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Assessable Transfer of Interest
Section 12-37-3150(A)
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An assessable transfer of interest: A transfer of an
existing interest in real property that subjects the real
property to an appraisal.
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A property that is determined to be an assessable transfer
of interest will be revalued for the following tax year.
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The following year’s tax value could best be estimated by
using the sales price of the property.
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Note that properties transferred prior to January 1, 2007,
are subject to a cap of 15% on the reassessment increase
within a 5 year period. (improvements exempt)
- If the property is transferred after January 1, 2007, it
will be reassessed without the 15% increase cap in the transfer
year (for the tax value for the following year).
- Assessable Transfers of Interest
Section 12-37-3150(A)
- Conveyance by deed
- Conveyance by land contract
- Conveyance to a trust
- Conveyance by distribution from a trust
- Distribution under a will or intestate succession
- Conveyance by lease if duration and all options is more
than 20 years or the lease contains bargain purchase option
- Transfer of more than 50% ownership interest in a
corporation, partnership, sole proprietorship, LLC, LLP or
other legal entity
- Change in use of real property resulting from zoning
change
- Passage of 20 years since application of cap or
assessable transfer of interest for real property owned by a
publicly held entity whose stock is traded on a regulated
exchange, a pension fund or similar entity.
- Transfers Not Considered An Assessable Transfer of Interest
Section 12-37-3150(B)
- Transfers not subject to federal income tax. Example:
Transfers between spouses or
transfers incident to divorce.
- Transfer of life estate or life lease retained by the
transferor
- Transfer through foreclosure or forfeiture
- Transfer by redemption of property sold at a delinquent
tax sale
- Conveyance to a trust if settler remains beneficiary of
the trust
- Transfer for security or assignment or discharge of a
security interest
- Transfer among members of an affiliated group
- Transfer among corporation, partnerships, LLC, LLP or
other legal entity if entities are commonly owned.
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