California Revenue Code 480 Filing Requirements
Learn the reporting procedures required after a California property transfer to ensure a correct tax assessment and maintain compliance with state law.
When ownership of California real estate changes hands, the new owner must inform the county assessor. This notification occurs through a Change in Ownership Statement. The purpose of this report is to trigger a reassessment of the property for tax purposes, ensuring its assessed value aligns with the current market.
Filing Triggers and Deadlines
The requirement to file a Change in Ownership Statement is initiated by specific events under California Revenue and Taxation Code 480. Common triggers include the sale of a property, the death of a property owner, gifting a property, or transferring real estate into or out of a trust. These actions signify a transfer of beneficial use, which is the concept of a change in ownership for tax purposes.
Filing deadlines vary based on the transfer. If a transfer is not recorded, the new owner has 90 days from the transfer date to file a Change in Ownership Statement (COS). In cases of transfer due to death, the deadline is 150 days from the date of death if there is no probate. If the estate is probated, the statement must be filed concurrently with the inventory and appraisal.
Failure to meet these deadlines results in financial penalties. If an owner fails to file a requested COS, the penalty is the greater of $100 or 10 percent of the new base year value from the transfer. The penalty is capped at $5,000 for properties with a homeowners’ exemption and $20,000 for others, unless the failure to file is willful.
Required Information and Documentation
When a property transfer is recorded, a Preliminary Change of Ownership Report (PCOR), Form BOE-502-A, is filed along with the deed. If a PCOR is not filed, or if the transfer is not recorded, the county assessor mails the new owner a Change in Ownership Statement (COS), Form BOE-502-AH. The new owner is responsible for ensuring the form is completed and submitted on time, as it can also be downloaded from the county assessor’s website.
The form requires the full names and mailing addresses for all sellers and buyers. It also requires property details, including the Assessor’s Parcel Number (APN) and the property’s physical address.
Filers must provide the transfer date, purchase price, and transaction terms, such as whether financing was involved. The form also asks the filer to specify the type of transfer, distinguishing between events like a sale, inheritance, gift, or trust transfer.
The filer must indicate if the transfer is exempt from reassessment to prevent a property tax increase. While transfers between spouses are excluded, other family transfers follow Proposition 19 rules. For a primary residence transferred between a parent and child or grandparent and grandchild to be excluded, the new owner must use it as their principal residence and file for the homeowners’ exemption within one year. The exclusion is limited; if the property’s value exceeds the original taxable value by over $1 million, the excess is added to the new value. The grandparent-to-grandchild exclusion applies only if the qualifying parent is deceased, and claiming it requires an additional form.
The Submission Process
The completed and signed Change in Ownership Statement must be submitted to the County Assessor in the county where the property is located. Submission can be done by mail or in person at the assessor’s office.
After filing, the assessor’s office reviews the statement to determine the new assessed value, verifying transfer details and any claimed exclusions. The property owner will then receive a Notice of Assessed Value Change in the mail, which states the new taxable value of the property.