Chapter 3.16
REAL PROPERTY TRANSFER TAX
Sections:
3.16.030 Applicability of provisions.
3.16.040 Exemptions – Public agencies.
3.16.050 Exemptions – Reorganization.
3.16.060 Exemptions – Securities and Exchange Commission orders.
3.16.070 Exemptions – Transfer of interest.
3.16.080 Exemptions – Foreclosure or interspousal transfer.
3.16.010 Imposed.
There is imposed on each deed, instrument, or writing by which any lands, tenements, or other realty sold within the city is 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 of 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. 72-5 § 1, 1972)
3.16.020 Payment.
Any tax imposed pursuant to HMC 3.16.010 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. 72-5 § 2, 1972)
3.16.030 Applicability of provisions.
Any tax imposed pursuant to this chapter does not apply to any instrument in writing given to secure a debt. (Ord. 72-5 § 3, 1972)
3.16.040 Exemptions – Public agencies.
The United States or any agency or instrumentality thereof, any state or territory, or political subdivision thereof, or the District of Columbia, is not 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. The foregoing to the contrary notwithstanding, 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 is exempt from any tax imposed pursuant to this chapter when the exempt agency is acquiring title. (Ord. 72-5 § 4, 1972)
3.16.050 Exemptions – Reorganization.
A. Any tax imposed pursuant to this chapter does 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 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.
B. Subsection A of this section only applies if the making, delivering, or filing of instruments of transfer or conveyances occurs within five years from the date of the confirmation, approval, or change. (Ord. 72-5 § 5, 1972)
3.16.060 Exemptions – Securities and Exchange Commission orders.
Any tax imposed pursuant to this chapter does 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 the conveyance is made recites that the 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. 72-5 § 6, 1972)
3.16.070 Exemptions – Transfer of interest.
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 considering 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 the 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 the partnership at the time of 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 the partnership at the time of the termination. (Ord. 72-5 § 7, 1972)
3.16.080 Exemptions – Foreclosure or interspousal transfer.
A. Any tax imposed pursuant to this chapter does 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 or in lieu of foreclosure; provided, that the tax does 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 the deed, instrument, or writing or stated in an affidavit or declaration under penalty of perjury for tax purposes.
B. Any tax imposed pursuant to this chapter does 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 judgment of nullity, or by any other judgment or order rendered pursuant to Part 5 (commencing with Section 4000) of Division 4 of the Civil 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 the exemption provided in this section, 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 that exemption. (Ord. 82-2 § 2, 1982; Ord. 72-5 § 8, 1972)
3.16.090 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. (Ord. 72-5 § 9, 1972)
3.16.100 Refund claim.
Claims for a 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. (Ord. 72-5 § 10, 1972)