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California Revenue And Taxation Code Section 61

Legal Research Home > California Lawyer > Revenue and Taxation Code > California Revenue And Taxation Code Section 61

Except as otherwise provided in Section 62, change in
ownership, as defined in Section 60, includes, but is not limited to:

   (a) The creation, renewal, sublease, assignment, or other transfer
of the right to produce or extract oil, gas, or other minerals
regardless of the period during which the right may be exercised. The
balance of the property, other than the mineral rights, shall not be
reappraised pursuant to this section.
   (b) The creation, renewal, extension, or assignment of a taxable
possessory interest in tax exempt real property for any term. For
purposes of this subdivision:
   (1) "Renewal" and "extension" do not include the granting of an
option to renew or extend an existing agreement pursuant to which the
term of possession of the existing agreement would, upon exercise of
the option, be lengthened, whether the option is granted in the
original agreement or subsequent thereto.
   (2) Any "renewal" or "extension" of a possessory interest during
the reasonably anticipated term of possession used by the assessor to
value that interest does not cause a change in ownership until the
end of the reasonably anticipated term of possession used by the
assessor to value that interest. At the end of the reasonably
anticipated term of possession used by the assessor, a new base year
value, based on a new reasonably anticipated term of possession,
shall be established for the possessory interest.
   (3) "Assignment" of a possessory interest means the transfer of
all rights held by a transferor in a possessory interest.
   (c) The creation of a leasehold interest in taxable real property
for a term of 35 years or more (including renewal options), the
termination of a leasehold interest in taxable real property which
had an original term of 35 years or more (including renewal options),
and any transfer of a leasehold interest having a remaining term of
35 years or more (including renewal options); or (2) any transfer of
a lessor's interest in taxable real property subject to a lease with
a remaining term (including renewal options) of less than 35 years.
   Only that portion of a property subject to that lease or transfer
shall be considered to have undergone a change in ownership.
   For the purpose of this subdivision, for 1979-80 and each year
thereafter, it shall be conclusively presumed that all homes eligible
for the homeowners' exemption, other than manufactured homes located
on rented or leased land and subject to taxation pursuant to Part 13
(commencing with Section 5800) and floating homes subject to
taxation pursuant to Section 229, that are on leased land have a
renewal option of at least 35 years on the lease of that land,
whether or not in fact that renewal option exists in any contract or
agreement.
   (d) (1) (A) A sublease of a taxable possessory interest in
tax-exempt real property for a term, including renewal options, that
exceeds half the length of the remaining term of the leasehold,
including renewal options.
   (B) The termination of a sublease of a taxable possessory interest
in tax-exempt property with an original term, including renewal
options, that exceeds half the length of the remaining term of the
leasehold, including renewal options.
   (C) Any transfer of a sublessee's interest with a remaining term,
including renewal options, that exceeds half of the remaining term of
the leasehold.
   (2) Any transfer of a possessory interest in tax-exempt real
property subject to a sublease with a remaining term, including
renewal options, that does not exceed half the remaining term of the
leasehold, including renewal options.
   (e) The creation, transfer, or termination of any joint tenancy
interest, except as provided in subdivision (f) of Section 62, and in
Section 63 and Section 65.
   (f) The creation, transfer, or termination of any
tenancy-in-common interest, except as provided in subdivision (a) of
Section 62 and in Section 63.
   (g) Any vesting of the right to possession or enjoyment of a
remainder or reversionary interest that occurs upon the termination
of a life estate or other similar precedent property interest, except
as provided in subdivision (d) of Section 62 and in Section 63.
   (h) Any interests in real property that vest in persons other than
the trustor (or, pursuant to Section 63, his or her spouse) when a
revocable trust becomes irrevocable.
   (i) The transfer of stock of a cooperative housing corporation,
vested with legal title to real property that conveys to the
transferee the exclusive right to occupancy and possession of that
property, or a portion thereof. A "cooperative housing corporation"
is a real estate development in which membership in the corporation,
by stock ownership, is coupled with the exclusive right to possess a
portion of the real property.
   (j) The transfer of any interest in real property between a
corporation, partnership, or other legal entity and a shareholder,
partner, or any other person.

Last modified: January 12, 2009