251-261

REVENUE AND TAXATION CODE
SECTION 251-261




251.  (a) The board shall prescribe all procedures and forms
required to carry into effect any property tax exemption enacted by
statute or constitutional amendment.
   (b) (1) The procedures prescribed pursuant to subdivision (a)
shall be deemed satisfied by a qualified lessor by submission to the
assessor within 120 days of the commencement date of the lease, or
120 days after the effective date of the act adding this subdivision
to this section with respect to any existing lease, whichever is
later, information which may be requested by the board with respect
to the lease.
   (2) For purposes of this subdivision, "a qualified lessor" is a
lessor under a contract designated as a lease between that lessor and
an entity using property which qualifies for the property tax
exemption provided for by subdivision (d) or (e) of Section 3 of
Article XIII of the California Constitution under which the lessee
has the option at the end of the lease term of acquiring the property
described in the lease for one dollar ($1), or any other nominal
sum.
   (3) No filing or application for exemption shall thereafter be
required by a qualified lessor with respect to that lease unless the
option terms of the lease change.



252.  When making the first claim any person claiming the veterans'
exemption, or the spouse, legal guardian, or conservator of such
person, or one who has been granted a power of attorney by such
person, shall appear before the assessor, shall give all information
required and answer all questions in an affidavit prescribed by the
State Board of Equalization, and shall subscribe and swear to the
affidavit before the assessor. The assessor may require other proof
of the facts stated before allowing the exemption. In subsequent
years the person claiming the veterans' exemption, or the spouse,
legal guardian, or conservator of such person, or one who has been
granted a power of attorney by such person, may file the affidavit
under penalty of perjury by mail.
   Where a claim is filed by a legal guardian or conservator of a
person claiming the veterans' exemption, or one who has been granted
a power of attorney by such claimant, the person filing the affidavit
shall declare that he has sufficient knowlege of the financial
affairs of the claimant to give all information required and answer
all questions in the affidavit under penalty of perjury.



252.1.  Among other facts, the veterans' exemption affidavit shall
contain a statement, showing the claimant's residence. When the
affidavit is filed in a county other than the county of the claimant'
s residence, it shall be filed in duplicate and the assessor shall
transmit the duplicate copy to the assessor of the county of
residence.



253.  If, because of active military service of the United States in
time of war, sickness or other cause found to be unavoidable in the
judgment of the assessor, an applicant for the veterans' exemption is
unable to attend in person before the assessor, and no deputy is
available to go to the place where he is located, then the applicant
may make and subscribe the affidavit before any person authorized to
administer an oath. If, during time of war, the applicant is in
active military service of the United States or of any nation with
which the United States is allied, or is outside of the continental
limits of the United States, or if the person entitled to the
exemption is insane or mentally incompetent, a member of his
immediate family, his guardian, or legal representative, having
personal knowledge of the facts required to be set forth, may appear
before the assessor and may make and subscribe the affidavit on his
behalf.


253.5.  Any person claiming the homeowners' property tax exemption
shall submit to the assessor an affidavit, giving any information
required by the board. Such information shall include, but shall not
be limited to, the name of the person claiming the exemption, the
address of the property, and a statement to the effect that the
claimant owned and occupied the property as his principal place of
residence on the lien date, or that he owns and intends to occupy the
property as his principal place of residence on the next succeeding
lien date.
   A claim for the homeowners' exemption filed by the owner of a
dwelling, as defined in Section 218, once granted for the 1974-75
fiscal year or any fiscal year thereafter, shall remain in effect
until such time as title to the property changes, the owner does not
occupy the home as his principal place of residence on the lien date,
or the property is otherwise ineligible pursuant to the provisions
of Section 218.
   If the exemption is lost by the owner of the property for any
reason, he may file a new claim in the same manner as a new owner may
file one.


254.  Any person claiming the church, cemetery, college, exhibition,
welfare, veterans' organization, free public libraries, free
museums, aircraft of historical significance, tribal housing, or
public schools property tax exemption and anyone claiming the
classification of a vessel as a documented vessel eligible for
assessment under Section 227, shall submit to the assessor annually
an affidavit, giving any information required by the board.



254.2.  All property owned by the United States or any agency
thereof and used exclusively for migratory water fowl refuges, or
used for the promotion or protection of migratory water fowl or for
migratory water fowl public shooting grounds is exempt from taxation.
No affidavit need be filed for this exemption.



