Property reassessments with changes in ownership interest can trigger increases taxes.
Client’s property value was reassessed from $103,775 to $450,000. The reassessment was triggered by some errors committed by a less experienced attorney in establishing his family limited partnership. The partnership was structured with the client and his spouse having 90% ownership interest and each of his two children having 5%. The property, however, was owned 100% by the client and his spouse. He transferred it to the partnership, which changed the ownership interest of the property, thereby triggering a reassessment.
We showed that the client treated the property as though it was 100% owned by him and his spouse over the two year period in question, based on tax returns and maintenance activities.
Assessment reversed, saving $6,200 in property tax per year.