Discussion:FTB Form 100 Question J3

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Discussion Forum Index --> Advanced Tax Questions --> FTB Form 100 Question J3
Discussion Forum Index --> Tax Questions --> FTB Form 100 Question J3

Proptaxguy (talk|edits) said:

24 September 2007

California Change in Ownership question. Company used to be publically traded. Current owner buys back shares and goes private. When public, owner held less than 50% of stock. Now has over 50% and most likely closer to or maybe 100% of company now. Does this trigger a change in ownership for real property assessment? Seem to be getting a lot of different opinions at this point. Appreciate any input.

KatieJ (talk|edits) said:

24 September 2007

Yes, the acquisition of more than 50% of the corporation's stock results in a change of ownership. See Cal. Rev. & Tax. Code Sec. 64(c)(1) and Cal. Code Regs. Sec. 462.180. When any person obtains through any transfer direct or indirect ownership of more than 50% of the total ownership interest in any other legal entity (such as a corporation), all of the property owned directly or indirectly by the acquired legal entity is deemed to have undergone a change in ownership.