Empire Properties v. County of Los Angeles

Taxpayer brought suit to seek a refund of property taxes. It claimed the property was exempt from reassessment under Revenue and Taxation Code section 63.1 as the transfer was between a parent and his children. The trial court found for the taxpayer.

The County of Los Angeles (County) appeals from the judgment and asserts numerous bases why the judgment is erroneous as a matter of law. It claims a “change of ownership” in the real property occurred at the father’s death in 1987 and this event triggered the three-year statute of limitations for claiming a parent/child exemption. Thus, the County argues the taxpayer’s claim for an exemption from reassessment on the real property based on the parent/child exemption filed in 1991, and more than four years after the father’s death, was untimely. In addition, the County claims the taxpayer is not entitled to a refund because it never actually filed a claim for refund. The County also claims this action is invalid because the parent/child exemption from reassessment is only available for transfers of real property between natural persons, and in this case the transferee is a legal entity and not a natural person.

We conclude a…