Director

No. 2010/038

August 11, 2010

TO COUNTY ASSESSORS AND INTERESTED PARTIES:

PRELIMINARY CHANGE OF OWNERSHIP REPORT

AND

CHANGE IN OWNERSHIP STATEMENT

As announced in Letter To Assessors 2009/050, Board staff recently conducted an interested

parties process to implement the provisions of Senate Bill 824 (Stats. 2009, ch. 67), effective

January 1, 2010. SB 824 amended Revenue and Taxation Code section 480.4 to remove the

language for the Preliminary Change of Ownership Report (PCOR) from the statute.

Section 480.4 now provides that the Board will prescribe the language for the PCOR after

consultation with the California Assessors' Association (CAA) and interested parties.

Following the interested parties process, the Board adopted the attached PCOR at its

July 15, 2010 meeting. Also adopted at the July 15 meeting was the attached Change in

Ownership Statement (COS) which mirrors the PCOR. Both the PCOR and COS forms are

available in a fillable PDF format that has been designed and tested for Americans with

Disabilities Act (ADA) compliance. When posted to a website, the forms will be readable by a

screen reader for individuals with sight impairments. All counties must implement the use of the

revised PCOR and COS by the January 1, 2011 lien date.

During the course of the interested parties process for development of the revised PCOR, several

questions were raised. The following are those questions and the responses from the Board's

Legal Department.

Questions and Answers

1. Does the language in SB 824 allow interested parties to develop multiple PCORs?

There is no explicit requirement in the language of either section 480.3 or 480.4, as

amended by SB 824, which requires there only be one PCOR applicable to all types of

transferees, or that allows the development of different PCORs for different transferees.

SB 824 simply requires that the Board, after consultation with the CAA and interested

parties, prescribe the PCOR. However, we believe that there should be only one PCOR since

section 480.4, subdivision (b), states that the Board shall prescribe the PCOR, suggesting

that there should only be one form. We believe that multiple PCORs may be more likely to

cause confusion and frustrate the statutory purpose of section 480.4 to maintain "statewide

uniformity in the contents of the report." This would, however, in no way preclude the

TO COUNTY ASSESSORS 2 August 11, 2010

AND INTERESTED PARTIES

development of a PCOR with multiple sections or schedules requesting different

information from different types of transferees.

However, while we believe that only one PCOR should be used statewide, development of

multiple COSs may be feasible to capture data necessary for county assessors to make a

valuation decisions for some property use-types, for example hotels or industrial properties.

2. If an assessee completes all the information on a PCOR, and the county then mails out a

COS, can a penalty be applied if the COS is not returned or is returned with incomplete

information?

Yes. The PCORs and COSs are two separate statements governed by two separate statutory

provisions. Compliance with one does not waive the requirement to comply with the other.

Furthermore, section 480.3, subdivision (d), governing PCORs, provides that, "The

authority to obtain information pursuant to this section is in addition to, and not in lieu of,

any existing authority the assessor has under this article." However, currently the PCOR and

COS mirror each other so there would be no benefit for a county assessor to send a COS

after receiving a completed PCOR.

3. If a PCOR is completed for a commercial property (for example) and a subsequent form is

then sent requesting more detailed income information and the supplemental form is not

returned, could this be considered as an incomplete PCOR and a COS procedure started

that might result in a penalty under section 482?

Section 480.3 allows a transferee to file a PCOR at the time of recording a document that

evidences a change in ownership and avoid an additional $20 recording fee. The additional

$20 recording fee is the only penalty allowed by statute in the event a PCOR is not filed at

the time of recording. If a county assessor determines that a filed PCOR is incomplete,

he/she may send a "supplemental" PCOR requesting the transferee provide all the necessary

information. Alternatively, a county assessor may send a COS to the transferee. If the COS

statement is not filed or is filed incomplete, the county assessor may apply a penalty as

provided for in section 482. As explained in the answer to question 2, the PCOR and COS

are governed by separate statutory provisions, and the filing of one does not relieve the

transferee of the obligation to file the other.

4. Can an assessor mail a taxpayer a PCOR when it has not been completed at the time of

recording or must the assessor send the taxpayer a COS?

