Legal Changes in Ownership

Change in Ownership

A change in ownership is a challenging event, and it is important to make sure the transfer does not create an assessable event. Reassessment sets the base year value to current market value, which is why the transfer should be structured in a manner that does not cause an increase in your taxes.

The most common mistakes happen when the laws pertaining to the intended transfer are not applied. Examples of exclusions include:

• Parent to Child
• Grandparent to Grandchild
• Inter-Spousal
• Legal Entity

We recommend contacting us first so we can help you avoid reassessment or an increase in property taxes. If the County Assessor increases your property tax due to a transfer or a grant deed recording, we can consult with you on the options available to reduce those taxes for the life of the ownership.

Where Transfers Go Wrong

When property transfers between legal entities, the people transferring the property must be the same people receiving the property if the intent is only to change the manner in which the property is held. Two patterns cause problems repeatedly. Owners transfer property into a trust and include family members who were not part of the original title. Or they transfer property between their own legal entities without accounting for the members or stockholders of the new company.

Past and Pending Transfers

Paramount Property Tax Appeal works closely with an associate attorney who specializes in property transfers. We communicate with clients throughout the process to identify the documents needed to reach the desired outcome. If review of those documents shows no case on the transfer itself, we move to the question of the value assessed at the time of transfer.

Change of ownership appeals fall into two classifications, which gives us more than one route to challenge a transfer:

1. B1

   No change in ownership occurred on the date the Assessor identified.

2. B2

   The base year value established for the change in ownership is incorrect.

If you have questions about a past or pending transfer, contact us.

Paramount Property Tax Appeal significantly reduced my tax bill. Their constant communication and expertise made the tax appeal process painless for me.