ADMINISTRATIVE REMEDIES.

Taxpayers must exhaust their administrative remedies when appealing the assessor’s determination that a change in ownership occurred by either: (1) filing with the appeals assessment board (AAB) a timely application for changed assessment that is also designated as a claim for refund as provided by Sec. 1603; or (2) filing a timely application for changed assessment with the AAB and a separate, timely claim for refund under Sec. 5907. The failure to seek such remedies will result in the taxpayer being precluded from challenging the new base year value. Further, the transfer of a life estate and remainder interests upon the death of the trustor of a revocable trust constitutes a change in ownership. Cal. Code Regs. 18 §462.060 remains valid and the creation of a life estate in real property is a change in ownership unless the estate is for the transferor or the transferor’s spouse, regardless of whether additional interests are also transferred. [California State Board of Equalization Letter to Assessors No. 2010/034, 07/12/2010.]