Introduced by Rep. Amanda Price (R) on April 24, 2012, to allow a property owner to transfer ownership of his or her property to a corporation (or other type of “limited liability company”) that the person owns, without triggering the Proposal A “pop-up,” in which the state equalized value (SEV, meaning market value) of transferred property becomes the basis for its property tax assessment, rather than the capped “taxable value” of the previous owner.
Referred to the House Tax Policy Committee on April 24, 2012.
Re: 2012 House Bill 5556 (Revise property transfer taxable value detail ) by GH-UpNorth on May 1, 2012 Although I did read the bill, I didn't understand all the "leagalese". When a property owned by an individual is transferred to a corporation or LLC (which is owned by multiple people including the original owner), or if more "owners" of the LLC are added at a later time, do all members of the LLC enjoy the tax increase avoidance benefit? For those, other than the original owner, this would be, in effect, a property transfer which should trigger a "pop-up" increase to SEV. If not, then this is just another example of corporate welfare - and a way to dodge what regular folks are required to pay. Furthermore, I'm wondering if a "pop-up" would be triggered for all the other members of the "corporation or LLC" when the original owner dies ? If this turns out to be a loophole tax dodge, I expect there will be lots of corporations springing up. I know there are already lots of "LLC ownerships" of expensive beachfront resort property around the state. If this law has good intentions, then let's make sure it's used as intended, and not abused by the wealthy looking for a special property transfer benefit.
2012 House Bill 5556 (Revise property transfer taxable value detail ) by admin on May 1, 2012 Introduced in the House on April 24, 2012