Section 480.3 allows the filing of a PCOR at the time of recording a document that

evidences a change in ownership. That provision does not provide for the filing of a PCOR

at any other time. Thus, while there is no statutory prohibition against a county assessor

requesting a PCOR at some time other than recording, we believe it is not good practice to

do so. Furthermore, no penalty would apply if the transferee did not file a PCOR

subsequently sent by a county assessor. As explained above, the consequences for non-filing

of a PCOR is at the time of recording which results in an additional $20 recording fee. The

TO COUNTY ASSESSORS 3 August 11, 2010

AND INTERESTED PARTIES

recorder may not refuse to record the document even if a PCOR is not filed as long as the

additional fee is paid.

For these reasons, it is our opinion that if a PCOR is not filed at the time of recording, a

county assessor should send a COS to obtain change in ownership information. If the COS

is not filed by the transferee within 45 days of the county assessor's request, the section 482

penalty will then apply.

If you have questions regarding the implementation of the PCOR and COS, please contact

Mr. Bryan Bagood, Forms Coordinator, at bryan.bagood@boe.ca.gov or at 916-322-3815.

Sincerely,

/s/ David J. Gau

David J. Gau

Deputy Director

Property and Special Taxes Department

DJG:sk

E. ThistransactionistoreplaceaprincipalresidencebyapersonwhoisseverelydisabledasdenedbyRevenueandTaxationCode

section69.5.Withinthesamecounty?

D. This transaction is to replace a principal residence by a person 55 years of age or older.

Withinthesamecounty?

STREETADDRESSORPHYSICALLOCATIONOFREALPROPERTY

SELLER/TRANSFEROR

BUYER/TRANSFEREE

MAIL PROPERTY TAX INFORMATION TO (NAME)

ADDRESS

CITY STATE ZIPCODE

ASSESSOR'SPARCELNUMBER

BUYER’S DAYTIME TELEPHONE NUMBER

PART 1. TRANSFER INFORMATION Please complete all statements.

YES

YES NO

A. This

transferissolelybetweenspouses(addition or removal of a spouse, death of a spouse, divorce settlement, etc.).

B. ThistransferissolelybetweendomesticpartnerscurrentlyregisteredwiththeCaliforniaSecretaryofState(addition or removal of

a partner, death of a partner, termination settlement, etc.).

M.Thisisatransfersubjecttosubsidizedlow-incomehousingrequirementswithgovernmentallyimposedrestrictions.

N. Thistransferistotherstpurchaserofanewbuildingcontaininganactivesolarenergysystem.

G.Therecordeddocumentcreates,terminates,orreconveysalender'sinterestintheproperty.

I. Therecordeddocumentsubstitutesatrusteeofatrust,mortgage,orothersimilardocument.

F. This transaction is only a correction of the name(s) of the person(s) holding title to the property (e.g., a name change upon marriage).

IfYES,pleaseexplain:

H. Thistransactionisrecordedonlyasarequirementfornancingpurposesortocreate,terminate,orreconveyasecurityinterest

(e.g., cosigner).IfYES,pleaseexplain

C. This

isatransferbetween: parent(s) and child(ren)parent(s) and child(ren) arent(s) and grandchild(ren).

( )

1.to/fromarevocabletrustthatmayberevokedbythetransferorandisforthebenetof

 thetransferor,and/orthetransferor'sspouse

registereddomesticpartner.

2. to/fromatrustthatmayberevokedbythecreator/grantor/trustorwhoisalsoajointtenant,andwhich

namestheotherjointtenant(s)asbeneciarieswhenthecreator/grantor/trustordies.

 3.to/fromanirrevocabletrustforthebenetofthe

  creator/grantor/trustorand/orgrantor's/trustor’sspouse

grantor’s/trustor’sregistereddomesticpartner.

 4.

to/fromanirrevocabletrustfromwhichthepropertyrevertstothecreator/grantor/trustorwithin12years.

K. Thispropertyissubjecttoaleasewitharemainingleasetermof35yearsormoreincludingwrittenoptions.

J. This is a transfer of property:

YESYES

This

propertyisintendedasmyprincipalresidence.IfYES,pleaseindicatethedateofoccupancy

orintendedoccupancy.

