California Revenue and Taxation Code

§ 107.6

RTC § 107.6 Effective Jan 1, 1997Div. 1 · Part 1 · Ch. 1

Statute text

(a)The state or any local public entity of government, when entering into a written contract with a private party whereby a possessory interest subject to property taxation may be created, shall include, or cause to be included, in that contract, a statement that the property interest may be subject to property taxation if created, and that the party in whom the possessory interest is vested may be subject to the payment of property taxes levied on the interest.

(b)Failure to comply with the requirements of this section shall not be construed to invalidate the contract. The private party may recover damages from the contracting state or local public entity, where the private party can show that without the notice, he or she had no actual knowledge of the existence of a possessory interest tax. The private party is rebuttably presumed to have no actual knowledge of the existence of a possessory interest tax. In order to show damages, the private party need not show that he or she would not have entered the contract but for the failure of notice.

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Legislative history

Amended by Stats. 1996, Ch. 1087, Sec. 14. Effective January 1, 1997.