Durante v. Co. of Santa Clara

Filed 11/30/18

CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SIXTH APPELLATE DISTRICT

MIMI K. KARAS DURANTE, H041620 (Santa Clara County Plaintiff and Appellant, Super. Ct. No. 1-12-CV-217681)

v.

COUNTY OF SANTA CLARA,

Defendant and Respondent.

Plaintiff Mimi Karas Durante appeals from a defense judgment after trial in a tax refund action she brought against the County of Santa Clara. Plaintiff alleged an entitlement to a property tax refund because the County incorrectly determined there was a change in ownership of a house she co-owns with her sister, which triggered a reassessment of its value. The trial court concluded there was a change in ownership which allowed for reassessment. We find no error in that decision and will affirm the judgment. I. BACKGROUND Plaintiff and her sister inherited a house in San Jose when their mother died in 2003. They took title as tenants-in-common. A recorded deed reflected that each owned an undivided 50 percent interest in the property. Plaintiff lived in the home; her sister did not. In 2009, plaintiff’s sister granted her a life estate in the 50 percent interest that plaintiff did not already own. The deed reflecting that transfer was recorded. The 2009

transfer resulted in plaintiff having sole ownership rights for the rest of her life, with her sister regaining a 50 percent interest in the property on plaintiff’s death. Based on the 2009 transfer, the County reassessed the property’s value under a statute allowing for recalculation of a property’s tax basis upon a change in ownership. The new valuation was significantly higher, resulting in a commensurately higher property tax bill. Plaintiff asked the County for a revised assessment on the ground that the creation of a life estate did not effect a change in ownership. After conducting an administrative hearing, the County denied the request. Plaintiff then sued the County seeking a property tax refund. The complaint alleged a refund was due based on no change in ownership. The case was tried to the court, with the parties submitting documentary evidence only.1 The trial court issued a statement of decision containing its findings and conclusions. The court found that the 2009 deed granting plaintiff a life estate constituted a change in ownership and the reassessment was in conformity with the law. Judgment was entered for the County. II. DISCUSSION Plaintiff’s lawsuit is authorized by Revenue and Taxation Code section 5140, which allows a person who overpaid property tax to bring a refund action in superior court, if the agency that collected the tax refused to refund the money after proper request. Plaintiff’s suit was resolved by trial and the judgment is based on a statement of decision. In reviewing a judgment based upon a statement of decision following a bench trial, we review questions of law de novo, and we review the trial court’s findings of fact for substantial evidence. “Under this deferential standard of review, findings of fact are liberally construed to support the judgment and we consider the evidence in the light most favorable to the prevailing party, drawing all reasonable inferences in support of the findings.” (Thompson v. Asimos (2016) 6 Cal.App.5th 970, 981.)