MO DAY YEAR

L. This is a transfer between parties in which proportional interests of the transferor(s) and transferee(s) in each and every parcel

beingtransferredremainexactlythesameafterthetransfer.

grandp

BOE-502-AH (P1) REV. 13 (07-10)

CHANGE IN OWNERSHIP STATEMENT

This statement represents a written request from the Assessor.

Failure to le will result in the assessment of a penalty.

FILE THIS STATEMENT BY:

IMPORTANT NOTICE

The law requires any transferee acquiring an interest in real property or manufactured home subject to local property taxation, and that is

assessed by the county assessor, to le a Change in Ownership Statement with the County Recorder or Assessor. The Change in Ownership

Statement must be led at the time of recording or, if the transfer is not recorded, within 45 days of the date of the change in ownership, except

that where the change in ownership has occurred by reason of death the statement shall be led within 150 days after the date of death or, if

the estate is probated, shall be led at the time the inventory and appraisal is led. The failure to le a Change in Ownership Statement within

45 days from the date of a written request by the Assessor results in a penalty of either: (1) one hundred dollars ($100); or (2) 10 percent of the

taxes applicable to the new base year value reecting the change in ownership of the real property or manufactured home, whichever is greater,

but not to exceed two thousand ve hundred dollars ($2,500) if that failure to le was not willful. This penalty will be added to the assessment

roll and shall be collected like any other delinquent property taxes, and be subject to the same penalties for nonpayment.

*Ifyou checkedYES to statementsC, D, orE, you mayqualifyfor a propertytax reassessment exclusion,which may allowyou to

maintainyourprevioustaxbase.IfyoucheckedYEStostatementN,youmayqualifyforapropertytaxnewconstructionexclusion.A

claimformmustbeledandallrequirementsmetinordertoobtainanyoftheseexclusions.ContacttheAssessorforclaimforms.

THIS DOCUMENT IS NOT SUBJECT TO PUBLIC INSPECTION

PleaseprovideanyotherinformationthatwillhelptheAssessorunderstandthenatureofthetransfer.

YESYES

BOE-502-AH (P2) REV. 13 (07-10)

Phonenumber:

Remaining term in years (including written options):

PART 2. OTHER TRANSFER INFORMATION

Check and complete as applicable.

A. Dateoftransfer,ifotherthanrecordingdate:

C. Onlyapartialinterestinthepropertywastransferred. IfYES,indicatethepercentagetransferred:

B. Type of transfer:

:   :

Purchase Foreclosure Gift Tradeorexchange

Sale/leaseback Creationofalease Assignment of a lease

Contractofsale.Dateofcontract

Other.Pleaseexplain:

Original term in years (including written options):

Inheritance. Date of death

Termination of a lease. Date lease began

Merger,stock,orpartnershipacquisition(FormBOE-100-B)

YES NO

PART 3. PURCHASE PRICE AND TERMS OF SALE

Check and complete as applicable.

A. Totalpurchaseoracquisitionprice.Donotincludeclosingcostsormortgageinsurance.

Down payment:

Loan carried by seller AssumptionofContractualAssessment*witharemainingbalanceof:

*Anassessmentusedtonanceproperty-specicimprovementsthatconstitutesalienagainsttherealproperty.

Balloon payment:

Interest rate:

B. Thepropertywaspurchased:

C. Pleaseexplainanyspecialterms,sellerconcessions,nancing,andanyotherinformation(e.g.,buyerassumedtheexistingloanbalance)that

wouldassisttheAssessorinthevaluationofyourproperty.

Seller-paid points or closing costs:

Other.Pleaseexplain:

( )

Direct from seller

roughrealestatebroker.Brokername:

From a family member

Single-family residence

Co-op/Own-your-own

Lease/rent

Contract

Mineral rights Ot

Condominium

Unim

TimeshareOther.Description:(i.e.,timber,mineral,waterrights,etc.)

