CHANGE OF OWNERSHIP BILL DIES

However, it is not all bad news on the property tax front.  We are happy to report that AB 188 (Ammiano; D-San Francisco), was “held” in the Assembly Revenue and Taxation Committee and is dead for the year.  This bill, the most recent in a long line of bills introduced by Mr. Ammiano on the topic, unfairly targeted commercial property in an attempt to trigger more frequent reassessments by redefining what “change of ownership” means.

According to an analysis released by the CalChamber, AB 188 would have drastically altered the definition of “change of ownership” under Proposition 13 by dictating that a “change of ownership” occurs whenever 100% of the ownership interests in the legal entity that owns the commercial property are sold within a three-year period, regardless of whether any person or entity actually obtains control through direct or indirect ownership of at least 50% of the voting stock or ownership interest in the entity owning the property.

© 2007-2012 Building Owners and Managers Association of California (BOMA Cal)