IMPORTANT TAX LAW CHANGE
Revenue
and Taxation Code Sections 480.1 and 480.2 require legal entities (corporations,
partnerships, limited liability companies, etc.) to file form BOE-100-B with
the State Board of Equalization (Board) whenever there is a change in control
or change in ownership of a legal entity and the entity owns California
real property or leases it from a government entity for any term or from a
private owner if the remaining term of the lease is 35 years or more.
Effective
January 1, 2010 the penalty provisions changed; entities must now file with the
Board within 45 days of the event date or be subject to a late filing penalty
(10% of the taxes on all the real property owned by the entity within each
county).
A change in control occurs when any person or entity obtains
more than 50% of the ownership interest in the legal entity. A change in
ownership is a transfer of ownership interests in an entity that results in
a cumulative transfer of more
than 50% of original co-owner interests in that entity; original
co-owners status originates when property is excluded from reassessment under
section 62(a)(2) in a prior transaction. Information on filing requirements and
penalty provisions is available on the Board's website at http://www.boe.ca.gov/proptaxes/leop.htm.
(Note: Part I, question G of the Business Property Statement and Agricultural
Property Statement asks about changes in control and real property ownership.)
CHANGE IN REPORTING
OF COMPUTER EQUIPMENT
There has been a
change in reporting format for computer equipment on the property statement. Previously,
there were three separate columns for reporting computer equipment based on
cost per component - $25,000 or less, $25,000.01 to $500,000, and $500,000.01
or more. Now there are two columns based on the type of component - Personal
Computers and Local Area Network (LAN) Equipment and Mainframes. Please take
care to ensure proper reporting of computer equipment in your Cost Detail of
Equipment (see instructions to property statements).
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