Chapter 3.10
REAL PROPERTY DOCUMENTARY TRANSFER TAX
Sections:
3.10.020 Short title – Adoption.
3.10.050 Exemption – Instruments in writing to secure debts.
3.10.060 Exemption – Federal or state political subdivisions.
3.10.070 Exemption – Conveyance to make effective plan of reorganization or adjustment.
3.10.080 Exemption – Order of Securities and Exchange Commission.
3.10.090 Exemption – Partnerships.
3.10.100 Exemption – Foreclosures.
3.10.110 Exemption – Marital property assets in dissolution or separation proceedings.
3.10.120 Exemption – Inter vivos gifts and trusts.
3.10.010 Findings.
A. On July 1, 2001, the city of Aliso Viejo became a general law city with the power and duty to enact all local police, sanitary and other ordinances not in conflict with general law, and to provide general law municipal services to the residents of Aliso Viejo.
B. The city will incur substantial costs in providing municipal services, parts of which costs can be paid through real property documentary transfer taxes.
C. The local agency formation commission of the county of Orange has, relative to the incorporation of the city of Aliso Viejo, authorized as city taxes the sales and use tax, transient occupancy tax, the real property documentary transfer tax and other general taxes presently imposed by the county at the same rate as imposed by the county and using the same manner of collection as the county.
D. The voters of the city of Aliso Viejo approved the incorporation of the city of Aliso Viejo and the continuance of the above-described county taxes as city taxes. [Ord. 2010-126 § 1 (Exh. A); Ord. 2001-009 § 1].
3.10.020 Short title – Adoption.
This chapter shall be known as the uniform real property documentary transfer tax ordinance of the city of Aliso Viejo. It is adopted pursuant to the authority contained in California Revenue and Taxation Code Division 2, Part 6.7 (Section 11901 et seq.). [Ord. 2010-126 § 1 (Exh. A); Ord. 2001-009 § 2].
3.10.030 Imposition – Rates.
There is hereby imposed on each deed, instrument or writing by which any lands, tenements, or other realty sold within the city of Aliso Viejo shall be granted, assigned, transferred or otherwise conveyed to, or vested in, the purchaser or purchasers, or any other person or persons, by his or their direction, when the consideration or value of the interest or property conveyed (exclusive of the value of any lien or encumbrances remaining thereon at the time of sale) exceeds $100.00, a tax at the rate of $0.275 for each $500.00 or fractional part thereof. [Ord. 2010-126 § 1 (Exh. A); Ord. 2001-009 § 3].
3.10.040 Payment.
Any tax imposed pursuant to AVMC 3.10.030 shall be paid by any person who makes, signs or issues any document or instrument subject to the tax, or for whose use or benefit the same is made, signed or issued. [Ord. 2010-126 § 1 (Exh. A); Ord. 2001-009 § 4].
3.10.050 Exemption – Instruments in writing to secure debts.
The tax imposed pursuant to this chapter shall not apply to any instrument in writing given to secure a debt. [Ord. 2010-126 § 1 (Exh. A); Ord. 2001-009 § 5].
3.10.060 Exemption – Federal or state political subdivisions.
The tax imposed pursuant to this chapter shall not apply to any deed, instrument, or writing to which the United States or any agency or instrumentality thereof, any state or territory, or political subdivision thereof is a party and is acquiring title or to any deed, instrument, or writing by which real property is conveyed by the state of California, any political subdivision thereof, or agency or instrumentality of either thereof, pursuant to an agreement whereby the purchaser agrees to immediately reconvey the real property to the exempt agency. [Ord. 2010-126 § 1 (Exh. A); Ord. 2001-009 § 6].
3.10.070 Exemption – Conveyance to make effective plan of reorganization or adjustment.
The tax imposed pursuant to this chapter shall not apply to the making, delivering or filing of conveyances to make effective any plan of reorganization or adjustment:
A. Confirmed under the Federal Bankruptcy Act, as amended;
B. Approved in an equity receivership proceeding in a court involving a railroad corporation, as defined in subdivision (44) of Section 101 of Title 11 of the United States Code, as amended;
C. Approved in an equity receivership proceeding in a court involving a corporation, as defined in subdivision (9) of Section 101 of Title 11 of the United States Code, as amended; or
D. Whereby a mere change in identity, form or place of organization is effected.
Subsections (A) through (D) of this section, inclusive, shall only apply if the making, delivery or filing of instruments of transfer or conveyance occurs within five years from the date of such confirmation, approval or change. [Ord. 2010-126 § 1 (Exh. A); Ord. 2001-009 § 7].
