Change In Ownership
Proposition 13 requires that all property be reassessed as
of its date of change in ownership. The Assessor's Office reviews
all recorded deeds to determine which require reappraisal under
the law. Once it has been determined that a reappraisable change
in ownership has occurred, the Assessor then determines the market
value of the properties as of the date it changed ownership.
Values established by the Assessor whenever a change in ownership
reassessment occurs are known as Proposition 13 Base Year Values
and will not be changed (except for the automatic maximum 2%
annual inflation factoring provided for in Prop 13) until a subsequent
change in ownership occurs.
Only that portion of the property that changes ownership is
subject to reappraisal. For example, if 50% of the property is
transferred, the Assessor will reassess 50% of the property at
its market value as of the date of transfer, and also deduct
50% from any existing Proposition 13 base year values already
assigned to the property.
In addition to the Preliminary Change In Ownership Statement
(click HERE for Preliminary Change In Ownership form) ordinarily filed whenever a transfer of a property interest is
recorded with the County Recorder, the Assessor may also request
additional information about a deed or other matters related
to the transfer. (NOTE: Any change in ownership statements
or other information supplied to the Assessor about any property
transfer are strictly confidential and are not available for
public inspection.)
The law provides that the sales price of the property is presumed
to be its market value unless the Assessor can demonstrate through
market or other evidence that the sales price does not accurately
reflect market value. Because of this provision in law, the Assessor
may, and often does, assess property at amounts below or above
its actual sales price.
The Assessor must also adjust the sales price of a property
to reflect any value attributable to non-cash items exchanged
in a sale. For example, if a buyer assumes a construction loan,
or 2nd mortgage from a seller, the current market value of those
promissory notes must be added to the sales price. The same is
true if the buyer assumes assessment bonds, tax liabilities or
things of that nature, or trades a car or other property as part
of the sales prices.
Owners Must Notify the Assessor of any Change in Ownership:
The law requires the owners of any property that has changed
ownership (except those caused by the death of an owner) to file
a change in ownership statement when the transfer is recorded,
or, if not recorded, within 45 days of the date of transfer.
Failure to notify the Assessor will result in the assessment
of failure-to-file penalties.
If the change in ownership was the result of a death, the
law requires that the Assessor be notified of such changes within
150 days of the date of death, or if the estate is probated,
at the same time that the "inventory and appraisal"
is filed. Failure to notify the Assessor will result in the assessment
of failure-to-file penalties.
The penalty for failure to file a Change in Ownership Statement
upon a written request by the Assessor is $100 or 10% of the
new base year value resulting from the transfer, whichever is
greater, but cannot exceed $2,500 unless the failure to file
was willful.
Ordinarily, when most sales or transfers of property are
recorded with the County Recorder, whoever records the deed
also files what is known as a "Preliminary Change In
Ownership Report" (PCOR) for the owner. This notice
normally satisfies the reporting requirement unless the
PCOR is incomplete. However, if the deed is not recorded,
or if at the time of recording the owner chooses not to
file a PCOR, the owner is still obligated to file a change
in ownership statement with the Assessor and within the
prescribed time limits.
It is important that owners notify the Assessor of any changes
in ownership as soon as possible in order to avoid ‘failure-to-file’
penalties, as well as to avoid potential interest charges and
other possible penalties associated with resulting escape assessments.
Under the current statute of limitations, the Assessor must retroactively
escape assess as many as 8 prior assessment rolls if the escape
was the result of the failure to file a required change in ownership
statement. Such long-term escape assessments can be very problematic
and expensive to resolve, and prompt filing can help an owner
avoid those pitfalls.
If you need Preliminary Change in Ownership Report forms and
various other change in ownership reporting forms, please click HERE or see the end of this page for contact information.
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Contacting Us  |
Madera County Assessor's Office
200 W. 4th Street
Madera, CA 93637
Telephone: (559) 675-7710
Fax: (559) 675-7654
Office Hours: 8:00 AM to 5:00 PM
Monday through Friday
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