Pennsylvania Court Case Decision: Business Privilege Tax Refund Opportunity If you would be interested in participating on such a call, please e-mail Dara Bernstein at by C.O.B. NAREIT also is considering holding a conference call among potentially affected members, along with their advisors, to discuss the implications with respect to this case and strategy for the future. NAREIT may consider filing a separate letter as well, possibly along with another organization of which NAREIT is a member, California Business Properties Association (CBPA). California Taxpayers Association (Cal-Tax), of which NAREIT is a member, filed an amicus letter in support of repeal on Nov. 21) with California to request that the decision be 'de published,' a procedure that would treat the court case as non-precedential. Additionally, a number of third parties may file amicus briefs with the California Supreme Court (most likely due by early December) and/or plan to file a letter (due Nov. Ardmore Avenue, LLC has filed an appeal with the California Supreme Court. Further, this potential liability may be applicable not just in Los Angeles County, the local jurisdiction at issue in the case, but throughout California.

Because of the wording of this decision, many practitioners are concerned that, not only has the court changed the rules prospectively, but there may be potential retroactive tax liability exposure for any entity whose prior 'change in ownership' triggered a property tax assessment. 22, 2014) and held that a change in ownership of a legal entity will trigger liability for documentary transfer tax. Recently, however, a California Court of appeal issued 926 North Ardmore Avenue, LLC v. NAREIT thanks Michele Randall of EY and Sam Melehani of PwC for informing us of the following development.Īlthough a 'change in ownership' of an entity that owns California property triggers a property tax reassessment for property tax purposes, historically local jurisdictions in California have taken varying positions regarding whether such a change also would trigger documentary transfer (realty transfer) tax.

In a Potentially Retroactive Decision, California Appellate Court Holds that Change in Entity Ownership Can Trigger Transfer Tax Liability

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