What events will trigger the loss of the 10% cap?
The protection of the 10% cap is lost when there is a change of ownership or control. This includes the transfer of the property by sale, foreclosure, or other means (other than tranfers to correct an error, transfers between spouses, and transfers between legal and equitable title). If the property is owned by a corporation, LLC, partnership or other such entity, the cap will also be lost upon a transfer of more than 50% of the ownership in that entity. Thus, a stock transfer may also trigger loss of the cap and re-assessment of the property at fair market value. However, in 2010, the legislature amended the statute to create an exception for publicly-traded companies if the transfer of the shares occurs through the buying and selling of shares on a public exchange. For nonresidential property, the cap can also be lost by adding an improvment that increases the value of the property by at least 25 percent. Thus, while more routine changes, additions and improvements may only slightly