254.5.  (a) Claims for the welfare exemption and the veterans'
organization exemption shall be filed on or before February 15 of
each year with the assessor.
   The assessor may not approve a property tax exemption claim until
the claimant has been issued a valid organizational clearance
certificate pursuant to Section 254.6. Financial statements shall be
submitted only if requested in writing by the assessor.
   (b) (1) The assessor shall review all claims for the welfare
exemption to ascertain whether the property on which the exemption is
claimed meets the requirements of Section 214. The assessor shall
also review all claims for the veterans' organization exemption to
ascertain whether the property on which the exemption is claimed
meets the requirements of Section 215.1. In this connection, the
assessor shall consider, among other matters, whether:
   (A) Any capital investment of the owner or operator for expansion
of a physical plant is justified by the contemplated return thereon,
and required to serve the interests of the community.
   (B) The property on which the exemption is claimed is used for the
actual operation of an exempt activity and does not exceed an amount
of property reasonably necessary to the accomplishment of the exempt
purpose.
   (2) The assessor may institute an audit or verification of the
operations of the owner or operator of the applicant's property to
ascertain whether both the owner and operator meet the requirements
of Section 214.
   (c) (1) The assessor may deny a claim for the welfare exemption on
a property, notwithstanding that the claimant has been granted an
organizational clearance certificate by the board.
   (2) If the assessor finds that the claimant's property is
ineligible for the welfare exemption or the veterans' organization
exemption, the assessor shall notify the claimant in writing of all
of the following:
   (A) That the property is ineligible for the exemption.
   (B) That the claimant may seek a refund of property taxes paid by
filing a refund claim with the county.
   (C) That if the claimant's refund claim with the county is denied,
the claimant may file a refund action in superior court.
   (d) Notwithstanding subdivision (a), an applicant, granted a
welfare exemption and owning any property exempted pursuant to
Section 214.15 or Section 231, shall not be required to reapply for
the welfare exemption in any subsequent year in which there has been
no transfer of, or other change in title to, the exempted property
and the property is used exclusively by a governmental entity or by a
nonprofit corporation described in Section 214.15 for its interest
and benefit. The applicant shall notify the assessor on or before
February 15 if, on or before the preceding lien date, the applicant
became ineligible for the welfare exemption or if, on or before that
lien date, the property was no longer owned by the applicant or
otherwise failed to meet all requirements for the welfare exemption.
   Prior to the lien date, the assessor shall annually mail a notice
to every applicant relieved of the requirement of filing an annual
application by this subdivision.
   The notice shall be in a form and contain that information that
the board may prescribe, and shall set forth the circumstances under
which the property may no longer be eligible for exemption, and
advise the applicant of the duty to inform the assessor if the
property is no longer eligible for exemption.
   The notice shall include a card that is to be returned to the
assessor by any applicant desiring to maintain eligibility for the
welfare exemption under Section 214.15 or Section 231. The card shall
be in the following form:

   To all persons who have received a welfare exemption under Section
214.15 or Section 231 of the Revenue and Taxation Code for the ____
fiscal year.

   Question:  Will the property to which the exemption applies in the
____ fiscal year continue to be used exclusively by government or by
an organization as described in Section 214.15 for its interest and
benefit in the ____ fiscal year
                                  YES ___  NO ___
   Signature: ____________
   Title: ________________

   Failure to return this card does not of itself constitute a waiver
of exemption as called for by the California Constitution, but may
result in onsite inspection to verify exempt activity.

   (e) Upon any indication that a welfare exemption or veterans'
organization exemption on the property has been incorrectly granted,
the assessor shall redetermine eligibility for the exemption. If the
assessor determines that the property, or any portion thereof, is no
longer eligible for the exemption, he or she shall immediately cancel
the exemption on so much of the property as is no longer eligible
for the exemption.
   (f) If a welfare exemption or veterans' organization exemption on
the property has been incorrectly allowed, an escape assessment as
provided by Article 4 (commencing with Section 531) of Chapter 3 in
the amount of the exemption, with interest as provided in Section
506, shall be made, and a penalty shall be assessed for any failure
to notify the assessor as required by this section in an amount
equaling 10 percent of the escape assessment, but may not exceed two
hundred fifty dollars ($250).
   (g) Pursuant to Section 15640 of the Government Code, the board
shall review the assessor's administration of the welfare exemption
and the veterans' organization exemption as part of the board's
survey of the county assessment roll to ensure the proper
administration of the exemption.



