June 18, 2018

June 18, 2018

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California Supreme Court Declines To Rehear Documentary Transfer Tax Appeal

In June, I wrote about the California Supreme Court’s disappointing decision in 926 N. Ardmore Ave. v. County of L.A., 2017 Cal. LEXIS 4768 (Cal. 2017).  See California Supreme Court Affirms Novel M&A Tax. Readers may recall that the Supreme Court applied the concept of a change in ownership for purposes of triggering property tax reassessments under Proposition 13 to California’s documentary transfer tax.  While this has some very superficial appeal, it is an unnatural yoking of two very different laws.  When the taxpayer requested a rehearing, I and several others submitted amicus letters in support.  Obtaining a rehearing is very much a long shot, but as they say, “you miss every shot that you don’t take”.  Regrettably, the Supreme Court had no appetite to revisit the issues.  Perhaps the next challenge will be in the federal courts.


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About this Author

Keith Paul Bishop, Corporate Transactions Lawyer, finance securities attorney, Allen Matkins Law Firm

Keith Paul Bishop is a partner in Allen Matkins' Corporate and Securities practice group, and works out of the Orange County office. He represents clients in a wide range of corporate transactions, including public and private securities offerings of debt and equity, mergers and acquisitions, proxy contests and tender offers, corporate governance matters and federal and state securities laws (including the Sarbanes-Oxley Act of 2002 and the Dodd-Frank Act), investment adviser, financial services regulation, and California administrative law. He regularly advises clients...