3.10.080 Exemption – Order of Securities and Exchange Commission.
The tax imposed pursuant to this chapter shall not apply to the making or delivery of conveyances to make effective any order of the Securities and Exchange Commission, as defined in subdivision (a) of Section 1083 of the Internal Revenue Code of 1954; but only if:
A. The order of the Securities and Exchange Commission in obedience to which such conveyance is made recites that such conveyance is necessary or appropriate to effectuate the provisions of Section 79k of Title 15 of the United States Code, relating to the Public Utility Holding Company Act of 1935;
B. Such order specifies the property which is ordered to be conveyed;
C. Such conveyance is made in obedience to such order. [Ord. 2010-126 § 1 (Exh. A); Ord. 2001-009 § 8].
3.10.090 Exemption – Partnerships.
A. In the case of any realty held by a partnership, no levy shall be imposed pursuant to this chapter by reason of any transfer of an interest in a partnership or otherwise, if:
1. Such partnership (or another partnership) is considered a continuing partnership within the meaning of Section 708 of the Internal Revenue Code of 1986; and
2. Such continuing partnership continues to hold the realty concerned.
B. If there is a termination of any partnership within the meaning of Section 708 of the Internal Revenue Code of 1986, for purposes of this chapter, such partnership shall be treated as having executed an instrument whereby there was conveyed, for fair market value (exclusive of the value of any lien or encumbrance remaining thereon), all realty held by such partnership at the time of such termination.
C. Not more than one tax shall be imposed pursuant to this chapter by reason of a termination described in subsection (B) of this section, and any transfer pursuant thereto, with respect to the realty held by such partnership at the time of such termination.
D. No levy shall be imposed pursuant to this chapter by reason of any transfer between an individual or individuals and a legal entity or between legal entities that results solely in a change in the method of holding title to the realty and in which proportional ownership interests in the realty, whether represented by stock, membership interest, partnership interest, cotenancy interest, or otherwise, directly or indirectly, remain the same immediately after the transfer. [Ord. 2010-126 § 1 (Exh. A); Ord. 2001-009 § 9].
3.10.100 Exemption – Foreclosures.
Any tax imposed pursuant to this chapter shall not apply with respect to any deed, instrument, or writing to a beneficiary or mortgagee, which is taken from the mortgagor or trustor as a result of or in lieu of foreclosure; provided, that such tax shall apply to the extent that the consideration exceeds the unpaid debt, including accrued interest and cost of foreclosure. Consideration, unpaid debt amount and identification of grantee as beneficiary or mortgagee shall be noted on said deed, instrument or writing or stated in an affidavit or declaration under penalty of perjury for tax purposes. [Ord. 2010-126 § 1 (Exh. A); Ord. 2001-009 § 10].
3.10.110 Exemption – Marital property assets in dissolution or separation proceedings.
Any tax imposed pursuant to this chapter shall not apply with respect to any deed, instrument, or other writing which purports to transfer, divide, or allocate community, quasi-community, or quasi-marital property assets between spouses for the purpose of effecting a division of community, quasi-community, or quasi-marital property which is required by a judgment decreeing a dissolution of the marriage or legal separation, by a judgment of nullity, or by any other judgment or order rendered pursuant to the California Family Code, or by a written agreement between the spouses, executed in contemplation of any such judgment or order, whether or not the written agreement is incorporated as part of any of those judgments or orders. In order to qualify for this exemption, the deed, instrument, or other writing shall include a written recital, signed by either spouse, stating that the deed, instrument, or other writing is entitled to the exemption. [Ord. 2010-126 § 1 (Exh. A); Ord. 2001-009 § 11].
3.10.120 Exemption – Inter vivos gifts and trusts.
Any tax imposed pursuant to this chapter shall not apply to any deed, instrument, or other writing which purports to grant, assign, transfer, convey, divide, allocate, or vest lands, tenements, or realty, or any interest therein, if by reason of such inter vivos gift or by reason of the death of any person, such lands, tenements, realty, or interests therein are transferred outright to, or in trust for the benefit of, any person or entity. [Ord. 2010-126 § 1 (Exh. A); Ord. 2001-009 § 12].
3.10.130 Administration.
The county recorder shall administer this chapter in conformity with the provisions of California Revenue and Taxation Code Division 2, Part 6.7 and the provisions of any county ordinance adopted pursuant thereto. [Ord. 2010-126 § 1 (Exh. A); Ord. 2001-009 § 13].
3.10.140 Claims for refund.
Claims for refund of taxes imposed pursuant to this chapter shall be governed by the provisions of California Revenue and Taxation Code Division 1, Part 9, Chapter 5 (Section 5096 et seq.). [Ord. 2010-126 § 1 (Exh. A); Ord. 2001-009 § 14].