254.6.  (a) An organization that intends to claim the welfare
exemption or veterans' organization exemption shall file with the
State Board of Equalization a claim for an organizational clearance
certificate.
   (b) The board staff shall review each claim for an organizational
clearance certificate for the welfare exemption to ascertain whether
the organization meets the requirements of Section 214 and shall
issue a certificate to a claimant that meets these requirements. The
board staff shall also review each claim for an organizational
clearance certificate for the veterans' organization exemption to
ascertain whether the organization meets the requirements of Section
215.1 and shall issue a certificate to a claimant that meets these
requirements. In this connection, the board staff shall consider,
among other matters, whether:
   (1) The services and expenses of the owner or operator (including
salaries) are excessive, based upon like services and salaries in
comparable public or private institutions.
   (2) The operations of the owner or operator, either directly or
indirectly, materially enhance the private gain of any individual or
individuals.
   (c) Any claim of any organization that files for an organizational
clearance certificate for the first time shall be accompanied by the
claimant's corporate identification number, mailing address, and all
of the following documents:
   (1) A certified copy of the financial statements of the
organization.
   (2) A certified copy of the articles of incorporation and any
amendments thereto, or in the case of any noncorporate fund or
foundation, its bylaws, articles of association, constitution, or
regulations and any amendments thereto.
   (3) A copy of a valid, unrevoked letter or ruling from either the
Franchise Tax Board or, in the alternative, the Internal Revenue
Service, that states that the organization qualifies as an exempt
organization under the appropriate provisions of the Bank and
Corporation Tax Law or the Internal Revenue Code.
   (d) (1) If the board staff determines that a claimant is not
eligible for an organizational clearance certificate, the board shall
notify the claimant of the ineligibility.
   (2) The claimant may file an appeal of the board staff's finding
of ineligibility with the board within 60 days of the date of mailing
of the notice of ineligibility. The appeal of the board staff's
finding shall be in writing and shall state the specific grounds upon
which the appeal is founded.
   (3) The board shall conduct a hearing on the appeal in accordance
with any rules of notice, procedure, and briefing as the board shall
prescribe. The parties to the hearing or proceeding shall be the
board staff and the claimant appealing the finding of ineligibility.
The board staff and the claimant may agree in writing to submit the
matter to the board for a decision without a hearing. The board shall
provide written findings and conclusions or a written decision to
support its decision.
   (e) (1) Once granted, an organizational clearance certificate for
the welfare exemption remains valid until the board staff determines
that the organization no longer meets the requirements of Section
214. Once granted, an organizational clearance certificate for the
veterans' organization exemption remains valid until the board staff
determines that the organization no longer meets the requirements of
Section 215.1.
   (2) If the board staff determines that the organization no longer
meets the requirements for an organizational clearance certificate,
the board staff shall revoke the certificate and notify the claimant
and each county assessor of the revocation.
   (3) The organization may file an appeal of the board staff's
revocation with the board within 60 days of the date of mailing of
the notice revocation. The appeal of the revocation shall be in
writing and shall state the specific grounds upon which the appeal is
founded.
   (4) The board shall conduct a hearing on the appeal in accordance
with any rules of notice, procedure, and briefing as the board shall
prescribe. The parties to the hearing or proceeding shall be the
board staff and the claimant appealing the finding of ineligibility.
The board staff and the claimant may agree in writing to submit the
matter to the board for decision without hearing. The board shall
provide written findings and conclusions or a written decision to
support its decision.
   (f) Pursuant to Section 15618 of the Government Code, the board
may institute an audit or verification of an organization to
ascertain whether the organization meets the requirements of Section
214.



255.  (a) Affidavits required for exemptions named in this article,
except the homeowners' exemption, shall be filed with the assessor
between the lien date and 5 p.m. on February 15.
   (b) Affidavits for the homeowners' exemption except as otherwise
provided in Sections 255.1, 255.2, and 275, shall be filed with the
assessor any time after the claimant becomes eligible but no later
than 5 p.m. on February 15.
   (c) Notwithstanding the provisions of subdivision (a), any
claimant who has been found ineligible for the church exemption or
the religious exemption may file an affidavit for a welfare
exemption. Affidavits for the welfare exemption filed pursuant to
this subdivision shall be filed within 15 days from the date of
notification by the assessor of the claimants' ineligibility for the
church exemption or the religious exemption.



