Chapter 3.20
REAL PROPERTY TRANSFER TAX1
Sections:
3.20.010 Short title – Adoption authority.
3.20.040 Exemption – Debt instrument.
3.20.050 Exemption – Public agencies.
3.20.060 Exemption – Reorganization or adjustment conveyances.
3.20.070 Exemption – Securities and Exchange Commission order.
3.20.080 Exemption – Partnerships.
3.20.010 Short title – Adoption authority.
This chapter shall be known as the “real property transfer tax ordinance of the city.” It is adopted pursuant to the authority contained in Part 6.7 (commencing with Section 11901) of Division 2 of the Revenue and Taxation Code of the state. (1964 Code § 25.48.)
3.20.020 Imposition – Rate.
There is imposed on each deed, instrument or writing by which any lands, tenements or other realty sold within the city 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. (1964 Code § 25.49.)
3.20.030 Payment.
Any tax imposed pursuant to CMC 3.20.020 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. (1964 Code § 25.50.)
3.20.040 Exemption – Debt instrument.
Any tax imposed pursuant to this chapter shall not apply to any instrument in writing given to secure a debt. (1964 Code § 25.51.)
3.20.050 Exemption – Public agencies.
The United States or any agency or instrumentality thereof, any state or territory or political subdivision thereof, or the District of Columbia shall not be liable for any tax imposed pursuant to this chapter with respect to any deed, instrument or writing to which it is a party, but the tax may be collected by assessment from any other party liable therefor. (1964 Code § 25.52.)
3.20.060 Exemption – Reorganization or adjustment conveyances.
A. Any 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:
1. Confirmed under the Federal Bankruptcy Act, as amended;
2. Approved in an equity receivership proceeding in a court involving a railroad corporation, as defined in subsection (m) of Section 205 of Title 11 of the United States Code, as amended;
3. Approved in an equity receivership proceeding in a court involving a corporation, as defined in subsection (3) of Section 506 of Title 11 of the United States Code, as amended; or
4. Whereby a mere change in identity, form or place of organization is effected.
B. Subsection (A) of this section shall only apply if the making, delivering or filing of instruments of transfer or conveyances occurs within five years from the date of such confirmation, approval or change. (1964 Code § 25.53.)
3.20.070 Exemption – Securities and Exchange Commission order.
Any 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 subsection (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. (1964 Code § 25.54.)
3.20.080 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 1954; 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 1954, 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 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 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. (1964 Code § 25.55.)
3.20.090 Administration.
The county recorder shall administer this chapter in conformity with the provisions of Part 6.7 of Division 2 of the Revenue and Taxation Code and the provisions of any county ordinance adopted pursuant thereto. (1964 Code § 25.56.)
3.20.100 Refunds.
Claims for refund of taxes imposed pursuant to this chapter shall be governed by the provisions of Chapter 5 (commencing with Section 5096) of Part 9 of Division 1 of the Revenue and Taxation Code of the state. (1964 Code § 25.57.)
3.20.110 Operative date.
This chapter shall become operative upon the operative date of any ordinance adopted by the county pursuant to Part 6.7 (commencing with Section 11901) of Division 2 of the Revenue and Taxation Code of the state or upon the effective date of this chapter, whichever is the later. (1964 Code § 25.58.)
For statutory provisions authorizing cities to impose a documentary stamp tax on the sale of real property within the city, see Revenue and Taxation Code § 11901 et seq.