California State Assessor Forms: What They Are, When to File, and How to Fill Them Out

Key Takeaways

• California businesses are required to file a Business Property Statement (Form 571-L) with their county assessor each year by April 1 to report personal property used in the business. Failing to file results in a 10% penalty added to the assessed value.
• Business personal property is assessed on original cost. The county applies its own depreciation schedule, which is often less favorable than what appears on your books.
• When real property transfers, the Preliminary Change of Ownership Report (BOE-502-A) must be filed at the time of recording. This form determines whether the transfer triggers a Prop 13 reassessment.
• If ownership of a legal entity changes by more than 50%, the Statement of Change in Control and Ownership (BOE-100-B) must be filed within 90 days. This can trigger reassessment of any real property the entity owns.
• If you disagree with an assessment, you have the right to appeal. In most California counties, appeals must be filed by September 15 or within 60 days of the assessment notice, whichever is later.

California's county assessors are responsible for valuing property for property tax purposes. Most business owners know this applies to real estate. What catches many off guard is that it also applies to the equipment, computers, furniture, and machinery used in the business every day.

County assessors operate independently from the Franchise Tax Board and the IRS. Filing your income taxes correctly does not satisfy your obligations to the assessor. These are separate systems with separate forms and separate deadlines.

This article covers the most common forms California business owners encounter with the county assessor, what each one is for, and what to include when filling them out.

What the County Assessor Does

California's 58 counties each have an elected or appointed assessor responsible for determining the taxable value of property within the county. That value is used to calculate the annual property tax bill, which funds local schools, roads, and county services.

The assessor's jurisdiction covers two categories:

• Real property: Land and structures permanently attached to it, including buildings and improvements.
• Business personal property: Tangible movable assets used in the operation of a business, including equipment, computers, furniture, trade fixtures, and machinery.

Unlike real property, which is generally reassessed only when it changes ownership or undergoes new construction under Proposition 13, business personal property is reassessed annually based on what the business self-reports. That is why the annual filing obligation exists.

Form 571-L: Business Property Statement

What it is

Form 571-L is the annual filing California businesses use to report all personal property used in the business to their county assessor. The assessor uses this information to determine the taxable assessed value of the business's personal property for the upcoming tax year.

Who files it

Most businesses that own or use tangible personal property in California are required to file. This includes sole proprietors, partnerships, LLCs, S-Corps, and corporations. If the assessor sends you a 571-L, you are required to file. Even if you do not receive one, the obligation exists if you own qualifying business personal property.

Many California counties offer an exemption for businesses whose total personal property value falls below a threshold, typically around $100,000. Contact your county assessor to confirm whether the exemption applies to your business.

Deadline

April 1 each year. If April 1 falls on a weekend or holiday, the deadline moves to the next business day. There is no automatic extension.

Penalty for late or non-filing

A 10% penalty is added to the assessed value if the form is filed after the deadline or not filed at all. If the assessor determines failure to file was willful, additional penalties may apply.

What to include

The 571-L requires you to list all personal property owned or used by the business as of January 1 of the assessment year. Key categories include:

• Equipment and machinery (manufacturing, food service, office, and trade equipment)
• Computers, servers, and IT hardware
• Office furniture and fixtures
• Leasehold improvements installed by the tenant
• Supplies on hand as of January 1
• Property you lease from others (you must report it even though you do not own it)

For each item or category, you report the original cost and the year of acquisition. The assessor then applies a depreciation schedule set by the State Board of Equalization. This schedule operates independently from the depreciation schedule on your tax return, and the values will differ.

A note on leased equipment

If you lease equipment for use in the business, you are still required to report it on the 571-L. The assessor coordinates with the lessor on the tax payment, but the reporting obligation falls on the business using the equipment.

BOE-502-A: Preliminary Change of Ownership Report

What it is

The Preliminary Change of Ownership Report (PCOR) is filed when real property transfers. It gives the assessor the information needed to determine whether the transfer triggers a Prop 13 reassessment. Under Proposition 13, real property is generally reassessed to current market value when it changes ownership. The PCOR is how the assessor evaluates whether that applies.

Who files it

The buyer or transferee files the PCOR. In most residential and commercial transactions, escrow or title companies handle this as part of the closing process. If you are involved in a property transfer outside of a traditional escrow, the obligation falls on the transferee to file independently.

Deadline

The form must be filed at the time the deed or transfer document is recorded with the county recorder. If filed after recording, a $20 fee applies.

What to include

• The nature of the transfer (sale, gift, inheritance, trust transfer, or business reorganization)
• The purchase price or other consideration paid
• The relationship between buyer and seller
• Whether the transfer qualifies for a reassessment exclusion (parent-child transfers, spouse-to-spouse transfers, and certain business reorganizations may qualify)

Being accurate here matters. If the assessor disagrees with how the transfer is characterized, they may initiate a change of ownership review and assess back taxes with interest.