255.1.  The assessor, whenever in his judgment good cause exists,
may grant a reasonable extension of time for filing a claim for the
homeowners' property tax exemption to any claimant who has filed a
timely claim, but the claim is otherwise defective because it lacks
either any of the required information or the signature of the
claimant.
   Only one extension shall be allowed to such claimant for any one
filing period. No extension shall be more than six months from the
due date provided for filing the claim, unless the assessor does not
find and notify the claimant of the defect within a reasonable time
to allow resubmission of the defective claim as corrected before the
expiration of the six-month extension, in which case the assessor
shall extend the permissible period for filing no more than three
months from the time the defect or defects are found and the claimant
is notified.



255.2.  Notwithstanding Section 255 of the Revenue and Taxation
Code, any veteran who is filing for the veteran's exemption on his or
her principal place of residence for the first time or who was found
eligible for that exemption on his or her principal place of
residence in the immediately preceding year and whose claim is timely
filed but disallowed for the current year may, if otherwise
qualified for the homeowner's exemption, file for the homeowner's
exemption as provided herein.
   The assessor shall notify those applicants he or she finds
ineligible for the veteran's exemption of his or her finding and
shall inform them that they have 15 days from the date of the notice
to file for the homeowner's exemption. The failure of the assessor to
provide the notice required by this section shall extend the filing
period for those not notified to the next lien date.



255.3.  For the 1998-99 fiscal year and each fiscal year thereafter,
the assessor shall on or before January 15 mail a claim form for the
homeowners' exemption to a person acquiring title to, and recording
his or her ownership of an eligible dwelling after the immediately
preceding lien date and before the lien date of the calendar year of
the claim. The failure of a person to receive a claim form shall not,
however, excuse the person from timely filing of the required
affidavit.



255.6.  The assessor shall verify the eligibility of each claimant
who is receiving a homeowners' exemption to continue to receive such
an exemption in accordance with rules issued by the board to provide
for a periodic audit and for the establishment of a control system
for the homeowners' exemption claims.


255.7.  Whenever a change of ownership is recorded in the county
recorder's office, the county recorder shall provide the assessor
with a copy of the transfer of ownership document as soon as
possible.


255.8.  In counties having 10 percent or more persons who are of
Spanish origin according to the most recent federal decennial census,
claim forms and accompanying instructions required to be sent to
homeowners by Section 255.3 shall be in English and Spanish. Claim
forms and instructions in Spanish may also be sent or made available
in any other county, at the discretion of the county assessor.



256.  (a) The affidavit for church exemption shall show that:
   (1) The building and equipment are used solely for religious
worship.
   (2) The land claimed as exempt is required for the convenient use
of the building.
   (b) Each year before the lien date, county assessors shall mail a
claim form for the church exemption to all recipients of such
exemption in the prior year, except where the prior recipient has
transferred title to the property since the prior lien date.



256.5.  The affidavit for the cemetery exemption shall show that:
   (a) The property is used or held exclusively for the burial or
other permanent deposit of the human dead or for the care,
maintenance or upkeep of such property or such dead, and
   (b) The property is not used or held for profit.



256.6.  (a) (1) Prior to the lien date, the assessor shall annually
mail a notice to every person or entity that received, in the
immediately preceding fiscal year, the exemption provided by Section
204.
   (2) The board shall prescribe the form for the annual notice
described in paragraph (1), which form shall specify the following:
   (A) The circumstances under which the property may be disqualified
from exemption.
   (B) That the person or entity has a duty to inform the assessor if
the property no longer qualifies for the exemption.
   (b) At the same time the notice described in subdivision (a) is
mailed, the assessor shall include with that notice a card that may
be returned to the assessor by the person or entity receiving the
notice, which card shall be in the following form:

   To all persons and entities that have received a nonprofit
cemetery exemption for the ____ fiscal year.
   QUESTION: Will the property to which the exemption applied in the
____ fiscal year continue to be used or held exclusively for the
burial or other permanent deposit of the human dead or for the care,
maintenance, or upkeep of that property or those dead in the ____
fiscal year
   ___ yes   ___ no
   Signature: ____________ Title: __________

   Failure to return this card does not constitute a waiver of this
exemption as specified by the California Constitution, but may result
in an onsite inspection by the assessor to verify any exempt
activity.



