Chapter 3.16
REAL PROPERTY TRANSFER TAX*
Sections:
3.16.010 Citation – Statutory authority.
3.16.040 Instruments to secure debts exempted.
3.16.050 Governmental instruments exempted.
3.16.060 Reorganizations and adjustments exempted.
3.16.080 Partnerships exempted.
* For statutory provisions authorizing cities to impose a tax on transfers of real property, see Revenue and Taxation Code § 11901 et seq.
3.16.010 Citation – Statutory authority.
This chapter shall be known as the real property transfer tax ordinance of the city of Fortuna. 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 of California. (Code 1961 § 23-24).
3.16.020 Imposed – 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. (Code 1961 § 23-25).
3.16.030 Payment.
Any tax imposed pursuant to FMC 3.16.020 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. (Code 1961 § 23-26).
3.16.040 Instruments to secure debts exempted.
Any tax imposed pursuant to this chapter shall not apply to any instrument in writing given to secure a debt. (Code 1961 § 23-27).
3.16.050 Governmental instruments exempted.
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 shall be exempt from any tax imposed pursuant to this chapter when the exempt agency is acquiring title. (Ord. 78-397 § 1. Code 1961 § 23-28).
3.16.060 Reorganizations and adjustments exempted.
A. Any tax imposed pursuant to this chapter shall not apply to the making, delivering, or filing of conveyances to make effective any plan or reorganization or adjustment as follows:
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 subdivision (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 subdivision (3) of Section 506 of Title 11 of the United States Code, as amended;
4. Whereby a mere change in identity, form or place of organization is effected; or
5. 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 or 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.
B. Subsections (A)(1) through (A)(5), inclusive 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. (Ord. 78-397 § 2. Code 1961 § 23-29).
3.16.070 SEC orders exempted.
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 subdivision (a) of Section 1083 of the Internal Revenue Code of 1954, but only as follows:
A. If the order of the Securities and Exchange Commission in obedience to which such conveyances 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. If such order specifies the property which is ordered to be conveyed;
C. If such conveyance is made in obedience to such order. (Code 1961 § 23-30).
3.16.080 Partnerships exempted.
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 such partnership (or another partnership) is considered a continuing partnership within the meaning of Section 708 of the Internal Revenue Code of 1954; and 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 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. (Code 1961 § 23-31).
3.16.090 Administration.
The county recorder shall administer this chapter in conformity with the provisions of Part 6.7 of Division 22 of the Revenue and Taxation Code and the provisions of any county ordinance adopted pursuant thereto. (Code 1961 § 23-32).
3.16.100 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 of California. (Code 1961 § 23-33).