California Code of Regulations › Title 18 - Public Revenues › Division 1 - State Board of Equalization-Property Tax (California Department of Tax and Fee Administration - Timber Yield Tax, See Chapter 11) › Chapter 4 - Equalization by State Board › Article 4 - Change in Ownership and New Construction › Section 462.220 - Change in Ownership-Interspousal and Registered Domestic Partner Transfers

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Notwithstanding any other provision of Rules 460 through
					 471, a change in ownership shall not include any interspousal transfer,
					 pursuant to Revenue and Taxation Code section
					 63,
					 or any transfer between registered domestic partners, pursuant to Revenue and
					 Taxation Code section
					 62,
					 subdivision (p), including, but not limited to:
(a) Transfers of ownership interests in legal
				  entities,
(b) Transfers of
				  ownership interests in legal entities resulting in one spouse or registered
				  domestic partner obtaining control as defined in Revenue and Taxation Code
				  section
				  64,
				  subdivision (c),
Example 1: Husband (H) owns a 30 percent ownership interest
					 in a partnership and wife (W) owns a 30 percent ownership interest in the same
					 partnership. W transfers her interest to H; H now owns a 60 percent ownership
					 interest. There is no change in ownership.
(c) Transfers of ownership interests in legal
				  entities by "original co-owners" which would otherwise be cumulated or counted
				  for purposes of Revenue and Taxation Code section
				  64,
				  subdivision (d),
Example 2: Spouses H and W are "original co-owners" of a
					 partnership; each originally owned a 50 percent partnership interest. They have
					 previously each transferred a 10 percent interest to X and to Y, leaving H and
					 W each with a 30 percent partnership interest. W transfers a 15 percent
					 interest to H. Although cumulatively more than 50 percent has been transferred,
					 there is no change in ownership.
(d) Transfers to a trustee for the beneficial
				  use of a spouse or registered domestic partner, or the surviving spouse or
				  registered domestic partner of a deceased transferor, or by a trustee of such a
				  trust to the spouse or registered domestic partner of the trustor,
(e) Transfers which take effect upon the
				  death of a spouse or registered domestic partner,
Example 3: H and W each own a 30 percent interest in
					 General Partnership (GP). H and W transfer their respective partnership
					 interests to the HW Revocable Trust. No change in ownership. Trust provides
					 that upon the death of the first spouse: the assets of the deceased spouse,
					 including partnership interests in GP, shall be distributed to "A Trust," and
					 the assets of the surviving spouse, including partnership interests in GP,
					 shall be distributed to "B Trust." Surviving spouse is the sole present
					 beneficiary of both A Trust and B Trust. No change in ownership upon the death
					 of the first spouse.
(f)
				  Transfers to a spouse or registered domestic partner or former spouse or
				  registered domestic partner in connection with a property settlement agreement,
				  including post-dissolution amendment thereto, or decree of dissolution of a
				  marriage or registered domestic partnership, or legal separation,
(g) The creation, transfer, or termination,
				  solely between spouses or registered domestic partners, of any co-owner's
				  interest, or
(h) The distribution
				  of property of a corporation, partnership, or other legal entity to a spouse or
				  registered domestic partner or former spouse or registered domestic partner
				  having an ownership interest in the legal entity, in exchange for the interest
				  of such spouse in the legal entity in connection with a property settlement
				  agreement, or decree of dissolution of a marriage or registered domestic
				  partnership or legal separation.
1. Change
					 without regulatory effect renumbering and amending former subsections
					 462(l)(1)-(5) to
					 section 462.220 filed 5-11-94 pursuant to
					 title 1, section
					 100, California Code of
					 Regulations (Register 94, No. 19).
2. Amendment of section and NOTE
					 filed 1-21-98; operative 2-20-98 (Register 98, No. 4).
3. Change
					 without regulatory effect amending section heading and section filed 12-24-2013
					 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2013, No. 52).
4. Editorial correction of
					 Example 3 (Register 2014, No. 10).
Note: Authority cited: Section
						15606,
						Government Code. Reference: Sections
						60,
						61,
						62,
						63,
						64,
						65,
						65.1
						and
						67,
						Revenue and Taxation Code.