256.7.  (a) Notwithstanding Sections 254, 256.5, and 256.6, an
affidavit claiming the cemetery exemption, as provided for in
subdivision (g) of Section 3 of Article XIII of the California
Constitution and Section 204, is not required to be filed in order to
receive the exemption for any cemetery that exists, or is discovered
to exist, in the unincorporated area of a county for which the
assessor is unable to identify the legal cemetery authority, as
defined in Section 7018 of the Health and Safety Code, that may by
law claim the exemption for that cemetery, if both of the following
apply:
   (1) The cemetery was used by residents of the state prior to the
year 1900.
   (2) The cemetery is no longer used for current or future
interments.
   (b) Any tax, penalty, or interest imposed upon a cemetery subject
to this section shall be canceled pursuant to Article 1 (commencing
with Section 4985) of Chapter 4 of Part 9, as if it had been levied
or charged erroneously.



257.  (a) Any person claiming the religious exemption shall submit
to the assessor an affidavit giving specific information relating to
property tax exemption.
   (b) The affidavit shall show that:
   (1) The building, equipment, and land are used exclusively for
religious purposes.
   (2) The land claimed as exempt is required for the convenient use
of the building.
   (3) The property is owned by an entity organized and operating
exclusively for religious purposes.
   (4) The entity is nonprofit.
   (5) No part of the net earnings inures to the benefit of any
private individual.
   (c) Any exemption granted pursuant to a claim filed in accordance
with this section, once granted, shall remain in effect until that
time that title to the property changes or the property is no longer
used for exempt purposes. Any person who is granted an exemption
pursuant to a claim filed in accordance with this section shall
notify the assessor by February 15 if the property becomes ineligible
for the exemption.
   (d) Upon any indication that a religious exemption has been
incorrectly allowed, the assessor shall make a redetermination of
eligibility for the religious exemption. If the assessor determines
that the property or any portion thereof is no longer eligible for
the exemption, he or she shall immediately cancel the exemption on so
much of the property as is no longer eligible for exemption.
   If a religious exemption has been incorrectly allowed, an escape
assessment as allowed by Article 4 (commencing with Section 531) of
Chapter 3 in the amount of the exemption with interest as provided in
Section 506 shall be made, together with a penalty for failure to
notify the assessor, where applicable, in the amount of 10 percent of
the assessment, but may not exceed two hundred fifty dollars ($250)
in tax liability.


257.1.  For the 1983-84 fiscal year and fiscal years thereafter, the
assessor shall annually, prior to the lien date, mail a notice to
every person who received the religious exemption for the previous
fiscal year.
   The notice shall be in a form and contain that information which
the board may prescribe, and shall set forth the circumstances under
which the property may no longer be eligible for exemption and advise
the person of the duty to inform the assessor if the property is no
longer eligible for exemption.
   The notice shall include a card which is to be returned to the
assessor by any person who desires to maintain eligibility for the
religious exemption. That card shall be in the following form:

  To all persons who have received a religious
  exemption for the
  ____ fiscal year.
  QUESTION: Will the property to which the
  exemption applies
  in the ____ fiscal year continue to be used
  exclusively for
  religious purposes in the ____ fiscal year?
                  Yes ____   No____
  Signature: __________  Title: __________
  Failure to return this card does not of itself
  constitute a waiver of
  exemption as called for by the California
  Constitution, but may
  result in onsite inspection to verify exempt
  activity.



258.  The affidavit for the college exemption shall show that:
   (a) The educational institution is of collegiate grade and is not
conducted for profit.
   (b) The grounds for which exemption is claimed are those within
which its buildings are located.
   (c) The property for which exemption is claimed is used
exclusively for the purposes of education.
   Any additional proof of the facts stated may be required by the
assessor.
   The exempt grounds need not be contiguous or in one tract.




259.  The affidavit for the exhibition exemption shall state the
facts showing that the property comes within all the descriptions
entitling it to the exemption.



259.5.  The claim for the welfare exemption shall show that the
property use requirements entitling the property to the exemption are
met, and that the claimant has a valid organizational clearance
certificate issued pursuant to Section 254.6.