Multiple-familyresidence.Numberofunits

Manufacturedhome

Commercial/Industrial

her

proved lot

YES

YES N

YES NO

Good Average Fair Poor

IfYES,enterthevalueofthepersonal/businessproperty:

IfYES,enterthevalueattributedtothemanufacturedhome:

IfYES,theincomeisfrom:

Personal/business property, orincentives, are included in the purchase price. Examples are furniture, farm equipment,

machinery,clubmemberships,etc.Attachlistifavailable.

Amanufacturedhomeisincludedinthepurchaseprice.

Themanufacturedhomeissubjecttolocalpropertytax.IfNO,enterdecalnumber:

Thepropertyproducesrentalorotherincome.

The condition of the property at the time of sale was:

A. Type of property transferred

SIGNATUREOFBUYER/TRANSFEREEORCORPORATEOFFICER

NAME

OFBUYER/TRANSFEREE/LEGALREPRESENTATIVE/CORPORATEOFFICER(PLEASEPRINT)

E-MAIL ADDRESS

DATE

TITLE

PART 4. PROPERTY INFORMATION

Check and complete as applicable.

CERTIFICATION

I certify (or declare) under penalty of perjury under the laws of the State of California that the foregoing and all information hereon, including any

accompanying statements or documents, is true and correct to the best of my knowledge and belief. This declaration is binding on each and

every buyer/transferee.

TheAssessor’sofcemaycontactyouforadditionalinformationregardingthistransaction.

STREET ADDRESS OR PHYSICAL LOCATION OF REAL PROPERTY

MAIL PROPERTY TAX INFORMATION TO (NAME)

SELLER/TRANSFEROR ASSESSOR'S PARCEL NUMBER

BUYER/TRANSFEREE

ADDRESS

CITY STATE ZIP CODE

BUYER’S DAYTIME TELEPHONE NUMBER

( )

This property is intended as my principal residence. If YES, please indicate the date of occupancy

MO DAY YEAR

YES NO

or intended occupancy.

YES

the transferor, and/or the transferor's spouse registe

creator/grantor/trustor and/or grantor's/trustor

’s spouse

E. This transaction is to replace a principal residence by a person who is severely disabled as dened by Revenue and Taxation Code

section 69.5. Within the same county?

D. This transaction is to replace a principal residence by a person 55 years of age or older.

Within the same county?

YES NO

A. This transfer is solely between spouses (addition or removal of a spouse, death of a spouse, divorce settlement, etc.).

B. This transfer is solely between domestic partners currently registered with the California Secretary of State (addition or removal of

a partner, death of a partner, termination settlement, etc.).

M. This is a transfer subject to subsidized low-income housing requirements with governmentally imposed restrictions.

N. This transfer is to the rst purchaser of a new building containing an active solar energy system.

G. The recorded document creates, terminates, or reconveys a lender's interest in the property.

I. The recorded document substitutes a trustee of a trust, mortgage, or other similar document.

F. This transaction is only a correction of the name(s) of the person(s) holding title to the property (e.g., a name change upon marriage).

If YES, please explain:

H. This transaction is recorded only as a requirement for nancing purposes or to create, terminate, or reconvey a security interest

(e.g., cosigner). If YES, please explain:

C. This is a transfer between:

1. to/from a revocable trust that may be revoked by the transferor and is for the benet of

2. to/from a trust that may be revoked by the creator/grantor/trustor who is also a joint tenant, and which

names the other joint tenant(s) as beneciaries when the creator/grantor/trustor dies.

3. to/from an irrevocable trust for the benet of the

4. to/from an irrevocable trust from which the property reverts to the creator/grantor/trustor within 12 years.

K. This property is subject to a lease with a remaining lease term of 35 years or more including written options.

J. This is a transfer of property:

L. This is a transfer between parties in which proportional interests of the transferor(s) and transferee(s) in each and every parcel

being transferred remain exactly the same after the transfer.

BOE-502-A (P1) REV. 11 (07-10)

parent(s) and child(ren) grandparent(s) and grandchild(ren).

red domestic partner.