BOE-100-B: Statement of Change in Control and Ownership of Legal Entities

What it is

When the ownership of a legal entity, LLC, corporation, or partnership, changes by more than 50% cumulatively, the entity is required to file the Statement of Change in Control and Ownership. This alerts the county assessor to review whether any real property owned by the entity is subject to reassessment.

In California, a change in ownership of a legal entity can trigger the same property tax reassessment consequences as a direct transfer of real property. This is one of the most commonly overlooked compliance requirements in business transactions.

Who files it

The legal entity that experienced the change in control or ownership files the form. The obligation sits with the entity, not with the individual buyer or seller.

Deadline

Within 90 days of the date the change in control or ownership occurred.

What to include

• A description of the entity and any real property it owns in California
• The nature and date of the change in ownership or control
• The names and ownership percentages of the new controlling interests
• Any applicable exclusions

Why this matters in transactions

When a business is sold or a partner acquires a controlling interest, attention is typically focused on the income tax and legal aspects of the transaction. The BOE-100-B is easy to miss. If the entity owns real property and the filing is not made, the assessor can initiate a reassessment retroactive to the date of the change, with interest accruing on any additional taxes owed.

Appealing an Assessment

If you believe the assessor has overvalued your property, you have the right to appeal. Assessment appeals are heard by the county's Assessment Appeals Board, which is independent of the assessor's office.

Filing deadline

In most California counties, the deadline to file an appeal is September 15 of the assessment year, or within 60 days of the date on the assessment notice, whichever is later. Missing this deadline typically forfeits your right to appeal for that year.

Informal review

Many counties offer an informal review process where you can present evidence directly to the assessor before filing a formal appeal. This can resolve straightforward valuation disputes without a formal hearing.

Formal appeal

A formal appeal requires filing an Application for Changed Assessment with the county's Assessment Appeals Board, paying any required filing fee, and appearing at a scheduled hearing.

What to bring

For business personal property appeals: original purchase invoices, market value data for comparable equipment, and documentation showing items have been disposed of or are no longer in use.

For real property appeals: comparable sales data, an independent appraisal, and documentation of any property characteristics the assessor may not have accounted for.

Why This Matters

County assessors operate on fixed deadlines and do not send reminders for all filing obligations. Form 571-L arrives in the mail for most businesses each January or February. The BOE-100-B and BOE-502-A obligations arise from specific events, and no form will arrive automatically to alert you.

Penalties are applied automatically and are not routinely waived. A 10% penalty on business personal property, or a retroactive reassessment triggered by a missed BOE-100-B, can represent a meaningful and avoidable cost.

If you have recently acquired property, changed business ownership, or have not reviewed your county assessor filings in more than a year, a conversation with your accountant is a reasonable next step.

The team at Nguyen and Company works with California small business owners on property tax compliance as part of their ongoing accounting relationship. If you have questions about your assessor filings or want to confirm you are current, reach out and we can take a look together.

Frequently Asked Questions

Does my business have to file a 571-L if we only lease our equipment and do not own it?

Yes. If you use leased equipment in your California business, you are still required to report it on your 571-L. The assessor coordinates with the lessor to determine who pays the tax, but the reporting obligation falls on the business using the equipment. Your lease agreement may specify whether the lessor or lessee is responsible for the resulting tax.

What happens if I have disposed of equipment that appeared on my prior year 571-L?

You should remove disposed items from your 571-L in the year following disposal. If the assessor continues to assess tax on items you no longer own or use, you can request a correction with supporting documentation such as a bill of sale or disposal record. This is a common source of over-assessment that is worth reviewing before you file each year.

Our LLC recently added a new partner. Do we need to file a BOE-100-B?

It depends on whether the new partner's ownership interest, combined with any prior changes in ownership during the preceding three years, results in a cumulative change of more than 50%. If that threshold is crossed, the BOE-100-B must be filed within 90 days. If you are unsure whether the threshold has been reached, review the ownership history with your accountant before the 90-day window closes.

Can the county assessor audit our 571-L filing?

Yes. Assessors have the authority to audit 571-L filings and request documentation including purchase invoices, depreciation schedules, and disposal records. Audits are more common for businesses with significant personal property values. Maintaining organized records of all asset purchases and disposals makes an audit easier to manage and reduces the risk of disputed assessments.

Internal Note - Sources

• Business Property Statement requirements and penalties: California Revenue and Taxation Code Sections 441 and 463; Board of Equalization guidance on business personal property assessment.
• Preliminary Change of Ownership Report: California Revenue and Taxation Code Sections 480 through 480.6; BOE Form BOE-502-A instructions.
• Statement of Change in Control and Ownership of Legal Entities: California Revenue and Taxation Code Sections 64 and 480.1; BOE Form BOE-100-B instructions.
• Assessment appeals process and deadlines: California Revenue and Taxation Code Sections 1603 through 1605; State Board of Equalization Assessment Appeals guidance.
• Proposition 13 reassessment rules: California Constitution Article XIIIA; Revenue and Taxation Code Section 60 et seq.