259.7.  The claim for the veterans' organization exemption shall
show that the property use requirements entitling the property to the
exemption are met, and that the claimant has a valid organizational
clearance certificate issued pursuant to Section 254.6.



259.8.  The affidavit for the free public libraries exemption shall
indicate the extent to which the property is open to the public,
whether or not any admission or user charge is made for the use of
library books, periodicals or facilities and the extent (if any) to
which sales or business activites are conducted on the premises.




259.9.  The affidavit for the free museums exemption shall indicate
whether or not any admission or user charge is made to those viewing
the museum contents and the extent (if any) to which sales or
business activities are conducted on the premises.




259.10.  The affidavit for the public schools exemption shall show:
   (a) The owner's name and the name of the school within the public
school system that is using the property exclusively for public
school purposes.
   (b) The terms of the agreement by which the public school obtained
the use of the property. When the agreement is in writing, a copy of
the document shall accompany the affidavit.




259.11.  The affidavit for the aircraft of historical significance
exemption shall show that both the property and the owner meet all
the requirements entitling the property to the exemption.



259.13.  (a) Affidavits for the tribal housing exemption shall be
filed on or before February 15 of each year with the assessor.
Affidavits of claimants shall be accompanied by:
   (1) The documents required by subdivision (c) of Section 237.
   (2) A description of the property for which the exemption is
claimed, including the entire project property and the portion for
which exemption is claimed. If the property includes units which do
not qualify for the exemption, the description must list the
qualifying and nonqualifying units.
   (3) An annual affidavit by the claimant that the property for
which exemption is claimed meets the income and rental requirements
for the exemption and listing the number of occupants in each unit
for which the exemption is claimed and the income and rental limits
applicable for each household. Annual tenant affidavits verifying
household size and income should be on file with the claimant for
each exempt unit.
   (b) Once the exemption has been granted in a particular county to
a particular tribe or tribally designated housing entity, documents
establishing that the tribe is federally recognized and that the
housing entity has been designated by the tribe need not be
resubmitted for additional years or additional properties of that
tribe or tribally designated housing entity in the same county.
   (c) Once the exemption has been granted for a particular property,
it is not necessary to resubmit documents establishing that there is
a legally binding restriction on the use of that property in
succeeding years for as long as the legally binding restriction is in
effect.
   (d) Upon any indication that a tribal housing exemption has been
incorrectly allowed, the assessor shall make a redetermination of
eligibility for the tribal housing exemption. If the assessor
determines that the property or any portion thereof is no longer
eligible for the exemption, he or she shall immediately cancel the
exemption on so much of the property as is no longer eligible for
exemption.
   (e) If a tribal housing exemption has been incorrectly allowed, an
escape assessment as allowed by Article 4 (commencing with Section
531) of Chapter 3 in the amount of the exemption with interest as
provided in Section 506 shall be made, together with a penalty for
failure to notify the assessor, where applicable, in the amount of 10
percent of the assessment.


260.  If any person, claiming any exemption named in this article,
fails to follow the required procedure, the exemption is waived by
the person.


261.  (a) Except as otherwise provided in subdivisions (b) and (c),
as a prerequisite to the allowance of either the veterans' or welfare
exemption with respect to taxes on real property, the interest of
the claimant in the property must be of record on the lien date in
the office of the recorder of the county in which the property is
located. Failure of the claimant to establish the fact of such
recordation to the assessor constitutes a waiver of the exemption.
   (b) A claimant for the veterans' exemption who on the lien date
has an interest in real property consisting of an unrecorded contract
of sale may in lieu of the recordation pursuant to subdivision (a)
furnish or show the contract to the assessor and file an affidavit
with the assessor stating all of the following:
   (1) That he purchased the real property pursuant to such
unrecorded contract of sale.
   (2) That under such unrecorded contract of sale he is obligated
and responsible for the payment of the taxes.
   (c) A claimant for the welfare exemption which on the lien date
has a possessory interest in publicly owned land, owns water rights,
or owns improvements on land owned by another may in lieu of the
recordation pursuant to subdivision (a) file a copy of the document
giving rise to that possessory interest or water rights or file a
written statement attesting to the separate ownership of those
improvements with the assessor. That document copy or written
statement shall not be required annually following the year in which
it has been filed but shall remain in effect until such time as that
possessory interest terminates or ownership of the water rights or
improvements transfers.