PRELIMINARY CHANGE OF OWNERSHIP REPORT

To be completed by the transferee (buyer) prior to a transfer of subject property, in

accordance with section 480.3 of the Revenue and Taxation Code. A Preliminary

Change of Ownership Report must be led with each conveyance in the County

Recorder’s ofce for the county where the property is located. Please answer all

questions in each section, and sign and complete the certication before ling. This

form may be used in all 58 California counties. If a document evidencing a change in

ownership is presented to the Recorder for recordation without the concurrent ling of

a Preliminary Change of Ownership Report, the Recorder may charge an additional

recording fee of twenty dollars ($20).

NOTICE: The property which you acquired may be subject to a supplemental

assessment in an amount to be determined by the County Assessor. Supplemental

assessments are not paid by the title or escrow company at close of escrow, and are

not included in lender impound accounts. You may be responsible for the current or

upcoming property taxes even if you do not receive the tax bill.

PART 1. TRANSFER INFORMATION Please complete all statements.

* If you checked YES to statements C, D, or E, you may qualify for a property tax reassessment exclusion, which may allow you to

maintain your previous tax base. If you checked YES to statement N, you may qualify for a property tax new construction exclusion. A

claim form must be led and all requirements met in order to obtain any of these exclusions. Contact the Assessor for claim forms.

Please provide any other information that will help the Assessor understand the nature of the transfer.

THIS DOCUMENT IS NOT SUBJECT TO PUBLIC INSPECTION

grantor’s/trustor’s registered domestic partner.

PART 3. PURCHASE PRICE AND TERMS OF SALE

Check and complete as applicable.

PART 2. OTHER TRANSFER INFORMATION

Check and complete as applicable.

BOE-502-A (P2) REV. 11 (07-10)

Phone number:

Loan carried by seller Assumption of Contractual Assessment* with a remaining balance of:

* An assessment used to nance property-specic improvements that constitutes a lien against the real property.

. The property was purchased:

. Please

explain any special terms, seller concessions, nancing, and any other information (e.g., buyer assumed the existing loan balance) that

would assist the Assessor in the valuation of your property.

Other. Please explain:

Through real estate broker. Broker name:

Direct from seller From a family member

( )

Please explain:

Remaining term in years (including written options):

Purchase Foreclosure Gift Trade or exchange Merger, stock, or partnership acquisition (Form BOE-100-B)

Contract of sale. Date of contract: Inheritance. Date of death:

Sale/leaseback Creation of a lease Assignment of a lease Termination of a lease. Date lease began:

Original term in years (including written options):

Other.

Interest rate:

Lease/rent

Contract

Mineral rights Other:

YES NO

YES

YES NO

YES N

YES NO

A. Date of transfer, if other than recording date

C. Only a partial interest in the property was transferred.

B. Type of transfer:

A. Total purchase or acquisition price. Do not include closing costs or mortgage insurance.

Down payment: Seller-paid points or closing costs:

Balloon payment:

A. Type of property transferred

If YES, enter the value of the personal/business property:

If YES, enter the value attributed to the manufactured home:

If YES, the income is from

Personal/business property, or incentives, are included in the purchase price. Examples are furniture, farm equipment,

machinery, club memberships, etc. Attach list if available.

A manufactured home is included in the purchase price.

The manufactured home is subject to local property tax. If NO, enter decal number:

The property produces rental or other income.

The condition of the property at the time of sale was:

SIGNATURE OF BUYER/TRANSFEREE OR CORPORATE OFFICER

NAME OF BUYER/TRANSFEREE/LEGAL REPRESENTATIVE/CORPORATE OFFICER (PLEASE PRINT)

E-MAIL ADDRESS

DATE

TITLE

Good Average Fair Poor

If YES, indicate the percentage transferred:

PART 4. PROPERTY INFORMATION

Check and complete as applicable.

Single-family residence

Co-op/Own-your-own

Manufactured home

Multiple-family residence. Number of units:

Condominium

Unimproved lot

Other. Description: (i.e., timber, mineral, water rights, etc.) Timeshare Commercial/Industrial

CERTIFICATION

I certify (or declare) under penalty of perjury under the laws of the State of California that the foregoing and all information hereon, including any

accompanying statements or documents, is true and correct to the best of my knowledge and belief. This declaration is binding on each and

every buyer/transferee.

The Assessor’s ofce may contact you for additional information regarding this transaction.

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